Designer Brands Raises FY22 EPS Outlook; Plans To Double Owned Brands Sales By FY26

(RTTNews) - Designer Brands Inc. (DBI) increased its fiscal 2022 EPS outlook range to a range of $1.80 to $1.90, from previous guidance range of $1.75 to $1.85. Analysts polled by Thomson Reuters expect the company to report profit per share of $1.75. Analysts' estimates typically exclude special items.

Designer Brands announced a five-year financial roadmap through which it expects to deliver significant bottom-line growth. By fiscal 2026, the company expects to achieve: revenue of $4 billion; gross profit margin of 35%; operating margin of 9%; and an EPS in range of $2.75 to $2.85. Also, the company plans to generate over $1 billion of cash from operating activities over the next five years. Designer Brands noted that this growth will be driven by doubling Owned Brand sales, from 19% of total revenue to nearly one-third.

The company's Board has approved the reinstatement of the regular quarterly cash dividend to shareholders, starting in the first quarter of fiscal 2022. A dividend of $0.05 per share of class A stock will be paid on May 6, 2022 to shareholders of record as of the close of business on April 22, 2022.