Designer Brands Inc. (NYSE:DBI) Q4 2023 Earnings Conference Call March 21, 2024 8:00 AM ET Company Participants Dustin Hauenstein - SVP of Finance Doug Howe - CEO Jared Poff - CFO Conference Call Participants Mauricio Serna - UBS Dylan Carden - William Blair Dana Telsey - Telsey Group Operator Good morning everyone, and welcome to the Designer Brands, Inc. Fourth Quarter 2023 Earnings Call. [Operator Instructions] Please also note, today's event is being recorded. At this time, I'd like to turn the floor ov ...

Exhibit 99.1 Designer Brands Inc. Reports Fourth Quarter and Fiscal Year 2023 Financial Results Delivered full year 2023 EPS at the high end of guidance range Fourth quarter performance driven by sequential improvement in comparable sales Issues fiscal 2024 guidance reflecting expectations for return to growth COLUMBUS, Ohio, March 21, 2024 - Designer Brands Inc. (NYSE: DBI) (the "Company" and "Designer Brands"), one of the world's largest designers, producers, and retailers of footwear and accessories, ann ...

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COLUMBUS, Ohio, March 7, 2024 /PRNewswire/ -- Designer Brands Inc. (NYSE: DBI), one of the world's largest designers, producers and retailers of footwear and accessories, announced the Company will issue its fourth quarter and full year 2023 earnings on March 21, 2024. Management will host a conference call to discuss the results at 8:30 am E.T. A press release detailing the Company's results will be issued prior to the call. Investors and analysts interested in participating in the call are invited to dial ...

Financial Data and Key Metrics Changes - For the third quarter, sales decreased by 9.1% year-over-year to $786.3 million, with U.S. retail comps down 9.8% and Canada down 7.7% [63] - Adjusted net income was $14.8 million or $0.24 diluted EPS, compared to $46.1 million or $0.67 last year [36] - Consolidated gross margin was 32.6%, a decrease of 40 basis points from the previous year, primarily due to increased promotional pricing [64] - Adjusted SG&A ratio increased to 28.9% of sales from 25.5% in the prior year, driven by deleverage from topline pressures [65] Business Line Data and Key Metrics Changes - The Retail segment, including DSW stores and e-commerce, experienced a sales shortfall, particularly in seasonal and dress categories, while casual footwear saw mid-single-digit comp sales growth [7][8] - The Brand Portfolio segment saw overall sales down 12.5%, with declines in legacy brands offset by strong performance from Keds, Topo, and Hush Puppies [9] - Vince Camuto's e-commerce site, vc.com, reported a 7% comp sales increase for the quarter, driven by demand for wide and extra wide shaft boots [34] Market Data and Key Metrics Changes - The total footwear market declined for the first time since the pandemic, with seasonal footwear down 16% based on dollar sales [51] - DSW's performance lagged behind the overall market, with seasonal footwear representing nearly 40% of its business, leading to disproportionate pressure [51] Company Strategy and Development Direction - The company aims to reinvigorate its assortment, optimize market investments, and enhance shopping experiences both in-store and online [12][22] - There is a focus on building relationships with national brands and expanding offerings in the casual and athleisure segments [28][52] - The company is investing in top-of-funnel marketing to increase brand awareness and attract customers back to stores [59] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macro headwinds affecting consumer traffic and the overall footwear market, emphasizing the need for speed and innovation [5][33] - The company does not expect sales pressures to alleviate in the near term, with a conservative outlook for the fourth quarter [33][70] - Management expressed confidence in the long-term strategy and the ability to navigate current challenges [54] Other Important Information - The company returned $82.5 million to shareholders through dividends and share repurchases in the third quarter [38] - Total debt outstanding was $375.5 million as of the end of the quarter, with a solid liquidity position of $267.9 million [39][68] Q&A Session Summary Question: Can you elaborate on brand awareness and investments to bring customers back? - Management is working on balancing top-of-funnel marketing with performance marketing, acknowledging the latency impact of such investments [46][74] Question: When do you expect macro pressures to alleviate? - Management indicated that macro pressures are expected to persist into the first half of next year, with customers remaining selective in discretionary purchases [49] Question: How did sales trend around Thanksgiving and Cyber Monday? - There was a lull in sales following Cyber Monday, with customers being selective and waiting until the last minute for purchases [80] Question: Which brands within the portfolio show strength and where is there room for improvement? - Management expressed encouragement with the performance of Keds and Topo, while noting that the brand portfolio largely performed within expectations [82]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 28, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-32545 DESIGNER BRANDS INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...

Financial Data and Key Metrics Changes - Designer Brands reported a net sales decline of 7.8% year-over-year to $792.2 million, although this marked an improvement from the first quarter [41][31] - Adjusted operating profit was 7.9% of sales, down from 8.2% in the prior year but improved sequentially from 3.5% in Q1 2023 [22] - Adjusted net income was $39.4 million or $0.59 diluted EPS, compared to $46.1 million or $0.62 last year [22][41] - Gross margin increased to 34.5%, up 10 basis points year-over-year and improved 250 basis points sequentially [60] Business Line Data and Key Metrics Changes - Retail comps were down 8.9% year-over-year but showed sequential improvement from Q1 [31][59] - Wholesale net sales increased by approximately 20%, driven by the integration of Keds and Topo Athletic brands [31][59] - Own brands penetration increased by 60 basis points to 25% of total revenue year-to-date [13] Market Data and Key Metrics Changes - Canadian comps were down 7.3%, following a strong post-COVID recovery of over 47% in Q2 2022 [42] - The casual category continues to show strength, while the boot category is anticipated to perform well in the upcoming season [66][67] Company Strategy and Development Direction - The company aims to double sales of its own brands from 2021 to 2026, with a focus on strategic growth through new brand launches and partnerships [31][12] - Recent leadership changes, including the hiring of Laura Denk as President of Designer Shoe Warehouse, are expected to enhance brand positioning and growth [10][29] - The company is committed to returning capital to shareholders, having returned $91.1 million year-to-date through dividends and share repurchases [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic pressures but reaffirmed full-year 2023 guidance, citing sequential improvements from Q1 to Q2 [38][49] - The company is cautiously optimistic about inventory positioning heading into fall, with expectations of reduced promotional activity as inventory normalizes [61][68] - Management highlighted the importance of maintaining flexibility in inventory management to capitalize on opportunistic buys [61] Other Important Information - The company ended Q2 with inventories of $606.8 million, down 13% year-over-year [44] - A term loan was established to support capital allocation priorities, with an initial draw of $50 million [47] - The IRS tax refund of $40 million is pending, which will be used to pay down debt [48] Q&A Session Summary Question: Changes in category performance from Q2 to Q1 and inventory thoughts for the fall season - Management noted improvements in casual categories and expressed cautious optimism for the boot category as the season approaches [66][67] Question: Guidance on promotional activity and inventory levels - Management indicated that while promotional activity remains high, they expect inventory levels to normalize, reducing the need for promotions [68] Question: Insights on quarter-to-date performance and sales growth expectations for Q3 and Q4 - Management reaffirmed guidance, anticipating a material shift in performance as they face easier comps in the latter half of the year [75][76] Question: Potential for increased share repurchases given balance sheet leverage - Management confirmed ongoing share repurchase activity, viewing it as a vote of confidence in their long-term strategy [78]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 29, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-32545 DESIGNER BRANDS INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or ...

Financial Data and Key Metrics Changes - Designer Brands reported a net sales decline of 10.7% in Q1 2023, totaling $742.1 million, compared to a robust growth of 18.1% in Q1 2022 [4][45] - Adjusted net income for Q1 2023 was $14.3 million, or $0.21 per diluted EPS, down from $36.7 million, or $0.48 per diluted EPS in the prior year [14][45] - The adjusted SG&A ratio increased to 28.9% of sales from 26.8% in Q1 2022, while adjusted operating profit decreased to 3.5% of sales from 6.6% [14][45] Business Line Data and Key Metrics Changes - The casual category showed strength, with women's casual sales up 7% and men's up 4% compared to the prior year [5] - The clearance business in the U.S. saw a 5% increase in comps on a net basis during the quarter [21] - The men's Crown Vintage business grew by 32% in Q1, driven by casuals [41] Market Data and Key Metrics Changes - U.S. retail comps were down 12% for the quarter, while Canada posted a 3% comp increase on top of a 41% gain last year [45] - Total retail comps decreased by 10% compared to a strong 15% comp in Q1 2022 [45] - Inventory levels decreased to $637.4 million from $672.5 million year-over-year, with a 4% reduction in retail square footage [46] Company Strategy and Development Direction - The company is focusing on increasing its own brands' penetration to 27% of net sales and aims to double sales of its own brands from 2021 to 2026 [6][22] - Designer Brands is working on becoming the exclusive licensee of the Hush Puppies brand in the U.S. and Canada, which is expected to enhance its comfort and casual categories [8] - The company plans to elevate its partnership with Nike, aiming to provide a premium assortment across men, women, and kids [42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging macroeconomic environment affecting consumer spending, leading to a lower sales and earnings guidance for 2023 [11][15] - The company expects a recovery in consumer discretionary spending may be delayed, but remains optimistic about long-term growth [15][27] - Management noted that the first quarter was more challenging than anticipated, particularly in the seasonal product category [13][20] Other Important Information - The company is integrating recent acquisitions, including Keds, Le Tigre, and Topo Athletic, which are expected to contribute to growth [6][16][24] - The company is planning a Dutch auction tender offer to repurchase up to $100 million in Class A common stock [33][49] - The effective tax rate on adjusted results was 25.7%, down from 29.3% last year [14] Q&A Session Summary Question: Can you elaborate on the elevation of the partnership with Nike? - Management expressed excitement about the changes in the product portfolio and the ongoing dialogue with Nike, aiming to bring back offerings across men's, women's, and kids' categories in Q4 [51][52] Question: What has not materialized in the anticipated trajectory change for Q2? - Management noted that the promotional environment is broadly spread across categories, with strength in casuals but not enough to offset declines in dress and seasonal products [37] Question: What categories are seeing the most increase in promotions? - Management indicated that the increase in promotions is fairly equal across categories, with a focus on managing through the discretionary spending pressures [37]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 29, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ...