Designer Brands revenues shoot up 23% in Q1
Following its change of name from DSW earlier this year, American footwear retailer Designer Brands Inc. reported skyrocketing revenues for the first quarter of 2019 on Thursday, as its recently acquired businesses performed above expectations.
For the first quarter ended May 4, 2019, the company announced total revenues of $878.5 million, including $51.8 million from the consolidation of its Canada retail segment and $94.0 million from its brand portfolio segment.
The retailer’s most recent quarterly revenues represented a 23.4% increase from the $712.1 million reported in the prior-year period, while comparable sales rose 3.0%.
Net income was $31.2 million, or $0.40 per diluted share, up from $24.3 million, or $0.30 per diluted share, in the same period in the previous year.
“We had a strong start to the year, delivering double-digit increases in both revenue and earnings as we start to demonstrate the power of an integrated global Designer Brands Inc.,” said the company’s CEO Roger Rawlins in a release. “The quarter saw strength across the board – with growth in key operating metrics, segments, and geographies. In fact, our DSW banner, the Shoe Company banner and Camuto Group all performed at or above our expectations, with the U.S. Retail and ABG segments delivering positive comparable sales.”
The company acquired Camuto Group, a footwear and accessories manufacturer, in partnership with Authentic Brands in November of last year for a combined sum of $341 million, as part of a strategic shift towards transformative acquisitions.
This change is, in turn, part of a wider turnaround strategy announced by the company earlier this year. The plan is based around three main points of focus, namely offering differentiated products and experiences, growing market share, and leveraging the company’s scale to drive operational efficiency and optimize inventory management.
In light of its quarterly results, Designer Brands raised its full year outlook for adjusted EPS, which are now expected to be between $1.87 and $1.97, compared to a previous guidance of between $1.80 and $1.90.
The company maintained its outlook for full-year revenue, which is predicted to see low double-digit growth, and for comparable sales, which are expected to increase in the low single-digits.
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