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