Total comparable sales were down by 9.3% year-on-year, while gross profit declined by 10.3% to US$$256.4 million with a gross margin of 32.6%.

Reported net income attributable to the company was US$10.1 million, while adjusted net income came in at US$14.8 million.

In the third quarter, Designer brands opened one store in the U.S. and six stores in Canada for a total of 499 U.S. stores and 144 Canadian stores.

Looking forward, the company is expecting net sales to be down in high-single digits, an improvement from its outlook following the previous quarter.

CEO Doug Howe said: “This quarter, we were impacted by a footwear market that contracted for the first time since Covid, coupled with unseasonably warm weather, which significantly reduced customer demand for shoes and pressured our heavily seasonal assortment.

“We saw improved performance in casual and clearance categories this quarter, but this was not enough to offset the broader lack of demand. While macro pressures notably impacted our business, we clearly recognise the need to operate with even greater speed and increase the level of innovation, newness, and fashion into our assortments, returning to our roots as a merchant organisation and a fashion footwear retailer.”