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referencing conference ID number 0882763 [2] - The conference call will be broadcast live over the internet, and an archived version will be available until December 17, 2024 [2] Corporate Social Responsibility - Designer Brands has donated more than nine million pairs of shoes to the global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 ...

Core Viewpoint - Designer Brands experienced a significant decline in stock price following a disappointing second-quarter earnings report and a reduction in guidance for the year [1][4]. Financial Performance - Comparable sales decreased by 1.4%, leading to a 2.6% drop in revenue to $771.9 million, which was below the consensus estimate of $816.1 million [2]. - Gross margin fell from 34.5% to 32.8%, primarily due to weakness in the U.S. retail segment [2]. - Operating expenses increased by 6% to $226.9 million [2]. - Adjusted earnings per share (EPS) dropped from $0.59 to $0.29, missing the estimate of $0.53 [3]. Market Segments - CEO Doug Howe noted challenges in categories such as dress and seasonal footwear, but mentioned an 8% increase in athleisure sales during the quarter [3]. - The U.S. segment outperformed the overall footwear sector by one percentage point [3]. Future Outlook - The company revised its full-year revenue growth forecast to flat to low-single digits, down from an earlier expectation of low-single digits [4]. - Adjusted EPS guidance was cut from a range of $0.70-$0.80 to $0.50-$0.60 [4]. - Despite a forward price-to-earnings ratio of less than 10, the stock is considered not investable until revenue and earnings growth can be restored [5].

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 ...

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, Sept. 11, 2024 /PRNewswire/ -- 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 financial results for the second quarter ended August 3, 2024. "This quarter, ...

COLUMBUS, Ohio, Aug. 28, 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 second quarter 2024 earnings on September 11, 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 888-317-6 ...