Core Insights - The closure of Sylvester's Western Wear marks the end of a 50-year family business, highlighting the challenges of maintaining a family-run enterprise in changing market conditions [3][4][15] - Shifting consumer habits towards e-commerce have significantly impacted local businesses, with projections indicating that global e-commerce retail sales will reach $6.42 trillion by 2025, accounting for 20.5% of all retail commerce [5][8] - The store's limited online presence has made it particularly vulnerable to the rise of online shopping, which has been detrimental to its operations [6][10] Company Overview - Sylvester's Western Wear, founded in 1976, was a local institution in Kenner, Louisiana, known for its friendly service and wide selection of western apparel [15] - The store served both local customers and tourists, becoming a regional destination before its closure in December 2025 [3][15] - The business was operated by Lisa Sylvester after the passing of her husband, Ronnie Sylvester, who was a well-respected figure in the community [3][4] Industry Trends - E-commerce sales are projected to grow significantly, with U.S. retail e-commerce expected to reach $1.47 trillion in 2025, a 9.78% increase from 2024 [8] - The rise of large e-commerce players like Amazon and Walmart has negatively affected local retailers, with research indicating that the establishment of e-commerce fulfillment centers can reduce retail employment growth in local areas [10] - The impact of local store closures is profound, as 91% of American consumers shop at small and local stores, emphasizing the importance of these businesses to community economies [11]

Core Viewpoint - GlobalTech Corporation has announced the planned acquisition of 123 Investments Limited, operating as Moda in Pelle, with D. Boral Capital LLC serving as its strategic advisor for this transaction [1][2]. Company Overview - GlobalTech Corporation is a U.S.-based technology holding company focused on artificial intelligence, big data, and emerging technologies, aiming to empower innovative companies through strategic partnerships and capital investment [3]. - D. Boral Capital LLC is a global investment bank that specializes in providing strategic advisory and financial solutions to middle-market and emerging growth companies, having successfully aggregated approximately $30 billion in capital since its inception in 2020 [4][3]. Acquisition Details - The acquisition of Moda in Pelle is part of GlobalTech's strategy to scale globally and invest in cutting-edge solutions, with updates to be shared in future public filings [2]. - The transaction is subject to customary agreements and compliance, with no assurance of timely completion [2]. Moda in Pelle Overview - Moda in Pelle, established in 1975, is a British footwear brand known for its high-quality products and strong presence in the UK market, operating over 40 retail stores and a robust online platform [4].

Core Insights - Designer Brands Inc. (DBI) reported third-quarter fiscal 2025 results with net sales declining year over year and missing estimates, while adjusted earnings surpassed expectations and increased compared to the previous year [1][4]. Financial Performance - Adjusted earnings were 38 cents per share, exceeding the Zacks Consensus Estimate of 18 cents, and up from 27 cents in the same quarter last year [4]. - Net sales totaled $752.4 million, a decrease of 3.2% year over year, missing the Zacks Consensus Estimate of $763 million [4]. - Comparable sales (comps) fell by 2.4% year over year, compared to the expected decline of 1.7% [4]. Margin and Expense Analysis - Gross profit reached $339.6 million, an increase of 1.7% from $273.4 million in the prior year, with gross margin rising by 210 basis points to 45.1% [5]. - Adjusted operating expenses rose by $2.5 million to $296.3 million, representing 39.4% of sales, reflecting a 160 basis points deleverage due to lower sales volume [6]. - Adjusted operating income was $46.5 million, up 6.6% from $43.6 million in the previous year, with an adjusted operating margin increase of 60 basis points to 6.2% [6]. Segment Performance - U.S. Retail segment sales decreased by 0.8% year over year to $610.5 million, slightly above the Zacks Consensus Estimate of $609 million, with comps down 1.5% [7]. - Canada Retail segment sales fell by 7.5% year over year to $77.3 million, missing the Zacks Consensus Estimate of $84 million, with comps down 6.6% [7]. - Brand Portfolio segment sales decreased by 8.6% year over year to $101.9 million, lagging behind the Zacks Consensus Estimate of $100 million, primarily due to a shift in external wholesale sales [8]. Strategic Initiatives - The company noted sequential progress driven by stronger traffic, improved in-store conversion, and disciplined expense and inventory management [2][9]. - DSW brand repositioning and refreshed marketing campaigns gained traction, supported by healthier assortments and improved in-stock levels [3][9]. Cash and Debt Overview - As of November 1, 2025, cash and cash equivalents were $51.4 million, up from $36.2 million a year ago, with $166.9 million available for borrowings [10]. - Total debt decreased to $469.8 million from $536.3 million in the previous year, while inventories were reported at $620 million, down from $637 million [11]. Store Operations - The company operated 672 stores as of November 1, 2025, a slight decrease from 675 stores a year earlier [12]. Future Guidance - For fiscal 2025, the company anticipates net sales to decline by 3-5%, with adjusted operating profit projected between $50 million and $55 million [13].

Investors loved Designer Brands Inc.’s third quarter results, sending shares of the shoe retailer up nearly 48.5 percent in Tuesday’s trading session. Shares of Designer Brands ended the day’s trading session up $2.35 to close at $7.20. More from WWD Net income in the quarter ended Nov. 1 jumped 40 percent to $18.2 million on a net sales slip of 3.2 percent to $752.4 million. What was key in the quarter was the sequential improvement from the second quarter, indicating that strategic initiatives put in p ...

Financial Data and Key Metrics Changes - Total sales for Q3 2025 were down 3% year over year, with comparable sales down 2.4%, reflecting a 260 basis points sequential improvement from Q2 [5][21] - Adjusted operating income for the quarter was $46.5 million, an increase of nearly $3 million from the previous year, despite last year's Q3 including a $9 million benefit from an incentive accrual reversal [6][24] - Adjusted EPS was $0.38, up from $0.27 in the prior year [7][25] - Consolidated gross margin improved by 210 basis points to 45.1% compared to the prior year [23] Business Line Data and Key Metrics Changes - U.S. retail comparable sales decreased 1.5%, with total sales down 1% year over year, showing improvement from Q2 where both metrics were down roughly 5% [8][21] - Canadian retail total sales were down 8%, with comparable sales down 6.6%, primarily due to unseasonable warm weather [11][22] - Brand portfolio segment total sales decreased by 9%, driven by a decline in external wholesale business due to temporary sourcing-related delivery delays [12][23] Market Data and Key Metrics Changes - The top eight brands in the U.S. retail segment posted a positive 4% comparable sales increase for the quarter, with their penetration expanding by 200 basis points year over year to 42% of total sales [9] - The boot category saw an 8% increase in regular price product sales, with DSW outpacing POS by six points in boot sales for Q3 [10] Company Strategy and Development Direction - The company is focused on two pillars: customer and product, aiming to drive growth by scaling private label and building a more profitable wholesale model [13] - The "Let Us Surprise You" campaign is being executed with a holiday-centric approach to enhance DSW as a gifting destination [13][14] - The company is refining its assortment, ending the quarter with approximately 30% lower choice counts compared to last year while maintaining a focus on key item in-stock levels [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about closing the year strongly, citing the dedication of teams and the effectiveness of strategic actions [19] - The momentum from Q3 has continued into Q4, with strong performance in key categories and brands [30] - Despite ongoing macro volatility, the company remains confident in its ability to capture opportunities and build sustainable momentum [19][26] Other Important Information - The company paid down $47 million of debt in the quarter, ending with total debt outstanding of $469.8 million [7][25] - Total liquidity at the end of Q3 was $218.3 million, providing solid financial flexibility [26] Q&A Session Summary Question: Could you elaborate on the trends quarter to date and the wide range for Q4 sales guidance? - Management noted that October was the strongest month and that key categories and brands showing momentum in Q3 have continued into Q4, contributing to the guidance [30][31] Question: How is the company thinking about gross margin in Q4 and the promotional environment? - Management is encouraged by the management of gross margin, anticipating similar favorability in Q4, with a focus on maintaining higher average unit retail prices [33][34]

Financial Data and Key Metrics Changes - Total sales for Q3 2025 were $752.4 million, down 3.2% year over year, with comparable sales down 2.4%, reflecting a 260 basis points sequential improvement from Q2 [5][20] - Adjusted operating income for the quarter was $46.5 million, an increase of nearly $3 million from the previous year, despite last year's Q3 including a $9 million benefit from an incentive accrual reversal [6][23] - Adjusted diluted earnings per share were $0.38, up from $0.27 in the prior year [6][24] - Gross margin improved by 210 basis points to 45.1%, driven by fewer markdowns and improved fulfillment operations [21][22] Business Line Data and Key Metrics Changes - U.S. retail comparable sales decreased by 1.5%, with total sales down 1% year over year, showing improvement from Q2 where both metrics were down roughly 5% [7][20] - Canadian retail total sales were down 8%, with comparable sales down 6.6%, primarily due to unseasonable warm weather affecting seasonal product demand [11][20] - The brand portfolio segment saw total sales down 9%, largely due to temporary sourcing-related delivery delays, but operating income increased by $500,000 year over year [12][20] Market Data and Key Metrics Changes - The top eight brands in the retail segment posted a positive 4% comparable sales growth for the quarter, with their penetration expanding by 200 basis points year over year to 42% of total sales [9] - The athletic category showed improvement, with adult athletic sales up 1% and kids' athletic sales up 8%, reflecting strong back-to-school performance [10] Company Strategy and Development Direction - The company is focused on two pillars: customer and product, aiming to enhance private label offerings and build a more profitable wholesale model [13] - The "Let Us Surprise You" campaign is being executed with a holiday-centric approach to position DSW as a gifting destination [13][14] - The company is refining its assortment, ending the quarter with approximately 30% lower choice counts compared to last year while maintaining high in-stock levels [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about closing the year strongly, citing the dedication of teams and the effectiveness of strategic actions [19][32] - The company expects total net sales for the year to decline in the range of 3%-5%, with adjusted operating income projected between $50 million and $55 million [25] Other Important Information - The company paid down $47 million of debt during the quarter, ending with total debt outstanding of $469.8 million [6][24] - Total liquidity at the end of Q3 was $218.3 million, providing solid financial flexibility [25] Q&A Session Summary Question: Can you elaborate on the trends quarter to date and the wide range for Q4 sales guidance? - Management noted that October was the strongest month, with continued momentum in key categories and brands, particularly in boots and affordable luxury [27][28] Question: How is the company thinking about gross margin in Q4 and the promotional environment? - Management is encouraged by gross margin management, anticipating similar improvements in Q4, with a focus on higher average unit retail prices and reduced unprofitable promotions [30]

Core Insights - The U.S. holiday season is expected to see robust consumer spending, particularly from Thanksgiving Day through Cyber Monday, despite ongoing inflationary pressures [1][7] Retail Industry Overview - U.S. holiday season sales are projected to reach $253.4 billion, reflecting a 5.3% year-over-year increase [4] - The Cyber week, which includes Thanksgiving Day, Black Friday, and Cyber Monday, is anticipated to generate $43.7 billion, accounting for 17.2% of total holiday sales, marking a 6.3% increase from the previous year [5] - Thanksgiving Day sales are expected to hit $6.4 billion, while Cyber Monday is projected to generate $14.2 billion, up 6.3% year-over-year [6] Online Sales Growth - Online sales are expected to grow significantly, with mobile and online platforms projected to account for 56.1% of overall holiday season sales [6] Selected Retail Stocks - **Amazon.com, Inc. (AMZN)**: Expected earnings growth rate of 29.7% for the current year, with a Zacks Rank 2 [9] - **Expedia Group, Inc. (EXPE)**: Expected earnings growth rate of 24.6% for next year, currently holding a Zacks Rank 1 [11] - **Boot Barn Holdings, Inc. (BOOT)**: Expected earnings growth rate of 20.5% for the current year, with a Zacks Rank 2 [12] - **Tapestry (TPR)**: Expected earnings growth rate of 10.4% for the current year, currently holding a Zacks Rank 2 [14] Earnings Estimate Revisions - All selected stocks have seen positive earnings estimate revisions in the past 60 days, indicating strong potential for solid returns [3][10]

Financial Data and Key Metrics Changes - The company reported Q3 EPS of $0.53 and net sales of $297.2 million, both exceeding consensus expectations [3] - Gross profit margin expanded by 160 basis points to 37.6%, driven by disciplined pricing and a shift towards higher-income customers [4][17] - Net income for Q3 was $14.6 million, down from $19.2 million year-over-year, primarily due to re-banner investments impacting EPS by $0.22 [18] Business Line Data and Key Metrics Changes - Shoe Station net sales grew by 5.3%, while Shoe Carnival net sales declined by 5.2%, reflecting a significant performance gap of 10.5 percentage points [5][15] - Athletics represented 51% of total sales in Q3, with low single-digit growth overall, while non-athletic categories saw a mid-single-digit comp decline [4][16] - Shoe Station's product margins expanded by 260 basis points, contrasting with Shoe Carnival's decline due to economic pressures on lower-income households [5][18] Market Data and Key Metrics Changes - The company is strategically shifting away from lower-income households, focusing on customers with median incomes of $60,000-$100,000 [5][9] - The competitive response in the lower-income segment is driving margins down across the industry, while Shoe Station is positioned to capture premium brand demand [5][9] Company Strategy and Development Direction - The company plans to consolidate to one brand, Shoe Station, to improve operational efficiency and capitalize on the stronger performance of this banner [8][9] - By the end of fiscal 2027, the company expects to achieve $20 million in annual cost savings and $100 million in working capital freed from inventory reduction [9][27] - The transition to Shoe Station is expected to restore comparable sales growth and expand EPS significantly by fiscal 2028 [12][27] Management's Comments on Operating Environment and Future Outlook - Management highlighted that fiscal 2026 will be an investment year, with expectations of continued pressure on sales in the first half, followed by a potential turnaround in the second half as Shoe Station becomes the dominant brand [22][23] - The company remains debt-free with over $100 million in cash, allowing it to fund its transformation without external financing [10][13] - Management expressed confidence in the long-term value creation potential of the one-banner strategy, emphasizing the shift in consumer preferences towards premium brands [29] Other Important Information - The company completed 101 store re-banners during fiscal 2025, with plans to reach 51% of its stores operating as Shoe Station by back-to-school 2026 [7][28] - The Rogan's acquisition is fully integrated into Shoe Station, and results will be reported under this banner starting in Q4 [20] Q&A Session Summary Question: What is the expected drag on earnings from re-bannering next year? - Management indicated that re-banner expenses for the next year are expected to be between $25 million and $30 million, with costs being front-loaded due to the conversion of approximately 70 stores [30][31] Question: How will the company manage inventory reductions? - The company plans to liquidate non-GoForward products aggressively and expects some margin pressure during this process [52][53] Question: What is the outlook for the boot business? - Management noted that while the boot season started slowly, there were double-digit increases in sales as inventory improved in October [35] Question: Will the company be able to elevate its product assortment at Shoe Station? - Management confirmed that there are ongoing discussions with premium brands to enhance the product assortment at Shoe Station [37] Question: What is the timeline for achieving the 80% re-bannering goal? - Management stated that the focus is on reaching the critical 51% threshold by summer 2026, with plans to exceed 90% by the end of fiscal 2028 [54]

Company Overview - Kendra Scott, founded in 2002, has grown from a spare bedroom startup with $500 investment to a billion-dollar brand [1][2] - The company is expanding to have 170 stores by the end of the year [6] - Kendra Scott also launched a new brand called Yellow Rose, inspired by Texas and Western wear [3][9] Business Strategy & Innovation - Kendra Scott started by selling jewelry door-to-door in Austin boutiques [4] - The company emphasizes evolving as a brand and adapting to industry trends, as seen with the launch of Yellow Rose [10][11] - Yellow Rose aims to bring Western flare to everyday life, focusing on women's fashion [9][10] Philanthropy & Social Impact - Since 2010, Kendra Scott has given over $70 million to women and youth nonprofits through the Kendra Scott Foundation [14] - The company's mission is to create products that not only look and feel good but also "do good," emphasizing fashion for philanthropy [13][14] Entrepreneurial Advice - Kendra Scott encourages aspiring entrepreneurs to overcome fear of failure and pursue their passions [17][18] - True success comes from creating something with purpose and love, not just for monetary gain [18]

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2025 was $667.9 million, a 6.9% increase compared to Q3 2024. Excluding Kurt Geiger, revenue decreased by 14.8% [9] - Net income attributable to Steve Madden Ltd. for the quarter was $30.4 million, or $0.43 per diluted share, compared to $64.8 million, or $0.91 per diluted share in Q3 2024 [13] - Operating income for the quarter was $46.3 million, or 6.9% of revenue, down from $85.4 million, or 13.7% of revenue in the prior year [12] Business Line Data and Key Metrics Changes - Wholesale revenue was $442.7 million, down 10.7% compared to Q3 2024. Excluding Kurt Geiger, wholesale revenue decreased by 19% [9] - Direct-to-consumer (DTC) revenue increased by 76.6% to $221.5 million. Excluding Kurt Geiger, DTC revenue increased by 1.5% [9] - Wholesale footwear revenue was $266.5 million, a 10.9% decrease from the comparable period in 2024, or down 16.7% excluding Kurt Geiger [9] Market Data and Key Metrics Changes - Comp sales for the Kurt Geiger brand were up mid-teens in Q3 2025, indicating strong consumer response [6] - The company ended the quarter with 397 company-operated retail stores, including 99 outlets, and 7 e-commerce websites [10] Company Strategy and Development Direction - The company is focused on deepening consumer connections through compelling products and effective marketing, particularly for the Steve Madden brand [5] - The acquisition integration of Kurt Geiger is on track, with progress on revenue synergies and cost savings opportunities [7] - The company plans to open a handful of stores in the U.S. for Kurt Geiger next year and expects growth in both retail and wholesale channels [29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by new tariffs but believes the worst is behind them, with order patterns from wholesale customers normalizing [4] - The company expects revenue to increase by 27%-30% in Q4 2025 compared to Q4 2024, with earnings per share projected in the range of $0.41-$0.46 [14] - Management expressed confidence in improved financial performance in Q4 and the long-term growth potential of their brands and business model [8] Other Important Information - Consolidated gross margin was 43.4%, up from 41.6% in the comparable period of 2023, primarily due to the higher mix of DTC from Kurt Geiger [10] - The company approved a quarterly cash dividend of $0.21 per share, payable on December 26, 2025 [14] Q&A Session Summary Question: How is the fashion developing this fall and inventory levels in the wholesale channel? - Management noted strong performance in the core Steve Madden women's shoe business, particularly in boots, and expressed confidence in spring prospects [17][18] Question: What is the expected revenue contribution from Kurt Geiger in Q4? - Management expects Kurt Geiger's revenue contribution to be between $182 million and $187 million, with over 70% coming from DTC [20][21] Question: How is the margin structure expected to recover? - Management believes all margin erosion is recoverable over time, with tariffs expected to be reflected in retail prices [64][65] Question: What is the outlook for the wholesale business by type? - Management indicated the strongest performance is in regular price channels, while value price channels have faced more pressure [85] Question: How is Kurt Geiger performing by region? - Kurt Geiger is growing in all core regions, including the U.K., U.S., and Europe [42] Question: What are the expectations for international brand growth? - Management anticipates high single-digit revenue growth for Steve Madden internationally in 2025 and strong double-digit growth for Kurt Geiger [73]