American retail conglomerate Designer Brands has announced its financial results both for Q4 and the year ended January 28, 2023.
For the final quarter of 2022, YoY net sales had decreased 7.5 percent to 760.5 million dollars, while comparable sales also saw a decline of 5.5 percent.
Meanwhile, the group’s gross profit fell to 222 million dollars, at 29.2 percent, compared to its 254.2 million dollars last year, at 30.9 percent.
Designer Brands’ net income sat at 45.1 million dollars, or diluted earnings per share of 66 cents.
Its adjusted income was reported as 4.7 million dollars.
The company’s full year operating results were slightly more positive than its final quarter, with an increase in net sales of 3.7 percent to 3.3 billion dollars.
While its comparable sales also increased by 4.4 percent, its gross profit was flat compared to the previous year at 1.1 billion dollars.
Its adjusted net income was 133.7 million dollars, while its net income attributable to the group was 162.7 million dollars, or diluted EPS of 2.26 dollars.
Designer Brands’ cash and cash equivalents totaled 58.8 million dollars at the end of 2022, down from 72.7 million dollars the previous year. It currently has 243.9 million dollars available under its senior secured asset-based revolving credit facility.
Newly acquired brands to boost FY23
Its debt for the end of 2022 sat at 281 million dollars, down from 225.5 million the previous year, with inventories coming in at 605.7 million dollars compared to its prior 586.4 million dollars.
In a release, Roger Rawlins, CEO, said that the 2022 results had shown the success of Designer Brands’ brand building strategy, with its portfolio having grown over 32 percent to last year.
Rawlins added: “These results showcase the successful execution of our strategy. I am incredibly proud of our team and their tireless efforts, and I am excited about what lies ahead for Designer Brands."
For its outlook for the full year 2023, the group expected its net sales growth to be down mid-single digits, while its incremental net sales from its Keds acquisition is expected to reach 75 to 85 million dollars.
Next to Keds, the group will also be continuing to integrate Le Tigre, Topo Athletic and Hush Puppies to its round up, with Doug Howe, president of DSW and incoming CEO, stating: “Although we are navigating through a volatile environment, we are well-positioned to offer great value and a diverse assortment of product to our customers as we head into 2023.
“We will continue to be prudent in managing our expenses and inventory and drive growth in our portfolio of increasingly diversified Owned Brands."