Designer Brands booked sales of $771.9 million in the fiscal second quarter, down 2.6 per cent from the year-ago period.

Its US retail net sales fell 2.6 per cent to $641.7 million while Canada retail grew 6.4 per cent to $74.8 million. Brand portfolio net sales rose 14 per cent to $96 million.

“We saw sustained pressure on challenged categories such as dress and seasonal in the second quarter, which we were able to partially mitigate through providing a greater selection of athletic and athleisure brands in our assortment,” said Doug Howe, CEO of Designer Brands.

“We continue to believe that our investments across our retail and brand businesses will help us to accelerate growth moving forward as we sharpen our focus and optimize our assortment, our marketing, and our omnichannel customer experience.”

The company’s net income dropped 62.8 per cent to $13.8 million, impacted by restructuring, integration, and acquisition costs.

Designer Brands ended the quarter with 499 stores after closing one in the US and opening two in Canada.

The company forecasts flat to single-digit net sales growth for the fiscal year.