Shares of Designer Brands (DBI) - Get Designer Brands Inc. Class A Report advanced after the DSW parent swung to a fiscal second quarter profit, driven by increased store traffic, while it sought to gain market share in the athleisure and children's categories.
Shares of the Columbus, Ohio, company at last check rose 6.3% to $16.81.
The company posted net income of $42.9 million, or 55 cents a share, for the quarter ended July 31, compared with a loss of $92.2 million, or $1.36 a share, in the year-earlier period.
Revenue increased 67% to $817.3 million from $489.7 million.
A survey of analysts by FactSet produced consensus estimates of GAAP earnings of 25 cents a share, or an adjusted 24 cents, on revenue of $747.7 million.
"Our tremendous second quarter results reflect successful execution on our short-term priorities coupled with our strategy to gain market share in athleisure and kids," said Chief Executive Roger Rawlins in a statement.
"Our sales results were driven by increased store traffic as we substantially grew our loyal customer base and welcomed core DSW customers back into our stores," Rawlins added.
Designer Brands has 515 U.S. stores and 143 Canadian stores.
"Given the positive momentum and strength of our strategy, we expect to achieve an adjusted operating income in the second half of fiscal 2021 that will be in-line or slightly better than fiscal 2019 levels," said Rawlins.
DBI designs and produces footwear and accessories via Camuto Group. Camuto is a manufacturer that owns licensing rights for the Jessica Simpson footwear business and footwear and handbag licenses for Lucky Brand.
And through a joint venture with the New York brand manager Authentic Brands, DBI owns a stake in Vince Camuto, Louise et Cie and others.