Designer Brands Announces Q1 2020 Financial Results
Designer Brands has announced the Q1 2020 financial results. According to the details, the net sales of the company decreased to 44.7% to $482.8 million. The comparable sales of the company decreased by 42.3% in the Q1 2020 as compared to the 3.0% increase in the previous quarter of 2019.
The consolidated gross profit of the company decreased to $285.8 million in the Q1 2020 as compared to the profit of $259.3 million of the previous quarter of 2019. The recorded impairment charges of the company reached $112.5 million in net sales and cash flows due to closure of all its stores.
The cash and investment of the company were $250.9 million in the Q1 2020 as compared to the $121.9 million of the same period of 2019.
Chief Executive Officer of Designer Brands, Inc, Roger Rawlins said, “As we said last quarter, the effect of COVID-19 on our industry has been unprecedented and has created many significant near-term challenges. The pandemic necessitated store closures and heavily impacted consumers, resulting in total comparable sales being down 42% during the first quarter.”
“I am proud of how our team has responded to the challenges and what we were able to accomplish in the first quarter. Over the past several years, we have made significant investments in our digital infrastructure, and, as a result, we were able to generate strong digital demand during the first quarter, which resulted in digital demand representing 50% of total demand for the quarter, growing 25% over last year,” Mr. Rawlin further added.
“We also leveraged our best-in-class inventory controls to end the quarter with inventory units on hand flat versus last year. We have adjusted our near-term areas of focus to prioritize growing with the top fifty brands in footwear and further emphasizing our everyday value. We are also laser-focused on maintaining and preserving sufficient liquidity,” Mr. Rawlin concluded.