US-based footwear and accessory retailer Designer Brands has reported net sales of $865.0m for the third quarter (Q3) of fiscal 2022 (FY22), up by 1.4% from the same period of the prior fiscal year (FY21).
In the three months to 29 October, the company’s comparable sales grew by 3.0% and its net sales from owned brands increased by 25.0% from a year earlier.
Designer Brands’ gross profit declined to $285.8m in Q3 2022 from $313.6m in the same period of FY21, while its gross margin was 33.0% of its net sales, against 36.7% a year prior.
The company recorded a reported net income of $45.2m and an adjusted net income of $46.1m for the quarter.
Its diluted earnings per share (EPS) for Q3 was $0.65, while its adjusted diluted EPS was $0.67.
Designer Brands CEO Roger Rawlins said: “We continued to make meaningful progress on our long-term brand building strategy while also delivering solid comparable sales across every segment of our business.
“The strategic shifts we have made in our business over the past several years are driving a sustainably higher gross margin rate than 2019 as we have a more targeted focus on customer acquisition, optimising our assortment, and growing the brands we own and control.
“While we are seeing many of the same pressures across the consumer landscape that most retailers are seeing, our flexible business model continues to support our efforts to navigate a dynamic macro environment.
“We are focused on meeting our customers’ footwear needs while we balance inventory and expenses in order to continue growing market share in this volatile environment.”
Designer Brands has reduced its full-year diluted EPS projection to between $1.75 and $1.80, down from its previous forecast of $2.05 to $2.15.
The company’s comparable sales growth expectation remains in the mid-single digits.