Designer Brands, the footwear company based in Columbus, Ohio, has recently released its financial report for the fourth quarter of 2022. Although there was a dip in net sales during this period, the company experienced an overall increase in annual net sales for the year.

The annual net sales for Designer Brands rose by 3.7% to $3.3 billion, showcasing the company’s ability to sustain growth despite challenges. Additionally, comparable sales saw a positive increase of 4.4% for the year, indicating a healthy consumer demand for the company’s products.

However, one of Designer Brands’ brands, Hush Puppies, faced a decline in net sales. The brand’s net sales dropped by 7.5% to $760.5 million, and comparable sales experienced a decrease of 5.5%. Despite this setback, Designer Brands still managed to report a net income of $45.1 million for the three-month period, with diluted earnings per share (EPS) of $0.66.

In terms of the full year, Designer Brands reported a net income of $162.7 million, or diluted EPS of $2.26. CEO Roger Rawlins expressed pride in the company’s brand building strategy, highlighting that the Owned Brands of Designer Brands saw significant growth of over 32% compared to the previous year. This growth also came with higher gross margins than in 2019, showcasing the effectiveness of their business strategy.

Moving forward to 2023, Designer Brands anticipates a decline in net sales in the mid-single digits. The company projects diluted EPS to be between $1.65 and $1.75 for the upcoming year. However, it is important to note that these projections do not include the contributions from the recently acquired Keds brand. It is expected that Keds will bring in additional net sales of between $75 million and $85 million in 2023.

Doug Howe, president of DSW and incoming CEO of Designer Brands, expressed confidence in the company’s overall business strength and its ability to successfully integrate new brands into its portfolio. Howe specifically mentioned the incorporation of Keds, Le Tigre, Topo Athletic, and Hush Puppies as part of the company’s growth strategy.

Despite the challenges posed by a volatile business environment, Designer Brands remains optimistic about its future. With its commitment to offering value and a diverse range of products, the company is well-positioned to meet the needs of its customers in 2023. Additionally, Designer Brands will continue to manage expenses and inventory prudently while driving growth within its portfolio of Owned Brands.

Useful links:
1. Designer Brands Official Website
2. Keds Official Website