Core Insights - Designer Brands Inc. reported a sequential improvement in comparable sales by 280 basis points from the first quarter of 2025, indicating the effectiveness of its operational strategies [2] - The company achieved a positive diluted earnings per share (EPS) of $0.22 and an adjusted diluted EPS of $0.34, reflecting growth compared to the same period last year [1][9] - Despite a slight uptick in consumer sentiment, macroeconomic volatility continues to pose challenges, leading the company to refrain from reinstating full-year 2025 guidance [4] Financial Performance - Net sales decreased by 4.2% to $739.8 million, with total comparable sales down by 5.0% [9][11] - Gross profit fell to $322.9 million, resulting in a gross margin of 43.7%, down from 44.0% the previous year [9][12] - Reported net income attributable to Designer Brands was $10.8 million, with adjusted net income at $16.7 million [9][14] Liquidity and Debt - Cash and cash equivalents at the end of the second quarter of 2025 totaled $44.9 million, an increase from $38.8 million year-over-year [9] - Total debt rose to $516.3 million, compared to $465.7 million at the same time last year [9] Store Count and Operations - The total number of stores decreased to 668, with a total square footage of 10,962 thousand [3] - The U.S. Retail segment, which includes DSW stores, accounted for 80.5% of segment net sales, while the Canada Retail segment contributed 9.9% [11] Segment Results - U.S. Retail segment net sales were $610.9 million, down 4.8% from the previous year [11] - The Canada Retail segment saw a slight increase in net sales by 0.4% to $75.1 million [11] - The Brand Portfolio segment experienced a significant decline in net sales by 23.8%, totaling $73.2 million [11]

Earnings Report - Designer Brands Inc. is set to release its Q2 earnings results on September 9, with expected earnings of 22 cents per share, a decrease from 29 cents per share in the same period last year [1] - The company projects quarterly revenue of $737.85 million, down from $771.9 million a year earlier [1] Q1 Performance and Guidance - In Q1, Designer Brands reported worse-than-expected financial results and withdrew its FY25 guidance due to macroeconomic uncertainty [2] - Following the Q1 report, Designer Brands shares increased by 11.1%, closing at $4.41 [2] Analyst Ratings - UBS analyst Jay Sole maintained a Neutral rating and raised the price target from $3 to $4 on September 4, 2025, with an accuracy rate of 74% [7] - Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating with a price target of $4 on September 3, 2025, with an accuracy rate of 64% [7]

Core Insights - Designer Brands Inc. (DBI) is a significant player in the global footwear and accessories market, with quarterly earnings set to be released on September 9, 2025, predicting an EPS of $0.22 and revenue of approximately $736.2 million [1][4] Valuation Metrics - The price-to-sales ratio is notably low at 0.07, indicating that the stock may be undervalued relative to its sales, presenting an opportunity for investors [2][4] - The enterprise value to sales ratio stands at 0.51, providing insight into how the company's revenue compares to its overall valuation [2] - The enterprise value to operating cash flow ratio is 18.42, indicating how many times the operating cash flow can cover the enterprise value [2] Financial Health - DBI has a high debt-to-equity ratio of 5.00, reflecting a significant reliance on debt financing [3][4] - The current ratio of 1.27 suggests that the company maintains a reasonable level of liquidity to meet its short-term obligations, indicating financial stability [3][4]

Group 1 - Designer Brands Inc. will release its second quarter 2025 earnings on September 9, 2025, with a conference call scheduled for 8:30 am E.T. to discuss the results [1] - Investors and analysts can participate in the call by dialing specific numbers and referencing the conference ID number 3316589 [2] - An archived version of the conference call will be available until September 23, 2025, for those unable to listen live [2] Group 2 - Designer Brands is one of the largest designers, producers, and retailers of footwear and accessories, with a diverse portfolio of brands including Topo Athletic, Keds, and Jessica Simpson [3] - The company operates a billion-dollar digital commerce business and has over 650 retail locations in North America, including DSW Designer Shoe Warehouse [3] - Designer Brands has donated more than eleven million pairs of shoes to the global non-profit Soles4Souls since 2018, reflecting its commitment to corporate social responsibility [3]

Financial Data and Key Metrics Changes - EBITDA increased by 5.3% to $143,800,000 compared to the same period in 2024 [2] - Funds from operations (FFO) rose by 13.8% to $84,100,000 [2] - Net profit after tax was reported at $43,100,000, a 17% increase from the prior comparative period [12] Business Line Data and Key Metrics Changes - Terminal infrastructure charge (TIC) increased to $3.72 per ton, up 3.6% from the previous year [2][8] - Handling costs are fully recharged to customers, having no impact on EBITDA [12] Market Data and Key Metrics Changes - The terminal services 21 mines owned by 11 customers across the Central Bowen Basin, Australia's premier metallurgical coal region [1] - The terminal is the largest metallurgical coal export terminal globally, accounting for over 14% of global seaborne metallurgical coal exports [1] Company Strategy and Development Direction - The company is focused on organic growth opportunities and has a capital investment program of approximately $405,500,000, with $122,000,000 already invested [20][24] - The ADEX project aims to expand terminal capacity, with potential for incremental capacity increases based on demand [25][26] - The company is exploring optimization initiatives to enhance terminal capacity utilization without significant capital expenditure [19] Management's Comments on Operating Environment and Future Outlook - Management noted that the current coal market is influenced by global geopolitical factors, which may delay customer engagement on expansion projects [34] - The company is optimistic about future revenue growth driven by ongoing projects and optimization initiatives [19][30] Other Important Information - The company maintains an investment-grade balance sheet with stable credit ratings from S&P and Fitch [13] - DBI has $2,300,000,000 in total debt facilities, with $1,800,000,000 drawn as of June 30, 2025 [13][15] Q&A Session Summary Question: Capital allocation review and timing of ADEX expansion - Management indicated that the ADEX expansion has been delayed due to market conditions and customer development planning, with expectations for customer engagement in 2026 [34] Question: Optimization benefits and impact on ADEX - Management clarified that optimization initiatives will provide incremental value but will not significantly impact the need for ADEX expansion [36] Question: Rail network capacity for ADEX expansion - Management believes the rail network has sufficient capacity to support ADEX expansion without major upgrades, although some enhancements may be needed [44] Question: Breakdown of capital expenditure - Most capital expenditure was spent on the ship loader and reclaimer, totaling approximately $280,000,000 [46] Question: Interest costs expectations - Interest costs are expected to rise due to increased capital spending, but capitalized interest will not significantly impact the P&L until projects are commissioned [48][49] Question: Future kneecap opportunities - Management discussed potential projects, including a new ship loader and gallery wrapping, with a total estimated cost of around $400,000,000 over the next several years [52][54] Question: Criteria for future acquisitions - Management indicated that acquisitions below $100,000,000 may not be pursued unless they are adjacent to current operations, while larger opportunities would be considered based on familiarity and alignment with existing business [56][58] Question: Support from shareholders for large acquisitions - Management expressed confidence in shareholder support for value-accretive opportunities, noting improved conditions in debt markets for coal-related assets [60][61]

Financial Data and Key Metrics Changes - EBITDA increased by 5.3% to $143,800,000 compared to the same period in 2024 [3] - Funds from operations (FFO) rose by 13.8% to $84,100,000 [3] - Net profit after tax was reported at $43,100,000, a 17% increase from the prior comparative period [13] Business Line Data and Key Metrics Changes - The terminal's capacity remains fully contracted at 84,200,000 tons per annum, with all customers under take-or-pay contracts [2][5] - The terminal infrastructure charge (TIC) increased to $3.72 per ton, reflecting a 3.6% uplift compared to the previous year [3][9] - General and administrative expenses decreased by 9.2% compared to 2024, demonstrating ongoing cost management [10] Market Data and Key Metrics Changes - The terminal services 21 mines owned by 11 customers across the Central Bowen Basin, Australia's premier metallurgical coal region [2] - The terminal represents over 14% of global seaborne metallurgical coal exports [2] Company Strategy and Development Direction - The company is focused on organic growth opportunities, including optimization initiatives and a committed capital expenditure program of $405,500,000 [21][22] - The ADEX project is being considered for future expansion, which will involve significant capital investment [23][27] - The company aims to maintain a payout ratio of 60% to 80% of FFO while targeting distribution per security (DPS) growth of 3% to 7% per annum [11] Management's Comments on Operating Environment and Future Outlook - Management noted that the current coal market is influenced by global geopolitical factors, which may delay customer engagement on expansion projects [35] - The company is optimistic about future revenue growth driven by new revenue initiatives and the implementation of approved projects [31] Other Important Information - The company has received a citizenship level safety rating from Centus, the highest rating issued, indicating strong operational safety [4] - DBI's debt level remains stable, with a total of $2,300,000,000 in debt facilities, of which $1,800,000,000 was drawn as of June 30, 2025 [14][15] Q&A Session Summary Question: Can you provide more time frames on the ADEX expansion? - Management indicated that the ADEX expansion has been delayed due to the current coal market and approvals environment, with customer engagement expected in 2026 [35] Question: What are the components within the supply chain that would need to be expanded for ADEX? - Management believes there is sufficient capacity in the rail network to support an ADEX expansion without significant expansion, but some enhancements may be needed [44] Question: Can you provide a breakdown of the $60 million spent in CapEx? - Most of the CapEx was spent on the ship loader and reclaimer, with approximately $40,000,000 to $50,000,000 allocated to these projects [47] Question: What is the expectation for interest costs for the full year? - Interest costs are expected to be higher due to increased capital spending, but capitalized interest will not significantly impact the P&L until projects are commissioned [48][49] Question: Can you provide more details on the kneecap opportunities? - Management is assessing the need for a new ship loader and potential gallery wrapping projects, with significant capital expected to be spent over the next few years [52][54] Question: What is the scale of potential acquisition opportunities? - Management indicated that opportunities below $100,000,000 may not be pursued unless they are adjacent and easy to execute, while larger opportunities would be considered based on alignment with existing business [56] Question: What is the company's stance on working as part of a consortium? - Management is open to working with partners if it reduces execution risk and aligns with business objectives [62]

For personal use only Investor Presentation 2025 Half Year Financial Results For personal use only Presenters Michael Riches Chief Executive Officer Stephanie Commons Chief Financial Officer 01 Overview 02 H1-25 Highlights 03 Stable and predictable business model 04 Financial Performance 05 Growth optionality 06 Strategic Priorities 07 Appendices Investor Presentation | August 2025 2 Format photo Overview For personal use only 3 4 For personal use only DBI through its foundation asset, the Dalrymple Bay Ter ...

Group 1 - Pomerantz LLP is investigating claims on behalf of investors of Designer Brands Inc. regarding potential securities fraud or unlawful business practices by the company and its officers or directors [1] - On June 10, 2025, Designer Brands announced the withdrawal of its 2025 guidance due to a soft start to the year, an unpredictable macro environment, and deteriorating consumer sentiment [3] - Following the announcement, Designer Brands' stock price fell by $0.68 per share, or 18.23%, closing at $3.05 per share on the same day [3] Group 2 - Designer Brands is focusing on amplifying value in retail channels, preserving margins, controlling costs, and mitigating tariff impacts in response to market volatility [3]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Designer Brands Inc. due to allegations of materially misleading business information issued to the public [1]. Group 1: Investigation and Legal Action - Shareholders who purchased Designer Brands securities may be entitled to compensation through a class action lawsuit without any out-of-pocket fees [2]. - The Rosen Law Firm is preparing a class action to seek recovery of investor losses [2]. Group 2: Financial Performance and Market Reaction - Designer Brands reported a soft start to 2025, citing an unpredictable macro environment and deteriorating consumer sentiment, leading to the withdrawal of its 2025 guidance [3]. - Following the announcement of these financial results, Designer Brands' stock fell by 18.2% on June 10, 2025 [3]. Group 3: Rosen Law Firm's Credentials - The Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements and being recognized as a leader in the field [4]. - In 2019, the firm secured over $438 million for investors, and it has consistently ranked among the top firms for securities class action settlements since 2013 [4].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Designer Brands Inc. due to allegations of materially misleading business information issued by the company [1] Group 1: Company Performance - Designer Brands reported a soft start to 2025, citing an unpredictable macro environment and deteriorating consumer sentiment [3] - The company decided to withdraw its 2025 guidance amid persistent instability and pressure on consumer discretionary spending [3] - Following the announcement of these results, Designer Brands' stock fell by 18.2% on June 10, 2025 [3] Group 2: Legal Action - Shareholders who purchased Designer Brands securities may be entitled to compensation through a class action lawsuit without any out-of-pocket fees [2] - The Rosen Law Firm is preparing a class action to seek recovery of investor losses [2] - Interested investors can join the prospective class action by submitting a form or contacting the firm directly [2] Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest settlement against a Chinese company at the time [4] - The firm has been ranked in the top 4 for securities class action settlements since 2013 and recovered hundreds of millions of dollars for investors [4] - In 2019, the firm secured over $438 million for investors, showcasing its effectiveness in litigation [4]