Designer Brands Drops Nearly 33% In Pre-market On Decreased Q3 Profit, Earnings Outlook

(RTTNews) - Shares of Designer Brands Inc. (DBI) were trading down on Tuesday after the company reported a decline in third-quarter profit and lowered full-year earnings guidance.

DBI was declining 32.94 percent at 8.59 per share in the pre-market trade on the New York Stock Exchange.

For the full year, excluding Keds brand, the company now projects earnings per share of $0.40 to $0.70, lesser than its previous guidance of $1.20 to $1.50. The company expects around $0 contribution from Keds acquisition.

On average, five analysts polled by Thomson Reuters expect the firm to earn $1.3 per share, for the year. Analysts' estimates typically exclude special items.

Excluding Keds brand, for the full year, DBI projects a full-year revenue growth of down high-single digits against its earlier outlook of down mid- to high-single digits.

For the full year, incremental net sales from Keds acquisition are projected to be in the range of $60 million to $70 million, lesser than earlier outlook of $75 million to $85 million.

The company will pay a dividend of $0.05 per share on December 14, to shareholders of record at the close of business on November 30.

For the third-quarter, Designer Brands posted a net income of $10.141 million or $0.17 per share, lesser than $45.171 million or $0.65 per share, registered for the last year's third quarter.

Excluding items, the company's third-quarter earnings stood at $14.811 million or $0.24 per share, below the analysts' estimate of $0.48 per share.

The company's third-quarter revenue dropped to $786.329 million from $865.020 million a year ago.