More from Footwear News

• Academy Sports Sees 'Challenged' Q2, Lowers Yearly Guidance

• Under Armour Cuts Outlook on Higher Restructuring Charges

• DTC Channel Drives Golden Goose H1 Growth

Designer Brands Inc. (DBI) downgraded its 2024 outlook after it delivered fiscal second quarter earnings and sales results that fell short of expectations.

Net sales for the DSW parent company decreased 2.6 percent to $771.9 million in the second quarter. Comparable sales decreased 1.4 percent in the period, while adjusted net income was $17.1 million, with adjusted diluted EPS of 29 cents.

The results fell short of analysts’ expectations that targeted sales of $816.14 million and EPS of 53 cents.

DBI chief executive officer Doug Howe said in a statement that dress and seasonal categories were challenged in Q2, but overall sales declines were somewhat mitigated by strength in athletic and athleisure brands, the latter of which saw sales increase eight percent compared to the prior year.

“Our strategy successfully supported a solid start to the back-to-school season, particularly in our kids’ category, which helped us to exit the second quarter in a stronger position than we started,” Howe said.

DBI downgraded its outlook for the 2024 fiscal year, and now expects sales growth to be between flat and in the low-single digits. EPS is expected to be in the range of 50 cents to 60 cents.

Last quarter, DBI rolled out a new strategic business initiative to put consumers first while “being product obsessed and transformation-focused.” The retailer tapped Sarah Crockett as chief marketing officer of DSW in tandem with this new plan.

“We continue to believe that our investments across our retail and brand businesses will help us to accelerate growth moving forward as we sharpen our focus and optimize our assortment, our marketing, and our omnichannel customer experience,” Howe said. “With shoppers becoming increasingly mindful of their discretionary spending, and trends rapidly evolving, we want to ensure that we remain top of mind as the destination for all their footwear needs.”

Best of Footwear News

• 11 Fast Facts About Ross Dress For Less & Why Prices Are So Low

• A Look Inside Kith Seoul, the First Kith Flagship in South Korea: Photos

• How Fifth Avenue Has Evolved Through the Years

Sign up for FN's Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.