Designer Brands’ 2023 Sales Hurt by Softening Footwear Market

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Designer Brands’ 2023 Sales: Thursday, Designer Brands revealed a 0.8% decline in Q4 sales to $754.3 million, supported by a 7.3% decline in comparable sales, impacted by a “softening footwear market” in 2023.

Net sales for the fiscal year ended February 3, 2023, for the Columbus, Ohio-based corporation were $3.1 billion, a 7.3% reduction. Total comparable sales for the 12 months were down 9%.

​ “We ended the year strong, with a solid finish to the fourth quarter above the top end of our revised EPS guidance range, led by strength in our brand portfolio segment as a result of acquiring Keds, Topo, and launching Le Tigre,” said Doug Howe, president and CEO. “Despite the results, 2023 was a difficult year as we were impacted by a softening footwear market, highly promotional retail environment, and the impact of unseasonably warm weather on our seasonal footwear business.”

Looking ahead to 2024, we have a significant transition year in store as we want to resume growth across the board,” Howe continued. Our new recruits will help us concentrate on three goals: improving the operational aspects of our brands’ businesses, creating a more convenient shopping experience across all of our channels, and compiling a more current and trend-appropriate variety for our customers. Together with our steadfast commitment to cutting costs, we believe these actions will provide a solid foundation for improved financial performance all year long, allowing us to sustainably generate significant cash flow.

As of February 3, the footwear and apparel corporation has 499 locations in the US and 143 stores in Canada, thanks to one store opening and one store closing in the fourth quarter.

The nomination of Andrea O’Donnell to the positions of brands president and executive vice president of Designer Brands was announced in January by the firm. Her tenure will begin on January 29.

Crown Vintage, Hush Puppies, Jessica Simpson, Keds, Kelly & Katie, Le Tigre, Lucky Brand, Mix No. 6, Topo, Vince Camuto, and a host of other brands are part of the footwear and accessories company’s diverse portfolio in the US. Additionally, it runs the North American locations of The Shoe Company and DSW Designer Shoe Warehouse.

Mia Collins

Mia's love for beauty innovation and her insights into modern lifestyle choices make her the go-to writer for readers seeking to stay ahead of the style curve.

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