Designer Brands reports Q3 adjusted EPS 27c, consensus 35c

Reports Q3 revenue $777.19M, consensus $802.14M. Total comparable sales decreased by 3.1%. Doug Howe, CEO stated, “The third quarter started strong, driven by back-to-school season and the success of our athletic and athleisure offerings, bolstering our confidence that we had reached a turning point in our business. However, we had a difficult transition into the fall season, with unseasonably warm weather and ongoing macroeconomic uncertainty placing pressure on consumer discretionary spending, specifically in our seasonal category. As a result, we saw our total Company comparable sales decline 3.1% for the quarter. According to Circana, footwear sales excluding boots remained flat to prior year in the footwear market while U.S. Retail segment sales excluding boots grew 8% versus prior year, outpacing the footwear market results. This gives us further confidence that we are investing our time and resources into the right areas as we continue to transform our business.”