•
Feb 01

Designer Brands Q4 2024 Earnings Report

Designer Brands reported fourth quarter 2024 results with decreased sales and a net loss, but showed growth in comparable sales for the first time in nine quarters.

Key Takeaways

In Q4 2024, Designer Brands reported net sales of $713.6 million, a 5.4% decline year-over-year. Despite the decline in sales and a reported net loss of $38.2 million, comparable sales increased by 0.5%, reflecting progress from strategic initiatives. Gross margin improved to 39.6%.

Net sales in Q4 2024 decreased by 5.4% to $713.6 million.

Reported net loss attributable to Designer Brands was $38.2 million, with a loss per diluted share of $0.80.

Adjusted net loss was $21.3 million, or $0.44 per diluted share.

Gross margin improved to 39.6%, up from 38.8% in the same quarter last year.

Total Revenue
$714M
Previous year: $754M
-5.4%
EPS
-$0.44
Previous year: -$0.44
+0.0%
Comparable sales growth
0.5%
Previous year: -7.3%
-106.8%
Gross margin
39.6%
Previous year: 38.8%
+2.1%
Inventory
$600M
Gross Profit
$283M
Previous year: $222M
+27.3%
Cash and Equivalents
$44.8M
Previous year: $58.8M
-23.8%
Total Assets
$2.01B
Previous year: $2.01B
+-0.0%

Designer Brands

Designer Brands

Designer Brands Revenue by Segment

Forward Guidance

Designer Brands projects low-single-digit net sales growth and expects full-year 2025 diluted EPS between $0.30 and $0.50.

Positive Outlook

  • Expectations of profitable growth for fiscal 2025.
  • Continued focus on customer-first and product-obsessed strategy.
  • Strengthening product offerings through a data-driven approach.
  • Guidance reflects confidence in business transformation efforts.
  • Dividend declared for shareholders with ongoing repurchase activity.

Challenges Ahead

  • Pressure on consumers due to ongoing inflation.
  • Impact of rising prices and lower discretionary income.
  • Decreased net sales in the most recent quarter.
  • Higher debt levels reaching $491.0 million.
  • Net loss reported despite strategic initiatives.

Revenue & Expenses

Visualization of income flow from segment revenue to net income