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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 ...

Designer Brands Inc. (NYSE:DBI) Q3 2023 Earnings Conference Call December 5, 2023 8:30 AM ET Company Participants Ashley Firlan - Vice President at Edelman Smithfield Doug Howe - Chief Executive Officer Laura Denk - President of DSW Jared Poff - Chief Financial Officer and Chief Administrative Officer Conference Call Participants Gabriella Carbone - Deutsche Bank AG Jay Sole - UBS Operator Good morning, and welcome to the Designer Brands Third Quarter 2023 Earnings Conference Call. All participants will be ...

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 ...

Designer Brands Inc. (NYSE:DBI) Q1 2023 Earnings Call Transcript June 8, 2023 8:30 AM ET Company Participants Justin Fischer - Director of Investor Relations Doug Howe - Chief Executive Officer Jared Poff - Executive Vice President & Chief Financial Officer Conference Call Participants Jay Sole - UBS Operator Good morning, and welcome to the Designer Brands Inc. First Quarter 2023 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be a ...

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 ...

Financial Data and Key Metrics Changes - For the full year, sales increased by 3.7% to $3.3 billion compared to 2021, while fourth-quarter sales decreased by 7.5% to $760.5 million due to a pressured consumer environment [22][24] - Adjusted EPS for the full year was $1.85, landing at the top of the guidance provided at the start of the year, while fourth-quarter adjusted net income was $4.7 million or $0.07 of diluted EPS compared to $0.15 last year [47][50] - Gross margin for the full year was 32.6%, a decrease of 80 basis points from the prior year, but still structurally more robust than pre-pandemic levels [49][50] Business Line Data and Key Metrics Changes - Clearance sales at DSW were up 2%, while regular price selling was down 10%, indicating a shift in consumer behavior towards value [13] - The company's own brands grew by 32% for the year, with direct-to-consumer (DTC) sales up 35% [22][45] - The external wholesale business was down 9% during the fourth quarter, but up 24% for the year [23] Market Data and Key Metrics Changes - U.S. retail comps for the fourth quarter were down 8.1%, driven by a constrained consumer, while Canada posted comps of 15.9% for the quarter [48][23] - The company experienced strong online growth, with vincecamuto.com comps up 34.5% and tenkmuto.com comps up 44.4% for the quarter [22][23] Company Strategy and Development Direction - The company aims to increase its penetration of owned brands to nearly one-third of total sales by 2026, with current penetration at 24% [18][45] - Recent acquisitions, including Keds and Topo Athletic, support the strategy to become a leading brand builder and expand the product portfolio [14][41] - The company is focusing on maintaining strong partnerships with national brands while aggressively growing its own brands [40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing pressure from inflation and a looming recession, leading to cautious consumer spending [13][19] - The company expects a modest return to growth in Q4 2023, with sales anticipated to be down in the mid-single digits for the first half of the year [26][51] - Management remains optimistic about the long-term growth potential, anticipating a recovery in the second half of the year [46][51] Other Important Information - The company ended the quarter with $58.8 million in cash and total liquidity of $302.7 million [25] - The anticipated future expansion with Hush Puppies will allow the company to operate in the comfort footwear space, a significant growth area [15] Q&A Session Summary Question: What are the expectations for sales and earnings in 2023? - The company is planning for sales and earnings to be down for the year due to continued consumer pressure, but believes these trends are temporary [19][29] Question: How is the company managing inventory levels? - The company has managed its inventory position better than most peers, ending the fourth quarter with inventories of $605.7 million, a notable improvement from earlier in the year [50][46] Question: What impact do the recent acquisitions have on profitability? - The company anticipates no material impact to profitability from recent acquisitions in the current year due to integration costs, with expectations for profitability in 2024 [28][54]

Business Segments and Operations - Designer Brands Inc. operates in three reportable segments: U.S. Retail, Canada Retail, and Brand Portfolio, with the U.S. Retail segment generating revenue through DSW stores and e-commerce, and the Brand Portfolio segment earning revenue from wholesale and direct-to-consumer sales[13] - The company operates three reportable segments: U.S. Retail, Canada Retail, and Brand Portfolio, with e-commerce platforms supporting omni-channel capabilities[13][16] - The company's e-commerce platforms, including www.dsw.com and www.dsw.ca, offer omni-channel capabilities such as Buy Online Pick Up in Store and Curbside Pickup[16] - The company's inventory management strategy focuses on meeting consumer demand while improving efficiency through enhanced systems and processes[22] - The company sources products from third-party manufacturers in China and Brazil, with inventory shipped directly from factories to the East Coast Logistics Center for distribution[26] - The company sources products from third-party manufacturers in China and Brazil, with strict quality and compliance standards[26][27] - The company's fiscal year 2023 includes an additional week, resulting in a 53-week fiscal year[14] Owned Brands and Growth Strategy - The company aims to double net sales from Owned Brands by 2026, targeting approximately one-third of total net sales from Owned Brands, while maintaining national brand sales[17] - Company aims to double net sales from Owned Brands by 2026, targeting one-third of total net sales from Owned Brands[71] - Owned Brands accounted for 8% of total merchandise purchases in 2022, with a long-term goal to reach approximately one-third of total net sales by 2026[18][17] - The top three national brand vendors contributed 22% of total merchandise purchases in 2022[18] - In 2022, 8% of purchases were from Owned Brands, while the top three national brand vendors accounted for 22% of purchases[18] Loyalty Programs and Customer Engagement - In 2022, 89% of retail segments' net sales were generated from VIP loyalty program members, with 32.1 million members enrolled, up from 28.2 million in 2021[20] - The company's VIP rewards programs drive higher-than-average customer spend, with loyalty members accounting for 89% of retail segments' net sales in 2022[19] - Loyalty programs generated 89% of combined U.S. and Canada Retail segments' net sales in 2022, with over 32 million members enrolled as of January 28, 2023[81] - The company's VIP loyalty program had 32.1 million members at the end of fiscal year 2022, generating 89% of retail segments' net sales[20] - Company relies on customer loyalty programs and marketing to drive traffic, with loyalty members contributing significantly to sales[81] - Company relies on customer loyalty programs and marketing to drive traffic, with loyalty members accounting for 89% of U.S. and Canada Retail net sales in 2022[81] Acquisitions and Investments - Designer Brands acquired a 33.3% ownership interest in Le Tigre for $8.2 million in July 2022, securing exclusive rights to design, source, and sell Le Tigre branded footwear[25] - The company acquired a 79.4% ownership interest in Topo Athletic LLC for $19.1 million on December 13, 2022[29] - The company acquired the Keds business for $123.3 million on February 4, 2023, and will include its results in the Brand Portfolio segment starting Q1 2023[30] - The company acquired a 79.4% ownership interest in Topo in Q4 2022 and the Keds business in Q1 2023[69] - The company holds a 40% interest in ABG-Camuto, which licenses trademarks for footwear and handbags with six years remaining on the initial license term[51] Supply Chain and Manufacturing - The Brand Portfolio segment sourced 76% of its merchandise units from China in 2022, up from 75% in 2021[28] - 76% of the products in the Brand Portfolio segment were sourced from China in 2022[59] - Three key third-party vendors supplied approximately 22% of the company's retail merchandise in 2022, with no single vendor providing more than 10%[63] - The COVID-19 pandemic has caused disruptions in global supply chains, including temporary factory closures and increased freight costs[58] - The company faces risks from international trade, including COVID-19, political instability, shipping cost increases, and transportation delays, which could disrupt operations and increase costs[88] - Reliance on manufacturers outside North America, such as China and Vietnam, exposes the company to risks of intellectual property theft and counterfeit products[89] - Reliance on manufacturers in China, Vietnam, and Brazil exposes the company to risks of intellectual property theft and counterfeit product distribution[89] Financial Performance and Risks - In 2022, the company experienced a decline in gross profit as a percentage of net sales due to inflationary pressures and a promotional retail environment[56] - The company faces risks from macroeconomic conditions, including inflationary pressures, rising interest rates, and potential recession impacts[55] - Net sales in the fall season of 2022 were slightly lower than the spring season due to global economic conditions and unseasonably warm weather[52] - The company's distribution systems are vulnerable to disruptions, which could lead to delays in product delivery and impact operations[64] - The CEO transition in 2023 may create uncertainty and disrupt business operations[66] - The company's CEO transition is planned for April 1, 2023, with potential risks to business continuity and institutional knowledge[66] Technology and Cybersecurity - Company is implementing a new ERP system, which may lead to operational disruptions, data loss, or increased costs[75] - IT systems are critical for operations, and disruptions could impact e-commerce, distribution centers, and merchandising teams[73] - E-commerce operations face risks such as IT infrastructure failures, credit card fraud, and information security breaches[74] - Cybersecurity risks include potential data breaches, ransomware attacks, and unauthorized access to sensitive information[77][78] - Rapid technological changes and the need for mobile-optimized platforms pose challenges, with significant resources required to adapt to evolving devices and operating systems[91][92] - Upgrading technologies and business applications requires substantial investments, and failure to adapt could harm customer growth and financial performance[93] - The company depends on interoperability with mobile operating systems like iOS and Android, and changes in their policies could negatively impact mobile app functionality[94] - Compliance with stringent and evolving privacy laws, such as the CCPA and CPRA, poses risks of fines, penalties, and reputational damage[95][96] - Compliance with stringent privacy laws, such as CCPA and CPRA, could result in fines, penalties, and litigation if violated[95][96] Corporate Social Responsibility and Sustainability - In 2022, the company donated 1.6 million pairs of shoes to Soles4Souls, totaling over 7 million pairs since 2018[43] - The company invested $2.0 million in 2022 to advance DE&I through a partnership with Pensole and JEMS by Pensole, the first Black-owned footwear factory in the U.S.[46] - The company's associates collected and donated over 74,000 meals during the 2022 holiday season to address food insecurity[43] - The company's associates collected and packed over 74,000 meals during the 2022 holiday season to address food insecurity[43] - Corporate social responsibility (CSR) and sustainability initiatives are critical to brand value, with risks including increased costs and regulatory pressures[84] - Climate change-related regulations and extreme weather events could increase costs and disrupt supply chains, impacting business operations[98] - Climate change-related regulations and extreme weather events could impact supply chains, facilities, and consumer buying patterns[98] Workforce and Employee Benefits - As of January 28, 2023, the company employed approximately 14,000 people worldwide, with 12,000 in the U.S.[34] - As of January 28, 2023, 79% of U.S. associates self-identified as female, and 55% self-identified as people of color[45] - Nearly 79% of U.S. associates self-identified as female, and over 55% as people of color as of January 28, 2023[45] - The company provided up to $4,000 per year for medical access travel benefits for associates and dependents in 2022[40] - The company provided up to $4,000 per year for medical access travel benefits for eligible associates in 2022[40] - In 2022, 11,500 associates completed approximately 100,000 learning experiences through the company's online learning platform[41] Competition and Market Risks - Footwear market competition is intense, with competitors influencing pricing, promotions, and marketing strategies[86] - E-commerce competition has increased due to improved user experience, low shipping fees, faster delivery, and favorable return policies, with suppliers launching their own platforms to compete directly[87] - E-commerce competition has intensified due to improved user experience, low shipping fees, faster delivery, and favorable return policies, with suppliers launching their own platforms to compete directly[87] - The company's trademarks and service marks, including DSW and Vince Camuto, are critical to its brand recognition and value[51] - Licensing agreements for key Owned Brands require minimum royalty payments, and failure to meet sales targets could result in additional costs[83] - Licensing agreements for key Owned Brands (e.g., Vince Camuto, Jessica Simpson) require minimum royalty payments, and failure to meet sales targets could result in termination or additional costs[83] International Operations and Trade Risks - International operations in China, Canada, and Brazil are subject to political, economic, and regulatory risks, including currency fluctuations and compliance challenges[90] - International operations in China, Canada, and Brazil are subject to political, economic, and regulatory risks, including currency fluctuations and tax law changes[90] - The company's business is subject to complex trade and customs laws, including tariffs and import restrictions, which could adversely affect operations[50] - The company faces risks from international trade, including COVID-19, political instability, shipping cost increases, and compliance with foreign laws, which could disrupt operations and increase costs[88] Corporate Governance and Shareholder Influence - The Schottenstein Affiliates control approximately 58% of the company's voting power, potentially influencing shareholder decisions and corporate governance[103] - ABL Revolver restricts certain financial activities, including asset sales, acquisitions, and stock repurchases, with a fixed charge coverage ratio covenant[85] - ABL Revolver credit facility has restrictions, including a fixed charge coverage ratio covenant of not less than 1:1 when availability is below $47.3 million or 10% of the maximum credit amount[85]