Designer Brands Sets FY26 Revenue Goal of $4 Billion

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Designer Brands Inc. plans to hit a $4 billion revenue goal by fiscal year 2026.

The company said in a statement that it expects to achieve a gross profit margin of 35%, an operating margin of 9% improving by more than 200 basis points, an EPS range of $2.75 to 2 $.85 and generation of over $1 billion in cash from operating activities during the period. next five years.

Updating its financial outlook for the year ahead, Designer Brands said EPS is now expected to be between $1.80 and $1.90.

“Our own brands are the primary driver of growth over the next five years, and we expect to double sales of these brands by fiscal year 2026. This growth is complemented by maintaining our relationships with key partners. nationally branded brands that use our core omnichannel capabilities. in their own DTC efforts in a way unique to DBI,” said Roger Rawlins, Managing Director of Designer Brands.

The company expects long-term growth to be driven by the doubling of sales of company-owned brands, which will rise from 19% of total revenue to almost a third, most of these activities taking place in the company’s own DTC channels. The company added that the growth is highly accretive to margins and should increase the operating margin over the long term.

The company also announced that its board of directors has approved the reinstatement of a regular quarterly cash dividend to shareholders, beginning in the first quarter of fiscal 2022. A dividend of 5 cents per Class A common share will be paid May 6. 2022 to shareholders of record at the close of business on April 22, 2022.

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