Designer Brands Inc shares sank 31% to $8.80 in early Tuesday trading after the footwear and accessories discount retailer reported third quarter 2023 financial results that fell short of analyst expectations on most metrics.
Designer Brands generated adjusted earnings per share (EPS) for the period of $0.24 on revenue that fell 9.1% year over year to $786.3 million.
The analyst consensus forecast was for adjusted EPS of $0.43 and $822.8 million in revenue.
"This quarter, we were impacted by a footwear market that contracted for the first time since COVID coupled with unseasonably warm weather, which significantly reduced customer demand for shoes and pressured our heavily seasonal assortment," Designer Brands CEO Doug Howe said in a statement.
The company’s same-store sales, meanwhile, declined 9.3% year over year compared with the 3.6% reduction expected by Wall Street.
Designer Brands also lowered its full-year EPS guidance to a range of $0.40 to $0.70, from $1.20 to $1.50 previously, with sales expected to be down in the high single digits, compared with previous guidance of being lower by mid-to-high single digits.
Contact Sean at sean@proactiveinvestors.com