Designer Brands’ net sales dive 26.6% in the fiscal fourth quarter

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in his free… read more.
on Mar 16, 2021
  • Designer Brands’ net sales dive 26.6% in the fiscal fourth quarter.
  • The American company reports £96.61 million of net loss in Q4.
  • Designer Brands' was 2% down in premarket trading on Tuesday.

Designer Brands Inc. (NYSE: DBI) said on Tuesday that its sales in the fiscal fourth quarter came in lower than what analysts had anticipated. The company, however, topped forecasts for per-share loss in Q4.

Designer Brands shares that you can conveniently trade online via several apps were about 2% down in premarket trading on Tuesday. Including the price action, the stock is now exchanging hands at £11.23 per share versus a low of £2.29 per share in March 2020, when the impact of the COVID-19 crisis was at its peak. In comparison, Designer Brands had started 2021 at a per-share price of £5.18.

Designer Brands’ Q4 financial results versus analysts’ estimates

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Designer Brands said that it concluded the fourth quarter with £96.61 million of net loss that translates to £1.33 per share. On an adjusted basis, the American company lost 38.21 pence in Q4. Designer Brands’ earnings report comes a week after Dick’s Sporting Goods reported its financial results for the fiscal fourth quarter.

The Columbus-based company reported £439.36 million of sales in the recent quarter that represent a 26.6% decline from the year-ago figure of £598.11 million. According to FactSet, experts had predicted £452.26 million of sales for Designer Brands in the fourth quarter. Their estimate for adjusted per-share loss stood at a broader 49.03 pence.

Other prominent figures in Designer Brands’ Q4 report on Tuesday include a 20.1% decline in comparable sales and an 8.3% drop in reported operating expenses. In separate news from the U.S., Arkansas attorney general sued Walgreens on Tuesday over opioid crisis.

Designer Brands’ full-year results for fiscal 2020

For fiscal 2020 as a whole, Designer Brands posted £1.59 billion of net sales or 36% lower than the previous year. Its full-year adjusted net loss registered at £203.10 million or £2.81 per share.

Chief Executive Roger Rawlins commented on the financial update on Tuesday and said:

“Designer Brands’ fourth quarter continues our story of sequential improvement in unprecedented market conditions. I am proud of our team’s exceptional execution of our near-term strategy as we continued to pivot our assortment to athleisure and kids, focused on the Top 50 brands in footwear and leaned even further into our digital-first capabilities.”

Designer Brands performed largely downbeat in the stock market last year with an annual decline of roughly 50%. At the time of writing, it is valued at £830 million.

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