Shares of Designer Brands (NYSE:DBI) jumped about 13% in premarket trading Tuesday after the footwear retailer posted quarterly results that exceeded Wall Street forecasts.
For its second quarter, the company reported earnings of $0.34 per share, well above the consensus estimate of $0.14. Revenue reached $739.8 million, also topping expectations of $730.6 million. Comparable sales slipped 5% from the same period last year but showed improvement from the prior quarter.
“Our second quarter results were highlighted by a 280-basis point sequential improvement in comparable sales from the first quarter, underscoring the impact of our targeted operational initiatives,” said Doug Howe, CEO of Designer Brands.
“These initiatives supported a strong start to the back-to-school season within the U.S. Retail segment as well as gradual improvements in traffic and a notable uptick in conversion.”
Despite the strong performance, the company said it would not reinstate full-year 2025 guidance, citing global economic headwinds and policy uncertainty.
“While consumer sentiment has ticked up slightly, given the ongoing macroeconomic volatility with recent extended tariff increases and caution in discretionary spending, there is still a notable amount of uncertainty,” Howe added.
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