Designer Brands Inc., a fashion retail company based in Columbus, Ohio, has reported strong sales for the second quarter of 2022. Revenues increased by over 5%, driven by the company’s direct-to-consumer and wholesale channels. Net sales rose to $859.3 million, with comparable sales increasing by 6.2%. Direct-to-consumer sales for the company’s own brands reached $155.7 million, while wholesale sales reached $39.1 million. U.S. retail sales saw a 1.5% increase, totaling $734.1 million, while Canada retail sales skyrocketed by an impressive 35.9% to $78.3 million. The company’s brand portfolio sales also experienced growth, increasing by 31.5% to $66.4 million.

In terms of net income, Designer Brands Inc. reported $46.2 million for the second quarter, with diluted earnings per share of $0.62. This is an improvement compared to the same quarter of the previous year, which saw net income of $42.9 million and diluted earnings per share of $0.55. The company expressed satisfaction with these results and highlighted the sustained strength of its direct-to-consumer and wholesale channels into the third quarter. The back-to-school season has also performed well, thanks to an expanded assortment of athletic and kid’s products. The addition of Le Tigre to their brand portfolio and their partnership with Reebok have further boosted their success.

Looking ahead, Designer Brands Inc. maintains its expectation of mid-single digit growth for full-year comparable sales. However, the company has updated its forecast for diluted earnings per share, now anticipating it to be in the range of $2.05 to $2.15, instead of the previous forecast of $1.90 to $2.00 per share. The company remains confident in its ability to achieve these results and is well-positioned for the second half of the year.

Sources:
Designer Brands Inc. Official Website
Designer Brands Inc. Reports Second Quarter 2022 Results