Designer Brands expects its ongoing transformation strategy to drive growth in FY25 after reporting improvements in the fourth quarter.

Designer Brands’ portfolio includes Topo Athletic, Keds, Vince Camuto, Kelly & Katie, Jessica Simpson, Lucky Brand, Mix No 6, Crown Vintage and others.

The company’s CEO, Doug Howe, said he is confident the turnaround efforts will drive continued stability and growth, including low-single-digit sales growth and higher earnings, this fiscal year. 

“We anticipate our reinvigorated efforts to be customer-first and product-obsessed will help us better understand our customers and strengthen our product offerings through a data-driven approach. 

“Although we do see pressure on the consumer in the short term as a result of ongoing inflation, rising prices and less discretionary income, we believe these initiatives will drive improved financial performance through 2025 and continue to position us well for long-term, sustainable growth,” Howe elaborated.

Designer Brands recently posted an improvement for the first time in nine quarters, with fourth-quarter comparable sales up 0.5 per cent. 

Management attributed the uplift to the company’s strengthened leadership, revitalized assortment, better marketing strategies, and optimized brand portfolio.

For the full fiscal 2024, comparable sales were down 1.7 per cent and net sales down 2.1 per cent. Reported net loss was $10.5 million, while adjusted net income was $15 million.