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Designer Brands Q4 net sales slide 27 percent

By Huw Hughes

17 Mar 2021

Business

US fashion retailer Designer Brands has reported a 26.6 percent drop in net sales for the fourth quarter of the year.

For the three months to January 30, 2021, the company’s net sales fell to 609.4 million dollars compared to 829.6 million dollars a year earlier.

Reported net loss widened to 134 million dollars from 7.6 million dollars the prior year, while adjusted net loss increased to 38.6 million dollars compared to 7.8 million dollars a year earlier.

Comparable sales fell by 20.1 percent in the period, though that was partially offset by a 19 percent increase in athletic comparable sales in the US retail segment.

Focus on athletic segment

CEO Roger Rawlins described the Q4 performance as a “sequential improvement in unprecedented market conditions” and said the company will focus in the near-term on pivoting its assortment to athleisure and kids and leaning further into its digital-first capabilities.

Rawlins said in a statement: “In 2021, Designer Brands will further stabilize our business by continuing to invest in the premier footwear brands our consumers demand, improving our digital and omnichannel capabilities and leveraging our ability to design and source goods.”

For the full year, net sales decreased 36 percent to 2.2 billion dollars, with comparable sales down 34.2 percent.

The company’s net loss widened to 488.7 million dollars from 94.5 million dollars a year earlier, while its adjusted net loss increased to 281.7 million dollars from 109.6 million dollars.

Rawlins continued: “When demand shifts back to dress and seasonal, our Camuto team will be well-prepared to capitalize on our historical success in these categories while protecting our newly captured market share in the athletic segment.

“We have a significant amount of inventory open to buy and the capability to flex our business as customer preferences evolve, making us a dominant player with room to grow as the market recovers.”

Image: Designer Brands

Designer Brands