Why Designer Brands Stock Tumbled Today

Shares of Designer Brands (NYSE: DBI) were taking a dive today after the footwear retailer missed estimates in its third-quarter earnings report and slashed its full-year guidance due to macroeconomic headwinds. Designer Brands, which is best known for its ownership of DSW, reported decent third-quarter results with comparable sales up 3% and overall revenue up 1.4% to $865 million. Higher inventory caused gross margin to fall 370 basis points to 33%, and so adjusted earnings per share decreased from $0.86 to $0.67.