One of North America's largest footwear and accessories producer retailers, Designer Brands reported that for the second quarter ended Aug. 4, it earned 37 cents a share, including net charges of 11 cents.
Adjusted EPS was 48 cents a share, in line with the 48-cent expectations, according to a Bloomberg survey, but down from the 63 cents it earned in the year-ago quarter.
The Columbus, Ohio, owner of DSW brands said second-quarter revenue was $860.2 million vs. the estimate of $873 million.
Net sales in the U.S. were off 2% to $677.9 million. Net sales in Canada dropped 12.7% to $63.3 million. Its Brand Portfolio net sales were $95.4 million. Gross margin narrowed 2.1 percentage points to 30%, the company said.
With a second-quarter store count of 657, down 38 locations, comparable sales beat estimates, dropping 0.6% vs. a gain of 9.7% in the year.-earlier quarter Analysts expected a comparable-sales drop of 1.1%, according to Bloomberg.
The company said it repurchased 2.7 million shares in the quarter and 6.1 million shares in the fiscal year to date. Over the past 12 months Designer Brands returned $249.2 million to shareholders through share buybacks and dividends.
Chief Executive Roger Rawlins in a statement noted that Designer Brands had integrated two significant acquisitions. The company has "greater control and flexibility" in "a world full of extraordinary external pressures," he said.
"Each segment delivered what was needed this quarter, but our newest businesses really stood out, exceeding our expectations and moving us closer to the vision laid out at our Investor Day," he said.
The stock has three buy ratings, five holds and no sells, according to Bloomberg.
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