Q4 2024 Designer Brands Inc Earnings Call Transcript
Key Points
- Designer Brands Inc (DBI) returned to positive comps in the fourth quarter of fiscal 2024 for the first time in nine quarters, indicating a positive trend in sales performance.
- The company delivered full-year adjusted EPS of $0.27, which was at the upper end of their revised guidance range of $0.10 to $0.30.
- DBI made significant progress in revitalizing its assortment, increasing athleisure penetration by 5 percentage points and expanding relationships with top brand partners.
- The Brand Portfolio segment achieved operating profitability for the first time, with sales up approximately 12% in the fourth quarter and 14% for the full year.
- DBI returned $79 million to shareholders through dividends and share repurchases, demonstrating a commitment to shareholder value.
- Total sales for the fourth quarter were down 5% year-over-year due to the impact of the 53-week year in 2023.
- Full-year total company sales were down roughly 2% compared to the previous year, with comps down 1.7%.
- The company experienced a 900 basis point decrease in the boot category, highlighting challenges in certain seasonal product lines.
- DBI anticipates first-quarter performance in 2025 to be below last year's first quarter due to a slower-than-expected start and macroeconomic uncertainties.
- The company faces continued pressure on initial markup (IMU) due to growth in athletic and national brands, which could impact gross margins.
Good day, and welcome to the Designer Brands Inc fourth quarter 2024 earnings call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Dustin Hauenstein, Senior Vice President of Finance. Please go ahead.
Good morning. Earlier today, the company issued a press release comparing results of operations for the 13-week and 52-week periods ended February 1, 2025, to the 14-week and 53-week period ended February 3, 2024. Please note that the financial results that we will be referencing during the remainder of today's call excludes certain adjustments recorded under GAAP unless specified otherwise. For a complete reconciliation of GAAP to adjusted earnings, please reference our press release.
Additionally, please note that remarks made about the future expectations, plans and prospects of the company constitute forward-looking statements. Results may differ materially due to the various factors listed in today's press
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