Earnings at DSW, Shoe Carnival and Nike

Welcome back to FN Daily, where we break down the biggest stories happening in footwear and retail.

We're approaching the home stretch of earnings season, but we've got slew of new reports today from Shoe Carnival, DSW and Nike.

Here's what you need to know.

Designer Brands Posts Q4 Loss After ‘Difficult’ 2023, Shares Fall

Shares of Designer Brands Inc. (DBI) dropped on Thursday morning in pre-market trading after the retailer reported a decline in comparable sales for the fourth quarter and year.

Net sales for the DSW parent company decreased 0.8 percent to $754.3 million in the fourth quarter of 2023. Comparable sales also decreased by 7.3 percent in the period while adjusted net loss was $25.3 million, with loss per diluted share of 44 cents. The results beat analysts’ expectations that targeted a net loss of 47 cents and sales of $747.35 million.

In a statement, DBI chief executive officer Doug Howe described 2023 as “a difficult year” due to a “softening footwear market, highly promotional retail environment, and the impact of unseasonably warm weather on our seasonal footwear business.” He added that DBI’s portfolio of owned brands, including Keds, Topo,?Le Tigre, helped guide the company’s Q4 performance.

Despite the challenges, Howe said the company plans to return to growth in 2024 during what he described as a “transition year.”

The Nike Equation: Since Nike returned to DSW stores in September, sales of the brand have almost returned to pre-Covid levels. Nike is already one of DSW's top national brands.

Shoe Carnival Reports Mixed Quarter as Rogan’s Integration Takes Hold

Shoe Carnival wrapped up fiscal 2023 on Thursday by delivering a mixed quarter.

The Evansville, Ind.-based footwear retailer reported net sales in the quarter of $280.2 million, down 3.6 percent compared to the same time the prior year. This performance was driven by strong sales growth during the key December holiday period, the company said. Net income in the quarter was $15.5 million, or 57 cents per diluted share, compared to year-ago net income of $21.6 million, or 79 cents per diluted share.

For the full fiscal year 2023, net sales were $1.18 billion, down from $1.27 billion in fiscal 2022. Net income for the year was $73.3 million, or $2.68 per diluted share, down from $110.07 million, or $3.96 per diluted share in 2022.

“We are well positioned to advance our strategy to be the nation’s leading family footwear retailer by accelerating growth, as well as pursuing additional growth initiatives and M&A opportunities in the future,” Mark Worden, president and chief executive officer of Shoe Carnival, said in a statement.

Nike Beats Sales, Earnings Projections in Q3 as Leadership Touts Innovation Pipeline

Nike Inc. got a lift on Thursday afternoon after the company reported sales and earnings results that beat expectations.

The strong report came after a challenging Q2 in December, when Nike announced new measures to “streamline” its organization to save up to $2 billion in costs over the next three years. These measures included layoffs, product simplification and increased automation.

In recent months, market watchers have become increasingly skeptical of Nike’s progress within its “Consumer Direct Acceleration” (CDA) program it rolled out in June 2020, which involves zeroing in on DTC and digital channels and pulling out of some wholesale channels. Many have also criticized what they see as a lack of innovation from Nike.

“We are making the necessary adjustments to drive Nike’s next chapter of growth,” Nike president and chief executive officer John Donahoe said in a statement. “We’re encouraged by the progress we’ve seen, as we build a multiyear cycle of new innovation, sharpen our brand storytelling and work with our wholesale partners to elevate and grow the marketplace.”

Need more shoe news?

• Academy Sports Shares Dip Despite Sales Turnaround in Q4
• Larroudé Among Accessories Council’s 2024 ACE Award Honorees
• Galeries Lafayette Franchises Saved by Debt Deal
• Everyone’s Talking About Nike’s Innovation Problem

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