Designer Brands Inc.’s stock slid 34% Tuesday, after the parent to footwear brands including DSW, Keds, Lucky Brand and Vince Camuto posted weaker-than-expected third-quarter earnings and cut its guidance. Columbus, Ohio-based Designer Brands
DBI,
-32.79%
said it was hurt by a footwear market that contracted for the first time since the pandemic amid unseasonably warm weather.
“The third quarter was difficult for our business,” Chief Executive Douglas Howe told analysts on the company’s earnings call, according to a FactSet transcript. “Macro headwinds continued to impact us most acutely within our retail-segment traffic as consumers remain under pressure and the overall footwear market contracted for the first time since the pandemic. Because our business is heavily weighted towards Dress and Seasonal, unseasonably warm weather also had an outsized impact on our top line,” he said. But that wasn’t the only issue. “We also faced headwinds that we believe demonstrate our need to operate with even greater speed while increasing the level of innovation, newness and fashion in our assortments,” he added. Weak demand for boots posed a special challenge, Howe said. And while retail continued to perform well, driven by value-leaning customers, and clearance sales were down 3%, it was not enough to offset the declines elsewhere, he said. Also read: Under Armour no longer expects revenue to grow this year “Within our retail segments, which include DSW Stores, Shoe Company and their related e-commerce sites, our top line fell short of our expectations, driven by seasonal product deman …
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DBI,
-32.79%
said it was hurt by a footwear market that contracted for the first time since the pandemic amid unseasonably warm weather.
“The third quarter was difficult for our business,” Chief Executive Douglas Howe told analysts on the company’s earnings call, according to a FactSet transcript. “Macro headwinds continued to impact us most acutely within our retail-segment traffic as consumers remain under pressure and the overall footwear market contracted for the first time since the pandemic. Because our business is heavily weighted towards Dress and Seasonal, unseasonably warm weather also had an outsized impact on our top line,” he said. But that wasn’t the only issue. “We also faced headwinds that we believe demonstrate our need to operate with even greater speed while increasing the level of innovation, newness and fashion in our assortments,” he added. Weak demand for boots posed a special challenge, Howe said. And while retail continued to perform well, driven by value-leaning customers, and clearance sales were down 3%, it was not enough to offset the declines elsewhere, he said. Also read: Under Armour no longer expects revenue to grow this year “Within our retail segments, which include DSW Stores, Shoe Company and their related e-commerce sites, our top line fell short of our expectations, driven by seasonal product deman …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]