Reasons You should Get this: Designer Brands Inc. (NYSE: DBI)

Designer Brands Inc. stock identified change of 168.46% away from 52-week low price and recently located move of -64.98% off 52-week high price. It has market worth of $480.71M and dividend yield of 12.18%. DBI stock has been recorded 19.84% away from 50 day moving average and -45.29% away from 200 day moving average. Moving closer, we can see that shares have been trading 3.81% off 20-day moving average.

Designer Brands Inc. (DBI) reported financial results for the three months ended May 2, 2020, contrast to the three months ended May 4, 2019.

First Quarter Operating Results

Net sales reduced 44.7% to $482.8M.

Comparable sales reduced 42.3% for first quarter of fiscal 2020 contrast to a 3.0% increase in the first quarter of fiscal 2019.

Stated consolidated gross profit reduced $285.8M to a loss of $26.5M in the first quarter as contrast to a profit of $259.3M in the same period last year. This was primarily driven by increased inventory markdown activity and the resulting increase in inventory reserves of $84.0M over the same period last year, higher shipping costs associated with a raise in digital penetration, and the deleveraging of distribution and fulfillment and store occupancy expenses on lower sales volume.

Recorded impairment charges of $112.5M as a result of the material reduction in net sales and cash flows Because of the temporary closure of all stores.

Stated net loss was $215.9M, or $3.00 loss per diluted share, including pre-tax charges totaling $112.3M, or $1.17 per diluted share, primarily related to impairment charges, integration and restructuring expenses and COVID-19 incremental costs, partially offset by governmental credits the Company is able to claim.

Adjusted net loss was $131.8M, or $1.83 loss per diluted share.

Liquidity Highlights

Cash and investments totaled $250.9M at the end of the first quarter contrast to $121.9M for the same period last year. Debt totaled $393.0M at the end of the first quarter contrast to $235.0M debt outstanding for the same period last year, reflecting net borrowings from our senior revolving credit contract (the “Credit Facility”).

During the quarter, the Company amended its $400M Credit Facility and increased borrowings by $203.0M as a precautionary measure to increase its cash position and preserve financial flexibility considering uncertainty in the U.S. and global markets resulting from COVID-19. The Company continues to actively pursue further options to increase financial flexibility. While there is no immediate need to raise capital at the present time, the Company intends to evaluate assessing the financing markets and may look to raise capital, when and if the Company deems it prudent, to further strengthen its balance sheet.

The Company has reached alignment with nearly all major vendors and landlords on past-due amounts and has extended go-forward payment terms.

The Company ended the quarter with inventories of $533.6M, down 16.9% contrast to the same period last year, primarily Because of strong inventory controls and higher inventory reserves versus the previous year.

The Consumer Cyclical sector company, Designer Brands Inc. noticed change of 4.02% to $6.98 along volume of 1684770 shares in recent session compared to an average volume of 2087.61K. DBI’s shares are at -29.49% for the quarter and driving a -61.03% return over the course of the past year and is now at -55.65% since this point in 2018.

 

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