Designer Brands Inc. (NYSE:DBI) share prices dropped more than 10% today, despite the Q1 beat. The company posted Q1 EPS of $0.12, better than the analyst estimate of a loss of $0.18 per share. Revenue stands at $703.2 million, again higher than the Street estimate of $651 million.

The report implied that the company has likely completely recovered from the impact of the pandemic, however, the stock saw a sharp decline today following the results, which according to Jon Quast from Fool.com, makes no sense.

During the conference call, Roger Rawlins, the Chief Executive Officer of the company said that the strong start of fiscal 2021 was driven by green shoots in the business areas previously affected by COVID-19, synergies from the company’s vertical capabilities becoming active, which allowed the company to take advantage of positive trends faster.