Why Footwear And Accessories Retailer Designer Brands' Shares Are Tumbling Today
Portfolio Pulse from Lekha Gupta
Designer Brands Inc. (NYSE:DBI) shares fell after reporting Q4 FY23 results with a slight sales decline and a larger drop in comparable sales. Despite beating sales and EPS estimates, gross profit and margins decreased. The company also reported a net loss, reduced inventories, and a stable store count. A dividend was announced, and a modest FY24 EPS outlook was provided amidst challenges in the footwear market.
March 21, 2024 | 1:09 pm
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Designer Brands Inc. reported a slight decline in Q4 FY23 sales but beat EPS estimates. The company faces challenges in the footwear market but plans for growth in FY24.
The decline in DBI's share price is directly related to its Q4 FY23 performance, which showed a decrease in sales and comparable sales, along with a reduced gross profit and margins. Despite beating sales and EPS estimates, the overall negative performance and cautious FY24 outlook contribute to a negative short-term impact on the stock.
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