Designer Brands Inc.’s sales in the fiscal fourth quarter fell 7.5% and failed to meet market expectations, though a change in valuation allowance on deferred tax assets boosted its bottom line.
The maker of footwear and accessories posted a profit of $45.1 million, or 66 cents a share, for the three months ended Jan. 28, compared with $14.4 million, or 19 cents a share, in the same quarter a year ago.
Stripping out one-time items, adjusted earnings were 7 cents a share. Analysts polled by FactSet had been expecting a loss of 2 cents a share.
Sales were $760.5 million, down from $822.6 million in the year-ago period and missing analyst expectations for $791.8 million, according to FactSet.
Comparable sales, which strip out the effects of store openings and closings, were down 5.5% from a year ago. The company closed three stores during the quarter.
Shares fell 4.2%, to $7.93, in premarket trading Thursday.
