Financial Performance - Net sales for the first quarter of 2025 decreased by 8.0% to $686.9 million compared to the same period in 2024[4] - Total comparable sales decreased by 7.8%, with U.S. Retail segment down 7.3% and Canada Retail segment down 9.2%[17] - Gross profit decreased to $295.1 million, resulting in a gross margin of 43.0%, down from 44.2% in the previous year[4] - The reported net loss attributable to Designer Brands Inc. was $17.4 million, equating to a diluted loss per share of $0.36[4] - Operating loss for the quarter was $7.3 million, compared to an operating profit of $9.4 million in the prior year[21] - Net loss attributable to Designer Brands Inc. was $17.4 million, compared to a net income of $0.8 million in the same quarter last year[21] - Diluted earnings per share for the quarter was $(0.36), a decline from $0.01 in the prior year[21] - Adjusted operating profit (loss) for the quarter was $(0.4) million, down from $14.7 million in the same period last year[25] Cost Management - The company expects to achieve cost savings between $20 million to $30 million throughout 2025[3] Cash and Liquidity - Cash and cash equivalents totaled $46.0 million at the end of the first quarter, an increase from $43.4 million year-over-year[9] - Cash and cash equivalents increased to $46.0 million from $43.4 million year-over-year[23] Store Operations - Total number of stores decreased to 669 from 675 in the previous year, with a total square footage of 11,006 thousand[7] Guidance and Outlook - The company has withdrawn its full-year 2025 guidance due to macroeconomic uncertainty[8] Inventory Management - Inventories at the end of the first quarter were $623.6 million, slightly up from $620.5 million in the same period last year[9] Dividend Declaration - The company declared a dividend of $0.05 per share for both Class A and Class B common shares, payable on June 18, 2025[6] Asset and Liability Overview - Total assets as of May 3, 2025, were $2.09 billion, a decrease from $2.16 billion as of May 4, 2024[23] - Total liabilities increased to $1.82 billion from $1.80 billion year-over-year[23] Sales Metrics - Comparable sales performance metric is a key measurement for management, with e-commerce sales included in the calculation[28]

Core Insights - Designer Brands Inc. reported a challenging start to 2025, citing an unpredictable macro environment and declining consumer sentiment as key factors impacting performance [2] - The company has withdrawn its 2025 guidance due to ongoing economic instability and is focusing on cost-saving measures, expecting to save between $20 million to $30 million throughout the year [2][5] - The first quarter of 2025 saw a significant decline in net sales, down 8.0% to $686.9 million, with total comparable sales decreasing by 7.8% [7][11] Financial Performance - Gross profit for the first quarter decreased to $295.1 million, resulting in a gross margin of 43.0%, down from 44.2% in the previous year [7][13] - The company reported a net loss of $17.4 million, translating to a diluted loss per share of $0.36, compared to a profit of $0.01 per share in the same quarter last year [7][14] - Cash and cash equivalents increased to $46.0 million, while total debt rose to $522.9 million compared to $476.1 million a year earlier [7][15] Store Operations - As of May 3, 2025, Designer Brands operated a total of 669 stores, a decrease from 675 stores the previous year, with a total square footage of 11,006 thousand [4] - The U.S. Retail segment, which includes DSW stores, accounted for 79.3% of net sales, with a decline of 7.7% compared to the same period in 2024 [11][12] Segment Results - The U.S. Retail segment net sales were $573.2 million, down from $621.4 million, while the Canada Retail segment saw a decrease to $53.9 million from $55.5 million [11][12] - The Brand Portfolio segment reported net sales of $95.9 million, a decline of 7.9% year-over-year [11][12] Liquidity and Return to Shareholders - The company declared a dividend of $0.05 per share for both Class A and Class B common shares, payable on June 18, 2025 [3] - Total current assets amounted to $773.7 million, with current liabilities at $607.9 million, indicating a healthy liquidity position [15]

Designer Brands Inc. DBI will release its first-quarter financial results before the opening bell on Tuesday, June 10. Analysts expect the Columbus, Ohio-based company to report a quarterly loss at 6 cents per share, versus a year-ago profit of 8 cents per share. Designer Brands projects quarterly revenue of $732.82 million, compared to $746.6 million a year earlier, according to data from Benzinga Pro. Considering buying DBI stock? Here's what analysts think: On March 20, Designer Brands reported better-th ...

Core Insights - DSW has launched a partnership with Imbox Protection, introducing an innovative shoe protection service available in nearly 500 locations across the U.S. [1][8] - The Imbox system offers a fast, eco-conscious solution that protects shoes from various elements in just 60 seconds [1][5] - The service costs $8.99 and provides up to eight weeks of protection, appealing to environmentally conscious consumers [5][6] Company Overview - DSW, a Designer Brands company, aims to enhance customer value and sustainability through this partnership [6][8] - The company operates over 650 stores and is committed to providing on-trend footwear and accessories [10] - DSW has a history of supporting charitable initiatives, having donated over 11 million pairs of shoes since 2018 [10] Industry Impact - The partnership with Imbox marks a significant expansion in the North American retail landscape for both companies [6][8] - The integration of Imbox Protection into the checkout process redefines post-purchase services in footwear retail [6][8] - The service aligns with growing consumer demand for environmentally responsible solutions, reflecting a shift in retail towards sustainability [6][8]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended February 1, 2025 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 incorp ...

Group 1 - Designer Brands Inc. reported Q4 2024 results that positively surprised the market, marking the first time in over two years that the company posted positive comparable sales [1] - U.S. Retail comparable sales turned positive, indicating a potential turnaround in the company's performance [1] Group 2 - The focus of the analysis is on operational aspects and long-term earnings power of companies, rather than market-driven dynamics [1] - The investment strategy emphasizes holding companies independently of future price movements, with most calls being holds [1]

Core Viewpoint - Designer Brands reported mixed financial results for Q4 2024, with adjusted EPS beating expectations but revenue falling short, indicating challenges in revenue generation despite improved cost control [2][6]. Financial Performance - Adjusted EPS loss was $0.44, better than the expected loss of $0.49, with no change compared to Q4 2023 [3][6]. - Revenue totaled $713.6 million, below the anticipated $719 million, representing a 5.4% decline from $754.3 million in Q4 2023 [2][3]. - Gross margin improved to 39.6%, up from 38.8% in Q4 2023, reflecting effective cost management [3][6]. - Comparable sales increased by 0.5%, a recovery from a 7.3% decline in the previous year [3][6]. Strategic Focus - The company aims to enhance its Owned Brands segment, targeting it to constitute one-third of total sales by 2026, doubling from its 2021 baseline [4]. - Designer Brands is strengthening its loyalty and rewards programs, with the VIP program having 32.1 million members, contributing to 90% of retail sales [5]. - Expansion of the distribution network is underway to support both in-store and online sales, enhancing customer service and operational efficiency [5]. Segment Performance - U.S. Retail segment sales dropped by 6.9%, indicating competitive pressures and shifts in consumer behavior [7]. - Canada Retail and Brand Portfolio segments experienced growth of 7.5% and 12.3%, respectively [7]. Financial Position - Inventory levels increased to $599.8 million from $571.3 million, while cash reserves stood at $44.8 million [8]. - Debt levels rose to $491 million from $427.1 million, indicating potential financial risk [8]. Future Outlook - Designer Brands anticipates low single-digit net sales growth for fiscal 2025, with adjusted EPS guidance between $0.30 to $0.50 [9]. - The focus remains on strategic initiatives, particularly enhancing Owned Brands and expanding the customer loyalty program [9].

Financial Data and Key Metrics Changes - In Q4 2024, total sales declined by 5% year-over-year, but comparable sales increased by 1% when excluding the 53rd week from the previous year [7][40] - For the full year, total company sales decreased by approximately 2%, with comparable sales down 1.7% [7][40] - Adjusted EPS for the full year was $0.27, at the upper end of the revised guidance range of $0.10 to $0.30 [8][49] - Consolidated gross profit margin for Q4 was 39.6%, an increase of 80 basis points year-over-year, while full-year gross margin was 42.7%, a decrease of 40 basis points [44][45] Business Line Data and Key Metrics Changes - U.S. Retail comps were up 1% in Q4, marking a return to positive comps for the first time since Q3 2022, driven by strength in athletic, women's dress, and luxury accessories [13][41] - Canada Retail segment saw Q4 comps increase by 5%, with strong performance in athletic and kids categories [14][41] - Brand Portfolio segment sales increased by approximately 12% in Q4 and roughly 14% for the full year, achieving operating profitability for the first time [16][42] Market Data and Key Metrics Changes - DSW's sales growth outpaced the footwear market in Q4, resulting in a 10 basis point gain in market share [13] - Top eight brands saw a 25% increase in sales on a full-year basis, contributing significantly to overall performance [10][66] - Topo Athletic brand sales grew nearly 80% in 2024, indicating strong market demand [31][43] Company Strategy and Development Direction - The company is focusing on a customer-first approach, leveraging insights and analytics to refine brand identity and enhance marketing effectiveness [20][22] - Plans to enhance the omnichannel customer experience and expand store footprint for the first time since 2019 [23][24] - Emphasis on revitalizing product assortment through data-driven strategies to improve inventory availability and productivity [25][26] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious consumer environment due to inflation and rising prices, impacting discretionary spending [35][59] - Guidance for 2025 anticipates low single-digit sales growth, with expectations for gradual improvement throughout the year [53][54] - The company aims to return to consistent top and bottom line growth, with a focus on driving profitable growth and evaluating expenses [56][60] Other Important Information - The company returned $79 million to shareholders through dividends and share repurchases in 2024 [50][51] - Total debt outstanding was $491 million at the end of the year, with total liquidity of $172.1 million [52] Q&A Session Summary Question: Can you provide more details on the fourth quarter, particularly regarding athleisure growth and Nike's performance? - Management highlighted significant growth in athleisure, particularly among the top eight brands, which saw a 25% increase in sales [66] - They noted a slower start to Q1 compared to expectations, influenced by macroeconomic factors [67][68] Question: What are the expectations for gross margin and SG&A dollar growth? - Management indicated that promotional activity is expected to provide leverage to gross margin, with SG&A expected to increase by about $50 million due to new initiatives and annualizing acquisitions [72][74]

Financial Performance - Fourth quarter net sales decreased by 5.4% to $713.6 million, with total comparable sales increasing by 0.5%[3] - Full year net sales decreased by 2.1% to $3.0 billion, with total comparable sales decreasing by 1.7%[7] - The reported net loss for the full year was $38.2 million, equating to a loss per diluted share of $0.80[7] - Consolidated net sales for the three months ended August 3, 2024, were $771,900,000, a decrease from $792,217,000 for the same period last year, representing a decline of 2.9%[23] - Consolidated net sales for the six months ended August 3, 2024, were $1,518,496,000, slightly down from $1,534,299,000 in the same period last year, a decrease of 1.0%[23] - Consolidated net sales for the three months ended November 2, 2024, were $777,194 thousand, a decrease of 1.4% compared to $786,329 thousand for the same period in 2023[24] - For the nine months ended November 2, 2024, consolidated net sales totaled $2,295,690 thousand, a slight decrease from $2,320,628 thousand in the same period last year[24] - Net sales for the three months ended February 1, 2025, were $713,572, a decrease of 5.4% compared to $754,348 for the same period in 2024[25] Gross Profit and Margins - Gross profit for the fourth quarter decreased to $282.6 million, resulting in a gross margin of 39.6%[3] - Consolidated gross profit for the three months ended February 1, 2025, was $282,583, a decrease of 3.4% compared to $292,591 for the same period in 2024[17] - Gross profit for the consolidated segment was $252,914,000, accounting for 32.8% of net sales, compared to $273,387,000 or 34.5% of net sales in the previous year[23] - Gross profit for the consolidated segment for six months was $497,983,000, which is 32.8% of net sales, compared to $511,126,000 or 33.3% in the previous year[23] - Gross profit margin for the consolidated segment improved to 43.0% for the three months ended November 2, 2024, compared to 44.0% in the same period last year[24] - Gross profit for the twelve months ended February 1, 2025, was $1,285,958, representing a gross margin of 42.7%, compared to $1,323,995 and a gross margin of 43.1% for the previous year[27] Operating Expenses and Losses - Operating expenses for the consolidated segment were $226,896,000, which is 29.4% of net sales, compared to $214,530,000 or 27.1% of net sales last year, indicating an increase in operating expenses as a percentage of sales[23] - Operating expenses for the six months were $465,447,000, representing 30.7% of net sales, compared to $434,649,000 or 28.3% last year, indicating a rise in operating expenses[23] - Operating expenses for the three months ended February 1, 2025, were $311,983, which is 43.7% of net sales, compared to $326,841 or 43.3% of net sales for the same period in 2024[25] - The company reported operating expenses of $1,245,834,000 for the twelve months ended February 1, 2025, slightly down from $1,256,150,000 in the previous year, showing a decrease of about 0.8%[31] Segment Performance - The U.S. Retail segment reported net sales of $587.5 million, a decrease of 6.9% compared to the previous year[16] - The Brand Portfolio segment saw a 12.3% increase in net sales, totaling $87.3 million for the fourth quarter[16] - U.S. Retail segment gross profit decreased by 3.8% to $238,490, while its percentage of net sales increased to 40.6% from 39.3%[17] - Canada Retail segment gross profit increased by 6.0% to $27,388, with a slight decrease in its percentage of net sales to 39.6%[17] - U.S. Retail segment net sales were $641,694,000, down from $658,542,000 year-over-year, reflecting a decrease of 2.7%[23] - Canada Retail segment net sales increased to $74,797,000 from $70,266,000, marking a growth of 6.3% year-over-year[23] - U.S. Retail segment net sales were $615,495 thousand, a decrease of 2.5% from $631,610 thousand in the same period last year[24] - Canada Retail segment net sales increased to $83,504 thousand, up 10.4% from $75,610 thousand in the same period last year[24] Future Outlook - For fiscal year 2025, the company anticipates low-single digit net sales growth and diluted EPS guidance of $0.30 to $0.50[9] - The company plans to include e-commerce sales from the Brand Portfolio segment in its comparable sales metric starting in 2025, enhancing the measurement of retail performance[34] - The company anticipates that stores added from the Rubino acquisition will contribute to comparable sales starting in the second quarter of 2025, indicating a strategy for market expansion[34] Debt and Assets - Cash and cash equivalents totaled $44.8 million at the end of 2024, down from $49.2 million at the end of 2023[7] - Long-term debt increased to $484,285 as of February 1, 2025, compared to $420,344 as of February 3, 2024[29] - Total current assets decreased to $734,824 as of February 1, 2025, from $777,432 as of February 3, 2024[29] - Total liabilities decreased slightly to $1,727,449 as of February 1, 2025, from $1,713,724 as of February 3, 2024[29] Adjusted Metrics - The adjusted diluted earnings per share for the twelve months ended February 1, 2025, was $0.27, down from $0.68 in the prior year, indicating a decrease of approximately 60.3%[31] - Total non-GAAP adjustments for the twelve months ended February 1, 2025, amounted to $25,014,000 after tax, compared to $13,969,000 in the previous year, representing an increase of approximately 79.5%[31] - The company incurred restructuring and integration costs of $11,843,000 for the twelve months ended February 1, 2025, compared to $6,378,000 in the previous year, indicating an increase of approximately 85.5%[31] - The company incurred impairment charges of $580 for the three months ended February 1, 2025, compared to $4,185 for the same period in 2024[27] Management and Corporate Actions - The company repurchased 10.3 million Class A common shares at a cost of $68.6 million during 2024[7] - CEO transition costs for the twelve months ended February 1, 2025, were $4,352,000, down from $4,352,000 in the previous year, reflecting a reduction in transition-related expenses[31] - The company recognized intersegment gross profit of $9,717 for the three months ended February 1, 2025, compared to $6,728 in the same period last year[19] - The elimination of net sales recognized by the Brand Portfolio segment for the twelve months ended February 1, 2025, was $138,743, up from $72,078 in the previous year[20] - Corporate/Eliminations segment reported an operating loss of $217,734 for the twelve months ended February 1, 2025, compared to a loss of $187,183 in the previous year, indicating a worsening performance[20]

Core Insights - Designer Brands Inc. reported financial results for the year ended February 1, 2025, with a focus on strategic initiatives that led to positive comparable sales for the first time in nine quarters [2][5] - The company anticipates profitable growth in fiscal 2025, projecting an increase in earnings per share (EPS) compared to 2024 adjusted results [2][4] Financial Performance - For the fourth quarter of 2024, net sales decreased by 5.4% to $713.6 million, while total comparable sales increased by 0.5% [5][11] - Gross profit for the fourth quarter was $282.6 million, with a gross margin of 39.6%, compared to $292.6 million and 38.8% in the previous year [5][11] - The reported net loss attributable to Designer Brands Inc. was $38.2 million, or a loss per diluted share of $0.80, while the adjusted net loss was $21.3 million, or $0.44 loss per diluted share [5][11] Store Count and Operations - As of February 1, 2025, the total number of stores was 669, with 494 in the U.S. and 175 in Canada, reflecting a slight reduction in store count [3][11] - The company closed two stores in the U.S. and four in Canada during the fourth quarter of 2024 [3] 2025 Financial Outlook - The company has provided guidance for 2025, expecting low-single-digit net sales growth and diluted EPS in the range of $0.30 to $0.50 [4] - The ongoing business transformation is expected to drive stability and growth, despite short-term consumer pressures from inflation and rising prices [2][4] Segment Performance - In the fourth quarter, U.S. Retail segment net sales were $587.5 million, down 6.9% from the previous year, while Canada Retail segment net sales increased by 7.5% to $69.2 million [11][12] - The Brand Portfolio segment saw a 12.3% increase in net sales, reaching $87.3 million [11][12] Liquidity and Return to Shareholders - Cash and cash equivalents totaled $44.8 million at the end of 2024, down from $49.2 million at the end of 2023, with total debt increasing to $491.0 million [5][11] - The company repurchased 10.3 million Class A common shares for $68.6 million during 2024, with $19.7 million remaining for future repurchases [5][11]