Financial Performance - Net sales for the three months ended November 2, 2024, were $777,194, a decrease of 1.5% compared to $786,329 for the same period in 2023[11] - Gross profit for the nine months ended November 2, 2024, was $745,428, down 2.9% from $767,532 in the prior year[11] - Operating profit for the three months ended November 2, 2024, was $22,816, a decline of 18.4% from $28,121 in the same period last year[11] - Net income attributable to Designer Brands Inc. for the three months ended November 2, 2024, was $13,012, an increase of 28.3% from $10,141 in the prior year[11] - Basic earnings per share for the three months ended November 2, 2024, were $0.25, compared to $0.17 for the same period in 2023, reflecting a 47.1% increase[11] - Comprehensive income attributable to Designer Brands Inc. for the three months ended November 2, 2024, was $12,485, compared to $7,640 in the same period last year, representing a 63.5% increase[13] - Net income attributable to Designer Brands Inc. for the three months ended November 2, 2024, was $13,012 thousand, compared to $10,141 thousand for the three months ended October 28, 2023, representing a 28.4% increase[17] - Operating profit decreased by $47.6 million, or 43.9%, to $60.8 million for the nine months ended November 2, 2024, compared to $108.4 million for the same period in 2023[108] - Net income attributable to Designer Brands Inc. for the nine months ended November 2, 2024, was $27.6 million, a decrease of $31.1 million, or 53.0%, from $58.8 million in the prior year[108] - Basic earnings per share decreased by 46.2% to $0.50 for the nine months ended November 2, 2024, compared to $0.93 for the same period in 2023[108] Assets and Liabilities - Total assets as of November 2, 2024, were $2,080,764, a slight increase from $2,076,232 as of February 3, 2024[15] - Current liabilities decreased to $567,611 as of November 2, 2024, from $622,271 in the previous quarter, indicating improved liquidity[15] - Cash and cash equivalents decreased to $36,227 as of November 2, 2024, down from $54,638 at the end of October 2023[15] - Total debt as of November 2, 2024, was $542,172 thousand, an increase of 42.5% from $380,571 thousand as of October 28, 2023[71] - The company reported a decrease in gift card liabilities to $23.7 million as of November 2, 2024, down from $26.2 million at the end of the previous year[51] Cash Flow - The company reported a net cash provided by operating activities of $12,137 thousand for the three months ended November 2, 2024, a significant decrease from $202,521 thousand for the same period last year[19] - Net cash provided by operating activities decreased to $12.1 million for the nine months ended November 2, 2024, down from $202.5 million, a change of $190.4 million[124] - Net cash used in investing activities was $50.7 million, primarily due to capital expenditures of $38.9 million and the acquisition of the Rubino business for $16.1 million[126] - Net cash provided by financing activities was $26.2 million, driven by net receipts of $113.0 million from the ABL Revolver, offset by the repurchase of 10.3 million Class A common shares at a cost of $68.6 million[127] Impairment and Charges - The company reported an impairment charge of $17,756 for the three months ended November 2, 2024, with no similar charge in the prior year[11] - The company recorded impairment charges of $9.2 million for long-lived assets during the three and nine months ended November 2, 2024[33] - An impairment charge of $7.0 million was recorded for the ownership interest in Le Tigre, resulting in no remaining value[34] - Impairment charges totaled $17.8 million, including $9.2 million related to a vacated leased corporate office and $7.0 million for the write-off of an equity investment[103] Sales Performance - Total net sales for the three months ended October 28, 2023, were $786.3 million, a decrease from $803.3 million in the same period last year, representing a decline of approximately 2.5%[48] - For the nine months ended November 2, 2024, total net sales reached $2.2957 billion, compared to $2.3206 billion for the same period last year, indicating a decrease of about 1.1%[50] - The U.S. Retail segment reported net sales of $615.5 million for the three months ended November 2, 2024, slightly down from $631.6 million in the prior year, a decrease of approximately 2.5%[50] - The Canada Retail segment saw an increase in net sales to $83.5 million for the three months ended November 2, 2024, compared to $75.6 million in the same period last year, representing a growth of about 10.5%[50] - Total comparable sales decreased by 3.1% compared to the same period last year, with U.S. Retail segment down by 2.8% and Canada Retail segment down by 4.6%[89] Shareholder Actions - The company repurchased 10.3 million Class A common shares at an aggregate cost of $68.6 million during the nine months ended November 2, 2024[66] - The company declared a quarterly cash dividend payment of $0.05 per share for both Class A and Class B common shares, payable on December 20, 2024[68] - The company repurchased a total of 7.7 million Class A common shares at an average price of $6.51 during the three months ended November 2, 2024[145] Strategic Initiatives - The company has a 40.0% ownership interest in ABG-Camuto and a 33.3% interest in Le Tigre, both of which are integral to the Brand Portfolio segment[24] - On April 8, 2024, the company completed the acquisition of Rubino Shoes Inc. for $16.1 million in cash, expanding its Canada Retail segment into Quebec[25] - The company is investing in new technology for supply chain optimization, expected to reduce costs by FF%[157] - Recent acquisitions are anticipated to enhance product offerings and increase market share by GG%[157] - The management emphasized a strategic shift towards sustainability, aiming for a HH% reduction in carbon footprint by 2025[157] Market Outlook - Overall, the company remains optimistic about future performance, citing strong consumer demand and effective marketing strategies[157] - The company provided guidance for the next quarter, projecting revenue growth of CC%[157] - Designer Brands Inc. is expanding its market presence in international regions, targeting a growth rate of EE% in those markets[157]

Financial Performance - Net sales for the third quarter of 2024 decreased by 1.2% to $777.2 million compared to the same period last year[4]. - Total comparable sales declined by 3.1% for the quarter[5]. - Gross profit decreased to $247.4 million, with gross profit as a percentage of net sales at 31.8%, down from 32.6% last year[6]. - Reported net income attributable to Designer Brands Inc. was $13.0 million, or diluted earnings per share (EPS) of $0.24[6]. - Adjusted net income was $14.5 million, or adjusted diluted EPS of $0.27[7]. - Total net sales for the three months ended November 2, 2024, reached $777,194,000, a decrease from $786,329,000 for the same period last year, reflecting a decline of 3.1%[21]. - For the nine months ended November 2, 2024, total net sales were $2,295,690,000, compared to $2,320,628,000 for the same period last year, a decrease of 1.1%[25]. - Net sales for the three months ended November 2, 2024, were $777.194 million, a decrease of 1.4% from $786.329 million for the same period last year[27]. - Gross profit for the three months ended November 2, 2024, was $247.445 million, down 3.4% from $256.406 million in the prior year[27]. - Operating profit decreased to $22.816 million for the three months ended November 2, 2024, compared to $28.121 million for the same period last year, representing a decline of 18.9%[27]. - Net income attributable to Designer Brands Inc. was $13.012 million for the three months ended November 2, 2024, an increase of 28.3% from $10.141 million in the prior year[27]. - Diluted earnings per share increased to $0.24 for the three months ended November 2, 2024, compared to $0.17 for the same period last year, reflecting a growth of 41.2%[27]. Inventory and Cash Position - Cash and cash equivalents totaled $36.2 million at the end of the third quarter, down from $54.6 million at the same time last year[8]. - The company ended the third quarter with inventories of $637.0 million, compared to $601.5 million last year[9]. - Total current assets as of November 2, 2024, were $800.673 million, an increase of 2.0% from $799.809 million as of October 28, 2023[29]. - The company reported impairment charges of $17.756 million for the three months ended November 2, 2024, compared to no impairment charges in the same period last year[27]. Store Operations - The company closed three stores in the U.S. and opened two stores in Canada, resulting in a total of 496 stores in the U.S. and 179 stores in Canada as of November 2, 2024[11]. - The total number of stores increased to 675 as of November 2, 2024, from 643 stores as of October 28, 2023, indicating a growth in physical retail presence[24]. Sales by Segment - Direct-to-consumer sales for owned brands amounted to $130,753,000 for the three months ended November 2, 2024, compared to $154,201,000 for the same period last year, representing a decrease of 15.1%[22]. - The U.S. Retail segment experienced a comparable sales decline of 2.8% for the three months ended November 2, 2024, compared to a decline of 9.8% for the same period last year[24]. - The Canada Retail segment reported a comparable sales decline of 4.6% for the three months ended November 2, 2024, compared to a decline of 7.7% for the same period last year[24]. - Owned brands' total sales for the nine months ended November 2, 2024, were $611,634,000, compared to $611,634,000 for the same period last year, indicating stable performance[21]. Financial Outlook - The updated financial outlook for 2024 indicates net sales growth is now expected to be down low single digits, and adjusted diluted EPS is projected to be between $0.10 and $0.30[12]. - Adjusted operating profit for the three months ended November 2, 2024, was $43.590 million, compared to $31.402 million in the prior year, marking a significant increase of 38.7%[31]. Other Financial Metrics - Total liabilities increased to $1.758986 billion as of November 2, 2024, compared to $1.713724 billion as of October 28, 2023, indicating a rise of 2.6%[29]. - The company’s total assets as of November 2, 2024, were $2.080764 billion, a slight increase from $2.076232 billion as of October 28, 2023[29]. Future Considerations - Comparable sales for the Canada Retail segment will exclude the impact of foreign currency translation and will be calculated using the prior year's exchange rate[34]. - Stores from the Rubino acquisition that have been operational for at least 14 months will be included in the comparable base starting Q2 2025[34]. - E-commerce net sales from the Brand Portfolio segment will be included in the calculation of comparable sales[34].

Company Overview - Designer Brands Inc. is one of the world's largest designers, producers, and retailers of footwear and accessories, with a mission to inspire self-expression [2] - The company has a diversified portfolio of brands including Crown Vintage, Hush Puppies, Jessica Simpson, Keds, and others, and operates a robust direct-to-consumer omni-channel infrastructure [2] - Designer Brands has a billion-dollar digital commerce business and operates 675 DSW Designer Shoe Warehouse, The Shoe Co., and Rubino stores in North America [2] Upcoming Earnings Announcement - Designer Brands will issue its third quarter 2024 earnings on December 10, 2024, with a conference call scheduled for 8:30 am E.T. [1] - A press release detailing the company's results will be issued prior to the call [1] Conference Call Participation - Investors and analysts can participate in the call by dialing 888-317-6003 or the international number 412-317-6061, referencing conference ID number 0882763 [2] - The conference call will be broadcast live over the internet, and an archived version will be available until December 17, 2024 [2] Corporate Social Responsibility - Designer Brands has donated more than nine million pairs of shoes to the global non-profit Soles4Souls since 2018, demonstrating its commitment to diversity, equity, and inclusion in the footwear industry [2]

Core Viewpoint - Designer Brands Inc. (NYSE:DBI) reported disappointing Q2 2024 earnings, with a non-GAAP EPS of $0.29, missing estimates by $0.24, and revenue falling short by $44.24 million [3][6]. Financial Performance - Q2 2024 non-GAAP EPS was $0.29, down from $0.59 year-over-year [19]. - Revenue for the quarter was $772 million, a decrease of 2.6% from the previous year [18]. - Adjusted net income fell to $17.1 million from $39.4 million [18]. - Gross margins decreased by 170 basis points to 32.8% due to lower mark-ups and increased promotions [18]. - Operating expenses rose to 28.9% of sales, up from 26.9% [18]. - Interest expenses increased to $11 million from $6.9 million [18]. Market Position and Strategy - Designer Brands operates over 640 stores across the U.S. and Canada, with a focus on footwear and accessories [7]. - The company has shifted its strategy towards athletic and athleisure products, which now represent 42% of its offerings, up from 32% in 2017 [13]. - Sales of the top eight athletic brands increased over 30%, contributing to overall athletic sales growth of 16% [13]. Consumer Trends - The athleisure market is projected to reach $456 billion by 2029, with a CAGR of over 6% from 2024 to 2029 [13]. - Consumer sentiment is affected by inflation, leading to reduced spending on non-essential items [11]. Future Outlook - The company expects positive EPS growth in the second half of 2024, driven by strength in athletic and casual segments [15]. - DBI lowered its full-year earnings outlook to $0.50-$0.60 EPS, down from $0.70-$0.80, due to a slower recovery [19]. Valuation and Debt - DBI's blended price-to-earnings ratio is 8.83x, lower than its usual 12.15x, indicating potential valuation concerns [16]. - The company has a total debt of $1.28 billion against a market cap of $297.11 million, leading to a high long-term debt-to-capital ratio of 68.2% [16]. - The EV/EBITDA ratio of 17.14 is significantly higher than the sector's 10.64, indicating higher leverage [16][17].

Core Insights - Designer Brands Inc. (DBI) reported second-quarter fiscal 2024 results that fell short of Zacks Consensus Estimates for both earnings and sales, with year-over-year declines noted [1][3][12] Financial Performance - Adjusted earnings were 29 cents per share, missing the Zacks Consensus Estimate of 56 cents, and down from 59 cents in the prior year [3] - Net sales totaled $771.9 million, a decrease of 2.6% year over year, and below the Zacks Consensus Estimate of $819 million [3] - Comparable sales (comps) decreased by 1.4% year over year, compared to an expected decline of nearly 3.7% [3] Margins and Expenses - Gross profit was $252.9 million, down 7.5% from $273.4 million in the previous year, with a gross margin decrease of 170 basis points to 32.8% [4] - The decline in gross margin was attributed to lower initial markups on athletic and athleisure products and the need for promotions to clear seasonal inventory [5] - Adjusted SG&A expenses as a percentage of net sales rose to 28.9%, up 200 basis points from 26.9% in the same quarter last year, primarily due to lower sales and higher fixed costs [6] Segment Performance - U.S. Retail segment sales decreased by 2.6% year over year to $641.7 million, missing the Zacks Consensus Estimate of $652 million [7] - Canada Retail segment sales increased by 6.4% year over year to $74.8 million, but fell short of the Zacks Consensus Estimate of $86 million [7] - Brand Portfolio segment sales were $96 million, up 14% year over year, but also lagged behind the Zacks Consensus Estimate of $121 million [8] Financial Snapshot - Cash and cash equivalents were reported at $38.8 million, down from $46.2 million a year ago, with $155.1 million available for borrowings under a senior secured asset-based revolving credit facility [8] - Debt levels rose significantly to $465.7 million, compared to $331 million in the previous year [9] - Inventories increased to $642.8 million from $606.8 million year over year [9] Shareholder Returns - The company repurchased 2.7 million Class A common shares for a total cost of $18 million during the second quarter, with $69.7 million remaining for future repurchases [10] Store Updates - One store was closed in the U.S. while two were opened in Canada, resulting in a total of 499 U.S. stores and 177 Canadian stores as of August 3, 2024 [11] Guidance - The company revised its financial outlook for fiscal 2024, now expecting flat to low-single-digit sales growth, down from initial projections of low-single-digit growth [12] - Adjusted earnings per share guidance was lowered to a range of 50-60 cents, down from the previous range of 70-80 cents [12]

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 August 3, 2024 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) Ohio 31-0746639 (State or other jurisdiction of ...

Shares of the footwear fell on a disappointing earnings report. Shares of Designer Brands (DBI -14.03%) were falling today after the parent of DSW and other footwear brands posted disappointing results in its second-quarter earnings report and cut its guidance for the year. As a result, the stock was down 13.9% as of 1:10 p.m. ET on the news. Designer Brands continues to shrink In a difficult retail environment, Designer Brands said comparable sales fell 1.4%, leading to a 2.6% decline in revenue to $771.9 ...

Designer Brands Inc. (NYSE:DBI) Q2 2024 Earnings Conference Call September 11, 2024 8:30 AM ET Company Participants Doug Howe - Chief Executive Officer Jared Poff - Executive Vice President, Chief Financial Officer Dustin Hauenstein - Senior Vice President, Finance Conference Call Participants Alex Faske - William Blair Mauricio Serna - UBS Dana Telsey - Telsey Advisory Group Operator Good morning and welcome to the Designer Brands second quarter 2024 results conference call. All participants will be in li ...

Designer Brands (DBI) came out with quarterly earnings of $0.29 per share, missing the Zacks Consensus Estimate of $0.56 per share. This compares to earnings of $0.59 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -48.21%. A quarter ago, it was expected that this footwear and accessories retailer would post earnings of $0.15 per share when it actually produced earnings of $0.08, delivering a surprise of -46.67%. Over the las ...

Exhibit 99.1 Designer Brands Inc. Reports Second Quarter 2024 Financial Results Reported third consecutive quarter of sequential comparable sales improvement Impressive performance in growing athleisure category, which outpaced the market by over 4 percentage points COLUMBUS, Ohio, September 11, 2024 - Designer Brands Inc. (NYSE: DBI) (the "Company," "we," "us," "our," and "Designer Brands"), one of the world's largest designers, producers, and retailers of footwear and accessories, today announced financia ...