Designer Brands sets revenues target of 4 billion dollars for FY26
10 April, 2022
Designer Brands Inc. expects to reach a revenue target of 4 billion dollars by fiscal 2026.
The company said in a release that it anticipates achieving gross profit margin of 35 percent, operating margin of 9 percent improving over 200 basis points, EPS range of 2.75 dollars to 2.85 dollars and generation of over 1 billion dollars of cash from operating activities over the next five years.
Updating its financial outlook for the year ahead, Designer Brands said, EPS is now expected to be in the range of 1.80 dollars to 1.90 dollars.
"Our Owned Brands are the key driver of growth over the next five years, and we plan to double sales of these brands by fiscal 2026. This growth is complemented by maintaining our relationships with top National Brand partners who utilise our leading omni-channel capabilities in their own DTC efforts in ways unique to DBI," said Roger Rawlins, chief executive officer of Designer Brands.
The company expects that the long-term growth will be driven by doubling company-owned brand sales, from 19 percent of the total revenue to nearly one-third, with most of that business happening within the company’s own DTC channels. The company added that the growth is highly margin accretive and is expected to drive operating margin higher over the longer-term.
The company also announced that its board of directors has approved the reinstatement of a regular quarterly cash dividend to shareholders, starting in the first quarter of fiscal 2022. A dividend of 5 cents per share of Class A common stock will be paid on May 6, 2022 to shareholders of record as of the close of business on April 22, 2022.
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Source: fashionunited.uk
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