Good weather is clearly not good for sales of shoes and boots, among other accessories.
So says retail shoe giant DSW parent Designer Brands (DBI) - Get Report, which reported fiscal third-quarter profit that missed expectations and also a cut in its forward guidance on Tuesday amid better-than-expected fall weather.
And tariffs. The Columbus, Ohio-based company posted adjusted per-share earnings of 67 cents, below analysts’ consensus forecasts of 74 cents, as it faced “several meaningful headwinds” that impacted results.
Those meaningful headwinds included “…near-record warm weather during our largest and most profitable quarter, which affected every segment of our business,” as well as enacted “very material” footwear tariffs, according to CEO Roger Rawlins.
Designer Brands' portfolio includes DSW Designer Shoe Warehouse and Camuto Group.
For fiscal 2019, Designer Brands now expects flat same-store sales versus previous guidance for low single-digit growth. The company still expects low double-digit revenue growth.
Shares of Designer Brands were down 13.59%, or $2.31 a share, at $14.69 in premarket trading on Tuesday. The stock has fallen more than 31% year to date.