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Designer Brands Inc. Class A (DBI-4.72%) has submitted its 10-Q filing for the quarterly period ended November 2, 2024.
The filing shows a decrease in net sales to $777.2 million from $786.3 million in the same quarter the previous year, attributed to unseasonably warm weather and macroeconomic uncertainties affecting consumer spending.
Gross profit for the quarter was $247.4 million, down from $256.4 million in the previous year. The gross profit margin decreased to 31.8% from 32.6% due to changes in product mix and higher freight costs.
Operating expenses decreased to $210.5 million from $230.8 million, primarily due to lower marketing expenses and incentive compensation.
The company reported net income attributable to Designer Brands Inc. of $13.0 million, or $0.24 per diluted share, compared to $10.1 million, or $0.17 per diluted share, in the previous year.
Interest expense increased to $11.6 million from $8.8 million due to a higher average debt balance.
Cash provided by operating activities was $12.1 million, a significant decrease from $202.5 million in the same period the previous year, due to higher working capital requirements and lower net income.
Designer Brands repurchased 10.3 million Class A common shares during the nine months ended November 2, 2024, at an aggregate cost of $68.6 million.
The company continues to face challenges from macroeconomic conditions, including consumer spending volatility and supply chain disruptions.
Designer Brands remains focused on managing its liquidity and capital resources, with sufficient cash flow and credit availability to support ongoing operations and strategic initiatives.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Designer Brands Inc. Class A quarterly 10-Q report dated December 10, 2024. To report an error, please email earnings@qz.com.