• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Investing What made Designer Brands stock tank 25% on Thursday?
Investing

What made Designer Brands stock tank 25% on Thursday?

by December 1, 2022
by December 1, 2022 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Designer Brands Inc (NYSE: DBI) is down nearly 25% this morning after the shoes and fashion accessories company reported a disappointing third quarter and lowered its guidance for the future.

Designer Brands’ update on inventory levels

According to Designer Brands, inventory has returned to more “normalised” levels but was still up 13% versus the same quarter last year. In the earnings press release, CEO Roger Rawlins said:

We’re focused on meeting our customers’ footwear needs while we balance inventory and expenses in order to continue growing market share in this volatile environment.

Heading into this retail news, Wall Street had a consensus “hold” rating on Designer Brands stock.

Designer Brands third-quarter financial highlights

Earned $45.2 million versus the year-ago $80.2 millionPer-share earnings tanked from $1.04 to 65 centsOn an adjusted basis, EPS came in at 67 centsSales went up 1.50% year-on-year to $865 millionConsensus was 72 cents a share on $877 million in salesComparable sales up 3.0% were better-than-expected

Designer Brands ended the quarter with $62.5 million in cash and equivalents. Owned brands made up 26.5% of total sales this quarter versus 21.5% a year ago. CEO Rawlins noted:

Strategic shifts we’ve made over the past several years are driving sustainably higher gross margin rate than 2019 as we have a more targeted focus on customer acquisition, optimising assortment, and growing brands we own and control.

Designer Brands stock down on lowered guidance

For the full financial year, Designer Brands is now calling for $1.75 to $1.80 of per-share earnings on about a 5.0% increase in same-store sales. Still, the Chief Executive added:

While we’re seeing many of the same pressures across the consumer landscape that most retailers are seeing, our flexible business model continues to support our efforts to navigate a dynamic macro environment.

Versus its year-to-date high, Designer Brands stock is now down nearly 40%.

The post What made Designer Brands stock tank 25% on Thursday? appeared first on Invezz.

You Might Also Like
  • Could we still have a Santa Claus rally through the year-end?
  • Long Straddle Options Strategy: The Ultimate Guide
  • AMC CEO forgoes pay raise for 2023
  • Pro: buying Peloton stock is ‘absolute nonsense’
Share
0
FacebookTwitterPinterestWhatsapp

previous post
European Central Bank says Bitcoin is dead
next post
Manufacturing-Sector Contracts in November

You may also like

European Central Bank says Bitcoin is dead

December 1, 2022

Shell vs Chevron stock: One clear winner by far

January 4, 2023

BTC hovers near $17K as analyst identifies area of ‘real...

December 12, 2022

The Importance  of Proactive Hedging in Options Trading

March 23, 2023

Should I buy Salesforce shares after Q3 results?

December 8, 2022

Grayscale Bitcoin: GBTC discount to NAV narrows to -38.55%

January 10, 2023

Expert: Jeff Bezos could come back to lead Amazon again

January 5, 2023

7 Steps To Take Your Investments To The Next Level

January 20, 2023

Ocado share price is soaring but major headwinds remain

January 9, 2023

Diageo share price forms a wide symmetrical triangle

November 25, 2022

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters renovation

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025
    • OpenAI to release web browser in challenge to Google Chrome

      July 10, 2025
    • Sports executive charged with bid-rigging in Texas arena project

      July 10, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,631 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,919 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,607 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,577 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,451 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters...

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    World Bank warns of global recession...

    January 11, 2023

    Stock market soars as inflation comes...

    December 13, 2022

    Eurozone Inflation Drops as ECB Plans...

    November 30, 2022
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here