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• Total Sales Decline: 5% year-over-year decline in total sales for Q4 due to the 53-week comparison.

• Comparable Sales: Q4 comps up 1%; full-year comps down 1.7%.

• Adjusted EPS: $0.27 for the full year, at the upper end of guidance range.

• US Retail Comps: Up 1% in Q4; full-year comps down over 1%.

• Canada Retail Comps: Up 5% in Q4; full-year comps down 2%.

• Brand Portfolio Sales: Up 12% in Q4; up 14% for the full year.

• Gross Margin Expansion: Expanded by 100 basis points for the year.

• Operating Expenses Reduction: Reduced by nearly 700 basis points in the Brand Portfolio segment.

• Net Sales: $714 million in Q4; $3 billion for the full year.

• Consolidated Gross Profit: 39.6% in Q4, increased by 80 basis points.

• Adjusted Operating Loss: $23.5 million in Q4, improved from $30.2 million last year.

• Adjusted Net Income: $15 million for the full year.

• Inventory Levels: Up 5% at the end of Q4.

• Shareholder Returns: $79 million returned through dividends and share repurchases in 2024.

• Total Debt: $491 million at the end of the year.

• Cash and Liquidity: $44.8 million in cash; $172.1 million total liquidity.

• Warning! GuruFocus has detected 7 Warning Signs with DBI.

Release Date: March 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Designer Brands Inc (NYSE: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.

Negative Points

• 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.