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 May 2, 2020 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 001-32545 DESIGNER BRANDS INC. (Exact name of registrant as specified in its charter) Ohio 31-0746639 (State or other jurisdiction of i ...

Designer Brands Inc. (NYSE:DBI) Q1 2020 Earnings Conference Call June 18, 2020 8:30 AM ET Company Participants Stacy Turnof - IR, Edelman Roger Rawlins - CEO Jared Poff - CFO Conference Call Participants Sam Poser - Susquehanna Rick Patel - Needham & Company Tom Nikic - Wells Fargo Steven Marotta - C.L. King & Associates Gabriella Carbone - Deutsche Bank Dana Telsey - Telsey Advisory Group Operator Good morning and welcome to the Designer Brands Inc. First Quarter 2020 Earnings Conference Call. All particip ...

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, 2020 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 ...

Designer Brands Inc. (NYSE:DBI) Q4 2019 Earnings Conference Call March 17, 2020 8:30 AM ET Company Participants Stacy Turnof - IR, Edelman Roger Rawlins - CEO Jared Poff - CFO Conference Call Participants Sam Poser - Susquehanna Rick Patel - Needham & Company Tom Nikic - Wells Fargo Paul Trussell - Deutsche Bank Dana Telsey - Telsey Advisory Group Chris Svezia - Wedbush Securities Operator Good morning and welcome to the Designer Brands Inc. Fourth Quarter 2019 Earnings Conference Call. All participants wil ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Designer Brands Inc.'s unaudited condensed consolidated financial statements, detailing operations, balance sheets, cash flows, and notes on accounting policies and key events [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported increased total revenue and net income for both the third quarter and the nine-month period ended November 2, 2019, compared to the prior year Consolidated Statements of Operations Highlights ($ in thousands, except per share data) | Metric | Three Months Ended Nov 2, 2019 ($) | Three Months Ended Nov 3, 2018 ($) | Nine Months Ended Nov 2, 2019 ($) | Nine Months Ended Nov 3, 2018 ($) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | 936,264 | 833,003 | 2,674,977 | 2,340,373 | | **Operating Profit** | 56,108 | 53,089 | 141,356 | 116,028 | | **Net Income** | 43,460 | 39,319 | 102,061 | 25,260 | | **Diluted EPS** | $0.60 | $0.48 | $1.36 | $0.31 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of November 2, 2019, total assets and liabilities significantly increased due to the adoption of a new lease accounting standard, while cash and cash equivalents decreased Balance Sheet Highlights ($ in thousands) | Metric | Nov 2, 2019 ($) | Feb 2, 2019 ($) | Nov 3, 2018 ($) | | :--- | :--- | :--- | :--- | | **Cash and cash equivalents** | 87,838 | 99,369 | 222,419 | | **Inventories** | 677,696 | 645,317 | 624,167 | | **Operating lease assets** | 950,514 | — | — | | **Total assets** | 2,536,978 | 1,620,584 | 1,474,629 | | **Debt** | 235,000 | 160,000 | — | | **Total liabilities** | 1,793,797 | 788,207 | 532,193 | | **Total shareholders' equity** | 743,181 | 832,377 | 942,436 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended November 2, 2019, net cash from operations decreased, while cash used in investing and financing activities increased, primarily due to capital expenditures and share repurchases Cash Flow Summary ($ in thousands) | Activity | Nine Months Ended Nov 2, 2019 ($) | Nine Months Ended Nov 3, 2018 ($) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | 118,073 | 147,335 | | **Net cash used in investing activities** | (10,265) | (40,953) | | **Net cash used in financing activities** | (120,629) | (60,645) | | **Net (decrease) increase in cash** | (12,730) | 46,487 | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the company's accounting policies, recent acquisitions, and the impact of new accounting standards, particularly regarding lease recognition and segment reporting - The company now operates under three reportable segments: U.S. Retail, Canada Retail (from the TSL acquisition), and Brand Portfolio (from the Camuto Group acquisition)[31](index=31&type=chunk) - In fiscal 2019, the company adopted ASU 2016-02 (Leases), recognizing **$1.0 billion** of lease assets and **$1.1 billion** of lease liabilities upon transition[48](index=48&type=chunk) - The acquisition of Camuto Group in November 2018 for **$166.3 million** was funded with cash and borrowings[58](index=58&type=chunk)[59](index=59&type=chunk) Goodwill of **$87.7 million** was recorded, primarily allocated to the U.S. Retail and Brand Portfolio segments[60](index=60&type=chunk) - During the nine months ended November 2, 2019, the company repurchased **7.1 million** Class A common shares for **$141.6 million**[85](index=85&type=chunk) - As a result of the Camuto Group acquisition, the company identified probable contingent liabilities for unpaid foreign taxes estimated between **$15.5 million** and **$30.0 million**, for which it expects to be indemnified by the sellers[114](index=114&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting revenue growth driven by acquisitions and comparable sales, while addressing challenges impacting gross margins and outlining liquidity and capital resources - Q3 results were impacted by several challenges including weather, tariff impacts, and system implementation issues[123](index=123&type=chunk) - The Canada Retail segment showed positive comparable sales and margin growth, benefiting from a new digital platform and loyalty programs[123](index=123&type=chunk) - The company remains on track to convert the production of the majority of its DSW private label to the Brand Portfolio segment in fiscal 2020, expecting higher margins and product exclusivity[123](index=123&type=chunk) - For the nine months ended Nov 2, 2019, the company repurchased **7.1 million** Class A common shares for **$141.6 million**[160](index=160&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Consolidated net sales increased in Q3 2019 and for the nine-month period, driven by acquisitions and comparable sales growth, though gross profit margins saw a decline due to various factors Q3 2019 Net Sales by Segment ($ in thousands) | Segment | Net Sales ($) | Change (%) | Comparable Sales (%) | | :--- | :--- | :--- | :--- | | U.S. Retail | 716,775 | (0.7)% | 0.0% | | Canada Retail | 76,299 | (4.7)% | 4.4% | | Brand Portfolio | 130,582 | NM | NA | | **Total Segment Net Sales** | **952,504** | **14.5%** | **0.3%** | Q3 2019 Gross Profit by Segment ($ in thousands) | Segment | Gross Profit ($) | Margin (%) | Basis Point Change | | :--- | :--- | :--- | :--- | | U.S. Retail | 201,409 | 28.1% | (510) bps | | Canada Retail | 27,485 | 36.0% | 430 bps | | Brand Portfolio | 33,936 | 26.0% | NM | | **Consolidated Gross Profit** | **268,090** | **28.9%** | **(370) bps** | - The U.S. Retail gross margin decrease was driven by increased promotions and higher shipping costs from online orders[138](index=138&type=chunk) - The Canada Retail gross margin improvement was due to lower clearance activity and better leverage of occupancy costs following the exit of the Town Shoes banner[138](index=138&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company's cash requirements primarily fund inventory, capital expenditures, and growth, with sufficient liquidity from operations and its credit facility to support future strategies - The company believes cash from operations, current cash levels, and availability under its Credit Facility are sufficient to fund operations and growth strategies for the next 12 months[161](index=161&type=chunk) - As of November 2, 2019, the company had **$235.0 million** outstanding on its **$400 million** Credit Facility and was in compliance with all financial covenants[103](index=103&type=chunk)[106](index=106&type=chunk) - Fiscal 2019 capital expenditures are planned to be approximately **$80.0 million**, with **$59.6 million** invested in the first nine months[170](index=170&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from interest rates on its variable-rate debt and foreign currency exchange rates, primarily impacting its Canadian operations - The company's primary market risks are related to interest rates on its variable-rate debt and foreign currency exchange rates from its Canadian operations[174](index=174&type=chunk) - A hypothetical **10%** change in foreign exchange rates could lead to a **$7.3 million** fluctuation in accumulated other comprehensive loss and a **$1.0 million** impact on net non-operating income[176](index=176&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the last fiscal quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of November 2, 2019[178](index=178&type=chunk) - No material changes were made to the company's internal control over financial reporting during the third quarter[179](index=179&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, but management does not expect them to materially impact financial condition or results of operations - The company does not expect current legal proceedings to have a material impact on its financial results[113](index=113&type=chunk)[180](index=180&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This section updates key risk factors, including the potential adverse effects of new U.S. tariffs on Chinese imports and foreign tax contingencies from the Camuto Group acquisition - The imposition of new tariffs on products imported from China poses a material risk, potentially forcing price increases or reducing gross margins[182](index=182&type=chunk)[183](index=183&type=chunk) - The company faces probable contingent liabilities for unpaid foreign taxes from the Camuto Group acquisition, estimated at **$15.5 million** to **$30.0 million**, with uncertainty regarding full recovery through indemnification[184](index=184&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase activities and dividend declarations, including the remaining authorization under the repurchase program Q3 2019 Share Repurchases | Period | Total Shares Purchased | Average Price Paid per Share ($) | | :--- | :--- | :--- | | Aug 4 - Aug 31, 2019 | 1 | $14.92 | | Sep 1 - Oct 5, 2019 | 1,004 (in thousands) | $16.63 | | Oct 6 - Nov 2, 2019 | 2 (in thousands) | $16.60 | | **Total** | **1,007 (in thousands)** | **$16.63** | - As of November 2, 2019, **$334.9 million** remained available for repurchase under the authorized program[85](index=85&type=chunk)[187](index=187&type=chunk) - On December 10, 2019, the Board declared a quarterly cash dividend of **$0.25 per share**[188](index=188&type=chunk) [Defaults Upon Senior Securities](index=42&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reported period - None[189](index=189&type=chunk) [Mine Safety Disclosures](index=42&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's operations - Not Applicable[190](index=190&type=chunk) [Other Information](index=42&type=section&id=Item%205.%20Other%20Information) No other material information is reported in this section - None[191](index=191&type=chunk) [Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including governance documents, executive agreements, officer certifications, and iXBRL formatted financial statements - Exhibits filed include officer certifications (Rule 13a-14(a)/15d-14(a) and Section 1350) and financial data formatted in iXBRL[193](index=193&type=chunk)

Designer Brands Inc. (NYSE:DBI) Q3 2019 Earnings Conference Call December 10, 2019 8:30 AM ET Company Participants Roger Rawlins - Chief Executive Officer Jared Poff - Executive Vice President, Chief Financial Officer Stacy Turnof - Investor Relations Conference Call Participants Sam Poser - Susquehanna Rick Patel - Needham & Company Paul Trussell - Deutsche Bank Chris Svezia - Wedbush Tom Nikic - Wells Fargo Steve Marotta - CL King and Associates Operator Good day and welcome to the Designer Brands Third Q ...

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, 2019 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 ...

Financial Data and Key Metrics Changes - Net income for Q2 2019 was $27.4 million or $0.37 per diluted share, including net after-tax charges of $8.3 million or $0.11 per diluted share related to integration and restructuring expenses [16] - Adjusted EPS was $0.48 per diluted share, compared to an adjusted EPS of $0.63 per diluted share in Q2 2018 [17][16] - Operating income decreased by $20.1 million compared to last year, aligning with expectations due to the previous year's sales boom from the VIP rewards re-launch [18] Business Line Data and Key Metrics Changes - U.S. retail segment comp sales declined by 1.5%, contrasting with last year's comp growth of 9.6%, resulting in a two-year comp of 8.1% [19] - Canadian retail segment achieved 8.1% comp sales growth, building on a 7.1% growth last year, driven by improved average unit retails (AURs) [23] - Digital demand grew by 22%, with significant engagement from customers across all channels [22] Market Data and Key Metrics Changes - Canadian operations saw a digital demand increase of 84% compared to last year, indicating substantial growth potential in this channel [24] - The Camuto segment reported $95.4 million in sales for the quarter, with wholesale sales up in the low single digits [25][26] Company Strategy and Development Direction - The company aims to become the dominant footwear retailer in North America by growing market share and enhancing negotiating leverage [9] - The integration of the Camuto Group is ahead of schedule, with expectations to significantly increase exclusive brand penetration over the next few years [41] - The company is focusing on leveraging its omni-channel infrastructure to improve cost transparency and mitigate external factors like tariffs [15][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the consumer's response, noting a 4% increase in loyalty program sign-ups [68] - The company is cautious about guidance due to uncertainties surrounding tariffs but believes it has strategies to mitigate their impact [52][54] - Management reaffirmed EPS guidance of $1.87 to $1.97 for the full year, despite higher-than-expected intercompany eliminations [47][50] Other Important Information - The company ended the quarter with $77.3 million in cash and investments, down from $289.1 million last year due to acquisition activities and share repurchases [43] - Inventory per square foot across all retail segments remained flat compared to last year, with new inventory from Camuto totaling $110.7 million [44] Q&A Session Summary Question: What is the outlook for full-year comps? - Management reaffirmed guidance for low single-digit comps for the full year [64] Question: How is the overall health of the consumer? - Management noted positive signs in their business, including growth in loyalty program sign-ups and wholesale sales [66][68] Question: What is the expected contribution of Camuto to private label products? - Management indicated that the majority of private label products will be produced by Camuto starting in 2020, with a target of 30% annual growth [71][74] Question: What are the expectations for Camuto's profitability this year? - Management expects Camuto to potentially perform better than the previously projected $10 million loss, with positive contributions anticipated in Q3 [82] Question: What are the gross margin opportunities for the second half? - Management anticipates flat to slightly better gross margin rates for the fall, despite challenges in occupancy leverage [90]

Financial Performance - Total revenue increased to $878.5 million for the three months ended May 4, 2019, up 23.4% from $712.1 million for the same period last year[113]. - Comparable sales increased by 3.0%, driven by strong growth in digital demand[113]. - Net income for the three months ended May 4, 2019, was $31.2 million, or $0.40 per diluted share, representing a 28.4% increase from $24.3 million, or $0.30 per diluted share, for the same period last year[115]. - Operating profit for the three months ended May 4, 2019, was $43.98 million, a 14.3% increase from $38.47 million for the same period last year[118]. - Consolidated net sales for the three months ended May 4, 2019, were $869,992 thousand, representing a 22.5% increase from $710,437 thousand in the same period last year[120]. - Gross profit for the three months ended May 4, 2019, was $256,036 thousand, a 24.8% increase from $205,225 thousand, with a gross profit margin of 29.4% compared to 28.9% in the prior year[123]. Capital Expenditures and Investments - Capital expenditures during the three months ended May 4, 2019, were $24.9 million, compared to $18.2 million for the same period last year[116]. - The company plans to spend approximately $75,000 thousand to $85,000 thousand on capital expenditures in fiscal 2019, with plans to open 17 to 21 new stores[139]. - Capital expenditures for the three months ended May 4, 2019, were $24,900 thousand, contributing to a net cash used in investing activities of $6,200 thousand[133]. Profitability and Cost Management - Gross profit as a percentage of net sales was 29.4%, an increase of 50 basis points from 28.9% in the previous year[114]. - The Brand Portfolio segment, including the newly acquired Camuto Group, is expected to lower product costs and enhance profit growth starting fiscal 2020[111]. - Operating expenses as a percentage of total revenue increased by 180 basis points year-over-year, primarily due to acquired businesses and restructuring costs[125]. Tax and Cash Flow - The effective tax rate decreased from 31.9% to 25.4% for the three months ended May 4, 2019, mainly due to additional valuation allowances[127]. - Net cash used in operations was $3,000 thousand for the three months ended May 4, 2019, compared to net cash provided by operations of $25,300 thousand in the same period last year[132]. Segment Performance - The Canada Retail segment achieved positive operating profit for the first quarter of fiscal 2019, marking the first time in five years that it reached profitability at the start of the year[110]. - U.S. Retail segment net sales increased by $22,056 thousand, or 3.3%, with comparable sales growth of 3.0% driven by higher transactions despite a decline in average dollar sales per transaction[120][121]. Financial Position and Risk Management - As of May 4, 2019, the company had $235,000 thousand outstanding under its Credit Facility, with $161,900 thousand available for borrowings[137]. - The company remains in compliance with all financial covenants of its Credit Facility as of May 4, 2019[138]. - The company has market risk exposure related to interest rates and foreign currency exchange rates, with no hedging instruments currently utilized to mitigate these risks[144]. - As of May 4, 2019, the company had $235.0 million outstanding on its revolving line of credit, which is based on a variable interest rate, exposing it to interest rate market risks[145]. - A hypothetical 100 basis point increase in interest rates would not result in a material additional expense over a 12-month period based on the current balance[145]. - The company is exposed to foreign exchange rate risk primarily through operations in Canada, where the functional currency is the Canadian dollar[146]. - A hypothetical 10% movement in exchange rates could result in a $3.1 million foreign currency translation fluctuation recorded in accumulated other comprehensive loss[146]. - The same 10% movement in exchange rates could also lead to $2.1 million of foreign currency revaluation recorded in nonoperating expenses[146].

Designer Brands Inc. (NYSE:DBI) Q1 2019 Earnings Conference Call May 30, 2019 8:30 AM ET Company Participants Roger Rawlins - Chief Executive Officer Jared Poff - Chief Financial Officer Conference Call Participants Camilo Lyon - Canaccord Genuity Gabriella Carbone - Deutsche Bank Rick Patel - Needham & Company Marotta - C.L. King & Associates Chris Svezia - Wedbush Tom Nikic - Wells Fargo Dylan Carden - William Blair Operator Good morning, ladies and gentlemen and welcome to Designer BrandsÂ' First Quarter ...