Add Designer Brands Inc. to the list of footwear and fashion firms conducting layoffs in early 2026. The DSW parent did a round of layoffs at the end of January, although it wasn’t immediately clear how many employees were impacted. Sources indicated that the layoffs were conducted across operations and brands. More from WWD “As we continue the progress we’ve made in advancing our strategies, last week we took actions to simplify our organizational structure, reduce complexity, and improve speed and acc ...

Core Points - Designer Brands Inc. announced the resignation of Jared Poff as Executive Vice President, Chief Financial Officer, and Chief Administrative Officer, effective October 31, 2025, to pursue a new opportunity [1] - Mark Haley has been appointed as Interim Principal Financial Officer, effective November 1, 2025, and will work closely with Poff and the financial leadership team during the transition [1][2] - The company is initiating an executive search for a permanent Chief Financial Officer [1] Company Overview - Designer Brands is a leading designer, producer, and retailer of footwear and accessories, with a diverse portfolio of brands including Topo Athletic, Keds, Vince Camuto, and others [3] - The company operates a billion-dollar digital commerce business and has over 660 retail locations in North America, including DSW Designer Shoe Warehouse [3] - Designer Brands has donated over twelve million pairs of shoes to the global non-profit Soles4Souls since 2018, reflecting its commitment to corporate social responsibility [3]

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analysts can participate in the call by dialing specific numbers and referencing the conference ID number 3316589 [2] - An archived version of the conference call will be available until September 23, 2025, for those unable to listen live [2] Group 2 - Designer Brands is one of the largest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 - 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]