Designer Brands’ shares surged in early Thursday trading after the footwear and accessories retailer posted second-quarter sales and earnings that beat expectations.
The owner of Designer Shoe Warehouse reported net sales of $792.2 million for the quarter ended July 29, 2023, down 7.8% from a year earlier but ahead of analysts’ consensus of $785.7 million.
Adjusted diluted earnings per share (EPS) of $0.59, down from $0.62, were also ahead of consensus expectations for $0.44.
“Our portfolio of Owned Brands and National Brand partners remains strong and we are excited to be rolling out our new athletic and athleisure offerings from Le Tigre and Keds while continuing to elevate our relationship with Nike during a time that athletic and athleisure demand continues to grow,” CEO Doug Howe said in a statement.
"The unique synergies between our legacy retail business and our brand portfolio are putting us on a path to being more resilient than ever and we will continue to build out our leadership and structure our teams accordingly.”
The company has maintained its full-year guidance for net sales of $75 million to $85 million and EPS of $1.20 to $1.50, excluding any contribution from its Keds acquisition.
The company acquired Keds from Wolverine Worldwide at the beginning of the year.
Its shares were 17% higher at $12.17 by midmorning in New York.
Contact the author at stephen.gunnion@proactiveinvestors.com