Designer Brands Inc., the parent company of popular retail chains DSW Designer Shoe Warehouse, The Shoe Company, and Shoe Warehouse, has experienced a significant boost in net sales during the third quarter. The company, based in Columbus, Ohio, achieved a year-over-year growth of 30.7% in this period, with its U.S. retail operations leading the way.

During the quarter, which ended on October 30, 2021, Designer Brands Inc. generated $853.5 million in net sales, a notable increase from $652.9 million in the same period the previous year. This represents a growth rate of 30.7%. Additionally, comparable sales showed a significant uptick, rising by 40.8% in the quarter.

The primary driver behind the sales growth for Designer Brands was its U.S. retail segment, which saw sales rise by 41.4% year over year to reach $709.6 million. The company’s Canada retail segment also experienced growth, although at a slightly lower rate of 21.4%, with sales totaling $74.8 million. The brand portfolio segment of Designer Brands Inc. witnessed a 23.9% increase in sales, amounting to $103.9 million.

In terms of profitability, the company reported a quarterly net income of $80.2 million, or $1.04 per diluted share. This marks a significant improvement compared to a loss of $40.6 million, or $0.56 per diluted share, in the same period last year.

CEO Roger Rawlins commented on the outstanding third-quarter results, stating that they showcase the effectiveness of the strategic plans implemented before the pandemic, which were then further accelerated over the past 18 months. Rawlins also noted that the company continues to see strength in key areas such as athletic and athleisure footwear, children’s footwear, men’s footwear, and a rebound in sales for its vertical brands.

For the year-to-date period, Designer Brands reported net sales of $2.4 billion, reflecting a substantial increase of 46.1% compared to $1.7 billion in the same nine months of the previous year. Net income for the period amounted to $140.1 million, or $1.81 per diluted share, a significant improvement compared to a loss of $354.7 million, or $4.92 per diluted share, in the previous year.

Looking ahead to the fourth quarter, Designer Brands Inc. anticipates that net sales will remain flat or increase by low-single digits compared to the same period in 2020. The company also predicts that diluted earnings per share for the period will range from $0.10 to $0.15.

During the third quarter, Designer Brands opened five new stores and closed four, resulting in a total of 515 locations in the U.S. and 144 in Canada as of October 30. This expansion underscores the company’s ongoing commitment to offering customers a wide range of fashionable footwear options.

Designer Brands Inc.’s strong performance in the third quarter demonstrates its resilient business strategies and effective response to the challenges posed by the pandemic. As the company moves forward, it remains well-positioned for continued growth and success in the retail market, both in the U.S. and Canada.

Useful links:
DSW Official Website
The Shoe Company Official Website