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Designer Brands Inc. Reports Third Quarter 2023 Financial Results

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Designer Brands Inc. (NYSE: DBI) reported a decrease in net sales by 9.1% to $786.3 million and a 9.3% decrease in total comparable sales for the third quarter ended October 28, 2023. The gross profit decreased to $256.4 million, and net income attributable to Designer Brands Inc. was $10.1 million, including net after-tax charges of $0.07 per diluted share. The company reaffirmed its financial outlook for the full year 2023, expecting a high-single digit decrease in net sales and diluted EPS of $0.40 - $0.70.
Positive
  • Improved performance in casual and clearance categories
  • Ongoing refreshment of assortment and new marketing initiatives
  • Strong cash flow and ample liquidity
  • Reaffirmation of financial outlook for 2023
Negative
  • Decrease in net sales and total comparable sales
  • Decrease in gross profit
  • Net after-tax charges affecting diluted EPS

COLUMBUS, Ohio, Dec. 5, 2023 /PRNewswire/ -- Designer Brands Inc. (NYSE: DBI) (the "Company" and "Designer Brands"), one of the world's largest designers, producers, and retailers of footwear and accessories, announced financial results for the third quarter ended October 28, 2023.

"This quarter, we were impacted by a footwear market that contracted for the first time since COVID coupled with unseasonably warm weather, which significantly reduced customer demand for shoes and pressured our heavily seasonal assortment," stated Doug Howe, Chief Executive Officer. "We saw improved performance in casual and clearance categories this quarter, but this was not enough to offset the broader lack of demand. While macro pressures notably impacted our business, we clearly recognize the need to operate with even greater speed and increase the level of innovation, newness, and fashion into our assortments, returning to our roots as a merchant organization and a fashion footwear retailer."

Howe continued, "As we look ahead, we do not anticipate pressures alleviating in the near-term, and we will continue to adjust accordingly. Our team is already executing several initiatives to address areas for improvement within our business. Ongoing refreshment of our assortment, including new specialty sizes, and new marketing initiatives are two ways we are actively reinforcing our business as the best in shoes. We have also made some difficult decisions regarding leadership across our organization and believe that we are making progress in positioning our business well for the long-term while continuing to generate strong cash flow and ample liquidity."

Third Quarter Operating Results (Unless otherwise stated, all comparisons are to the third quarter of 2022)

  • Net sales decreased 9.1% to $786.3 million.
  • Total comparable sales decreased by 9.3%.
  • Gross profit decreased to $256.4 million versus $285.8 million last year, and gross margin was 32.6% compared to 33.0% for the same period last year.
  • Reported net income attributable to Designer Brands Inc. was $10.1 million, or diluted earnings per share ("EPS") of $0.17, including net after-tax charges of $0.07 per diluted share from adjusted items, primarily related to restructuring, integration, and Chief Executive Officer ("CEO") transition costs as well as valuation allowance change on deferred tax assets.
  • Adjusted net income was $14.8 million, or adjusted diluted EPS of $0.24.

Liquidity

  • Cash and cash equivalents totaled $54.6 million at the end of the third quarter of 2023, compared to $62.5 million at the end of the same period last year, with $213.3 million available for borrowings under our senior secured asset-based revolving credit facility and $85.0 million available for borrowings under our new senior secured term loan credit agreement ("Term Loan"). On October 31, 2023, we borrowed an additional $25.0 million under the Term Loan with any remaining borrowings to be taken by January 31, 2024. Debt totaled $375.5 million at the end of the third quarter of 2023 compared to $415.5 million at the end of the same period last year.
  • Net cash provided by operating activities was $202.5 million for the first nine months of 2023 compared to $37.9 million during the same period last year.
  • The Company ended the third quarter with inventories of $601.5 million compared to $681.8 million at the end of the same period last year.

Return to Shareholders

  • During the third quarter of 2023, the Company repurchased an aggregate 7.6 million Class A common shares at an aggregate cost of $79.7 million, including transaction costs and excise tax. As of October 28, 2023, $87.7 million of Class A common shares remained available for repurchase under the share repurchase program.
  • A dividend of $0.05 per share of Class A and Class B common shares will be paid on December 14, 2023 to shareholders of record at the close of business on November 30, 2023.

Store Openings and Closings

During the third quarter of 2023, we opened one store in the U.S. and six stores in Canada, resulting in a total of 499 U.S. stores and 144 Canadian stores as of October 28, 2023.

Updated 2023 Financial Outlook

The Company is reaffirming the following guidance for the full year 2023:

Metric


 Previous Guidance


Current Guidance

Net Sales:





Designer Brands net sales growth, excluding Keds


Down mid- to high-single digits


Down high-single digits

Incremental net sales from Keds acquisition


$75.0 million to $85.0 million


$60.0 million to $70.0 million

Diluted EPS:





Designer Brands, excluding Keds


$1.20 - $1.50


$0.40 - $0.70

Contribution from Keds acquisition


~$0.00


~$0.00

Webcast and Conference Call

The Company is hosting a conference call today at 8:30 am Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-888-317-6003, or the international dial in, 1-412-317-6061, and reference conference ID number 7417878 approximately ten minutes prior to the start of the conference call. The conference call will also be broadcast live over the internet and can be accessed through the following link, as well as through the Company's investor website at investors.designerbrands.com:

https://app.webinar.net/06YrEpem8ZW

For those unable to listen to the live webcast, an archived version will be available at the same location until December 19, 2023. A replay of the teleconference will be available by dialing the following numbers:

U.S.: 1-877-344-7529
Canada: 1-855-669-9658
International: 1-412-317-0088
Passcode: 1276880

Important information may be disseminated initially or exclusively via the Company's investor website; investors should consult the site to access this information.

About Designer Brands

Designer Brands is one of the world's largest designers, producers, and retailers of the most recognizable footwear brands and accessories, transforming and defining the footwear industry through a mission of inspiring self-expression. With a diversified, world-class portfolio of coveted brands, including Keds, Lucky Brand, Crown Vintage, Vince Camuto, Topo Athletic, Jessica Simpson, Le Tigre and others, Designer Brands designs and produces on-trend footwear and accessories for all of life's occasions delivered to the consumer through a robust direct-to-consumer omni-channel infrastructure and powerful national wholesale distribution. Powered by a billion-dollar digital commerce business across multiple domains and over 640 DSW Designer Shoe Warehouse and The Shoe Company stores in North America, Designer Brands delivers current, in-line footwear and accessories from the largest national brands in the industry and holds leading market share positions in key product categories across Women's, Men's, and Kids'. Designer Brands also distributes its brands internationally through select wholesale and distributor relationships while also leveraging design and sourcing expertise to build private label product for national retailers. Designer Brands is committed to being a difference maker in the world, taking steps forward to advance diversity, equity, and inclusion in the footwear industry and supporting a global community and the health of the planet by donating approximately nine million pairs of shoes to the global non-profit Soles4Souls. To learn more, visit www.designerbrands.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Certain statements in this press release may constitute forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by the use of forward-looking words such as "outlook," "could," "believes," "expects," "potential," "continues," "may," "will," "should," "would," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates," or the negative version of those words or other comparable words. These statements are based on the Company's current views and expectations and involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. These factors include, but are not limited to: uncertain general economic conditions, including recession concerns, inflationary pressures and rising interest rates, and the related impacts to consumer discretionary spending; supply chain challenges; risks related to adverse public health developments; our ability to anticipate and respond to fashion trends, consumer preferences and changing customer expectations; our ability to maintain strong relationships with our vendors, manufacturers, licensors, and retailer customers; risks related to losses or disruptions associated with our distribution systems, including our distribution centers and stores, whether as a result of reliance on third-party providers, or otherwise; our ability to retain our existing management team, and continue to attract qualified new personnel; risks related to cyber security threats and privacy or data security breaches or the potential loss or disruption of our information technology ("IT") systems; risks related to the implementation of an enterprise resource planning system software solution and other IT systems; our reliance on our loyalty programs and marketing to drive traffic, sales, and customer loyalty; our ability to protect our reputation and to maintain the brands we license; our competitiveness with respect to style, price, brand availability, and customer service; risks related to our international operations, including international trade, our reliance on foreign sources for merchandise, exposure to political, economic, operational, compliance and other risks, and fluctuations in foreign currency exchange rates; our ability to comply with privacy laws and regulations, as well as other legal obligations; domestic and global political and social conditions; geopolitical tensions, including relating to the ongoing war in Ukraine and the Israel-Hamas war; risks associated with climate change and other corporate responsibility issues; and uncertainties related to future legislation, regulatory reform, policy changes, or interpretive guidance on existing legislation. Risks and other factors that could cause our actual results to differ materially from our forward-looking statements are described in the Company's latest Annual Report on Form 10-K or other reports made or filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the time when made. The Company undertakes no obligation to update or revise the forward-looking statements included in this press release to reflect any future events or circumstances.

 

DESIGNER BRANDS INC. 
SEGMENT RESULTS
(unaudited)


Net Sales


Three months ended





(dollars in thousands)

October 28, 2023


October 29, 2022


Change


Amount


% of
Segment
Net Sales


Amount


% of
Segment
Net Sales


Amount


%

Segment net sales:












U.S. Retail

$                631,610


78.8 %


$                706,391


78.8 %


$     (74,781)


(10.6) %

Canada Retail

75,610


9.5 %


82,289


9.2 %


(6,679)


(8.1) %

Brand Portfolio

94,057


11.7 %


107,458


12.0 %


(13,401)


(12.5) %

Total segment net sales

801,277


100.0 %


896,138


100.0 %


(94,861)


(10.6) %

Elimination of
intersegment net sales

(14,948)




(31,118)




16,170


(52.0) %

Consolidated net sales

$                786,329




$                865,020




$     (78,691)


(9.1) %




Nine months ended



(dollars in thousands)

October 28, 2023


October 29, 2022


Change


Amount


% of
Segment
Net Sales


Amount


% of
Segment
Net Sales


Amount


%

Segment net sales:












U.S. Retail

$             1,903,038


80.2 %


$             2,143,199


81.5 %


$   (240,161)


(11.2) %

Canada Retail

199,831


8.4 %


216,888


8.2 %


(17,057)


(7.9) %

Brand Portfolio

271,257


11.4 %


271,265


10.3 %


(8)


— %

Total segment net sales

2,374,126


100.0 %


2,631,352


100.0 %


(257,226)


(9.8) %

Elimination of
intersegment net sales

(53,498)




(76,470)




22,972


(30.0) %

Consolidated net sales

$             2,320,628




$             2,554,882




$   (234,254)


(9.2) %

 

Net Sales by Brand Categories

(in thousands)

U.S. Retail


Canada
Retail


Brand
Portfolio


Eliminations


Consolidated

Three months ended October 28, 2023










Owned Brands:(1)










Direct-to-consumer

$       123,973


$                —


$         17,204


$                 —


$       141,177

External customer wholesale, commission
income, and other



61,905



61,905

Intersegment wholesale and commission income



14,948


(14,948)


Total Owned Brands

123,973



94,057


(14,948)


203,082

National brands

507,637





507,637

Canada Retail(2)


75,610




75,610

Total net sales

$       631,610


$        75,610


$         94,057


$       (14,948)


$       786,329

Three months ended October 29, 2022










Owned Brands:(1)










Direct-to-consumer

$       153,311


$                —


$           9,810


$                 —


$       163,121

External customer wholesale, commission
income, and other



66,530



66,530

Intersegment wholesale and commission income



31,118


(31,118)


Total Owned Brands

153,311



107,458


(31,118)


229,651

National brands

553,080





553,080

Canada Retail(2)


82,289




82,289

Total net sales

$       706,391


$        82,289


$       107,458


$       (31,118)


$       865,020

Nine months ended October 28, 2023










Owned Brands:(1)










Direct-to-consumer

$       362,931


$                —


$         43,604


$                 —


$       406,535

External customer wholesale, commission
income, and other



174,155



174,155

Intersegment wholesale and commission income



53,498


(53,498)


Total Owned Brands

362,931



271,257


(53,498)


580,690

National brands

1,540,107





1,540,107

Canada Retail(2)


199,831




199,831

Total net sales

$   1,903,038


$      199,831


$       271,257


$       (53,498)


$   2,320,628

Nine months ended October 29, 2022










Owned Brands:(1)










Direct-to-consumer

$       440,343


$                —


$         24,130


$                 —


$       464,473

External customer wholesale, commission
income, and other



170,665



170,665

Intersegment wholesale and commission income



76,470


(76,470)


Total Owned Brands

440,343



271,265


(76,470)


635,138

National brands

1,702,856





1,702,856

Canada Retail(2)


216,888




216,888

Total net sales

$   2,143,199


$      216,888


$       271,265


$       (76,470)


$   2,554,882











(1)

"Owned Brands" refers to those brands we have rights to sell through ownership or license arrangements. Beginning in the first quarter of 2023, sales of the Keds brand are included in Owned Brands as a result of our acquisition of Keds. Sales of the Keds brand in periods prior to the first quarter of 2023 are not restated, as this brand was considered a national brand during those periods.

(2)

We currently do not report the Canada Retail segment net sales by brand categories.

 

Comparable Sales


Three months ended


Nine months ended


October 28, 2023


October 29, 2022


October 28, 2023


October 29, 2022

Change in comparable sales:








U.S. Retail segment

(9.8) %


1.1 %


(10.2) %


5.5 %

Canada Retail segment

(7.7) %


18.8 %


(4.8) %


33.5 %

Brand Portfolio segment - direct-to-
consumer channel

7.0 %


27.0 %


6.0 %


29.6 %

Total

(9.3) %


3.0 %


(9.5) %


7.8 %

 

Store Count

(square footage in thousands)

October 28, 2023


October 29, 2022


Number of
Stores


Square
Footage


Number of
Stores


Square
Footage

U.S. Retail segment - DSW stores

499


9,966


504


10,188

Canada Retail segment:








The Shoe Company stores

119


622


113


596

DSW stores

25


496


25


496


144


1,118


138


1,092

Total number of stores

643


11,084


642


11,280

 

Gross Profit


Three months ended







(dollars in thousands)

October 28, 2023


October 29, 2022


Change


Amount


% of
Segment
Net Sales


Amount


% of
Segment
Net Sales


Amount


%


Basis
Points

Segment gross profit:














U.S. Retail

$     200,268


31.7 %


$     232,058


32.9 %


$     (31,790)


(13.7) %


(120)

Canada Retail

26,606


35.2 %


31,298


38.0 %


(4,692)


(15.0) %


(280)

Brand Portfolio

28,654


30.5 %


23,839


22.2 %


4,815


20.2 %


830

Total segment gross profit

255,528


31.9 %


287,195


32.0 %


(31,667)


(11.0) %


(10)

Net recognition (elimination) of
intersegment gross profit

878




(1,376)




2,254





Consolidated gross profit

$     256,406


32.6 %


$     285,819


33.0 %


$     (29,413)


(10.3) %


(40)




Nine months ended



(dollars in thousands)

October 28, 2023


October 29, 2022


Change


Amount


% of
Segment
Net Sales


Amount


% of
Segment
Net Sales


Amount


%


Basis
Points

Segment gross profit:














U.S. Retail

$     622,850


32.7 %


$     716,268


33.4 %


$     (93,418)


(13.0) %


(70)

Canada Retail

67,591


33.8 %


81,145


37.4 %


(13,554)


(16.7) %


(360)

Brand Portfolio

75,037


27.7 %


59,975


22.1 %


15,062


25.1 %


560

Total segment gross profit

765,478


32.2 %


857,388


32.6 %


(91,910)


(10.7) %


(40)

Net recognition (elimination) of
intersegment gross profit

2,054




(154)




2,208





Consolidated gross profit

$     767,532


33.1 %


$     857,234


33.6 %


$     (89,702)


(10.5) %


(50)

 

Intersegment Eliminations


Three months ended

(in thousands)

October 28, 2023


October 29, 2022

Intersegment recognition and elimination activity:




Net sales recognized by Brand Portfolio segment

$                (14,948)


$                (31,118)

Cost of sales:




Cost of sales recognized by Brand Portfolio segment

9,857


21,426

Recognition of intersegment gross profit for inventory previously purchased that
was subsequently sold to external customers during the current period

5,969


8,316


$                        878


$                  (1,376)




Nine months ended

(in thousands)

October 28, 2023


October 29, 2022

Intersegment recognition and elimination activity:




Net sales recognized by Brand Portfolio segment

$                (53,498)


$                (76,470)

Cost of sales:




Cost of sales recognized by Brand Portfolio segment

38,134


52,149

Recognition of intersegment gross profit for inventory previously purchased that
was subsequently sold to external customers during the current period

17,418


24,167


$                    2,054


$                      (154)

 

DESIGNER BRANDS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except per share amounts)



Three months ended


Nine months ended


October 28,
2023


October 29,
2022


October 28,
2023


October 29,
2022

Net sales

$        786,329


$        865,020


$     2,320,628


$     2,554,882

Cost of sales

(529,923)


(579,201)


(1,553,096)


(1,697,648)

Gross profit

256,406


285,819


767,532


857,234

Operating expenses

(230,788)


(222,232)


(665,437)


(674,348)

Income from equity investments

2,503


2,290


6,972


6,670

Impairment charges


(1,349)


(649)


(4,237)

Operating profit

28,121


64,528


108,418


185,319

Interest expense, net

(8,767)


(4,826)


(22,296)


(10,530)

Loss on extinguishment of debt and write-off of debt issuance
costs




(12,862)

Non-operating income (expense), net

(162)


(152)


83


(109)

Income before income taxes

19,192


59,550


86,205


161,818

Income tax provision

(8,987)


(14,379)


(27,372)


(44,252)

Net income

10,205


45,171


58,833


117,566

Net income attributable to redeemable noncontrolling interest

(64)



(73)


Net income attributable to Designer Brands Inc.

$          10,141


$          45,171


$          58,760


$        117,566

Diluted earnings per share attributable to Designer Brands
Inc.

$               0.17


$               0.65


$               0.90


$               1.60

Weighted average diluted shares

61,405


69,140


65,292


73,287

 

DESIGNER BRANDS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands)



October 28, 2023


January 28, 2023


October 29, 2022

ASSETS






Current assets:






Cash and cash equivalents

$                  54,638


$                  58,766


$                  62,507

Receivables, net

106,916


77,763


228,746

Inventories

601,470


605,652


681,843

Prepaid expenses and other current assets

36,785


47,750


53,950

Total current assets

799,809


789,931


1,027,046

Property and equipment, net

224,638


235,430


233,515

Operating lease assets

742,384


700,373


691,032

Goodwill

123,759


97,115


93,655

Intangible assets, net

83,032


31,866


19,273

Deferred tax assets

47,199


48,285


Equity investments

62,239


63,820


64,246

Other assets

49,518


42,798


42,611

Total assets

$             2,132,578


$             2,009,618


$             2,171,378

LIABILITIES, REDEEMABLE NONCONTROLLING
INTEREST AND SHAREHOLDERS' EQUITY






Current liabilities:






Accounts payable

$                310,113


$                255,364


$                315,996

Accrued expenses

183,383


190,676


213,905

Current maturities of long-term debt

2,500



Current operating lease liabilities

182,259


190,086


187,619

Total current liabilities

678,255


636,126


717,520

Long-term debt

372,965


281,035


415,467

Non-current operating lease liabilities

669,494


631,412


628,820

Other non-current liabilities

21,072


24,989


26,059

Total liabilities

1,741,786


1,573,562


1,787,866

Redeemable noncontrolling interest

3,208


3,155


Total shareholders' equity

387,584


432,901


383,512

Total liabilities, redeemable noncontrolling interest, and
shareholders' equity

$             2,132,578


$             2,009,618


$             2,171,378

 

DESIGNER BRANDS INC. 
NON-GAAP RECONCILIATION
(unaudited and in thousands, except per share amounts)



Three months ended


Nine months ended


October 28, 2023


October 29, 2022


October 28, 2023


October 29, 2022

Operating expenses

$             (230,788)


$             (222,232)


$             (665,437)


$             (674,348)

Non-GAAP adjustments:








CEO transition costs

1,029



3,983


Restructuring and integration costs

2,252


850


5,190


2,456

Acquisition-related costs


400


1,597


400

Total non-GAAP adjustments

3,281


1,250


10,770


2,856

Adjusted operating expenses

$             (227,507)


$             (220,982)


$             (654,667)


$             (671,492)

Operating profit

$                 28,121


$                 64,528


$               108,418


$               185,319

Non-GAAP adjustments:








CEO transition costs

1,029



3,983


Restructuring and integration costs

2,252


850


5,190


2,456

Acquisition-related costs


400


1,597


400

Impairment charges


1,349


649


4,237

Total non-GAAP adjustments

3,281


2,599


11,419


7,093

Adjusted operating profit

$                 31,402


$                 67,127


$               119,837


$               192,412

Net income attributable to Designer Brands
Inc.

$                 10,141


$                 45,171


$                 58,760


$               117,566

Non-GAAP adjustments:








CEO transition costs

1,029



3,983


Restructuring and integration costs

2,252


850


5,190


2,456

Acquisition-related costs


400


1,597


400

Impairment charges


1,349


649


4,237

Loss on extinguishment of debt and write-
off of debt issuance costs




12,862

Foreign currency transaction losses (gains)

162


152


(83)


109

Total non-GAAP adjustments before tax effect

3,443


2,751


11,336


20,064

Tax effect on above non-GAAP adjustments

(853)


(711)


(2,885)


(5,085)

Discrete and permanent tax on non-
deductible CEO transition costs

907



2,804


Valuation allowance change on deferred tax
assets

1,109


(1,070)


(1,615)


(3,565)

Total non-GAAP adjustments, after tax

4,606


970


9,640


11,414

Net income attributable to redeemable
noncontrolling interest

64



73


Adjusted net income

$                 14,811


$                 46,141


$                 68,473


$               128,980

Diluted earnings per share

$                      0.17


$                      0.65


$                      0.90


$                      1.60

Adjusted diluted earnings per share

$                      0.24


$                      0.67


$                      1.05


$                      1.76

Non-GAAP Measures

To supplement amounts presented in our consolidated financial statements determined in accordance with accounting principles generally accepted in the United States ("GAAP"), the Company uses certain non-GAAP financial measures, including adjusted operating expenses, adjusted operating profit, adjusted net income, and adjusted diluted earnings per share as shown in the table above. These measures adjust for the effects of: (1) CEO transition costs; (2) restructuring and integration costs, including severance charges other than those included in CEO transition costs; (3) acquisition-related costs; (4) impairment charges; (5) loss on extinguishment of debt and write-off of debt issuance costs; (6) foreign currency transaction losses (gains); (7) the net tax impact of such items, including discrete and permanent tax on non-deductible CEO transition costs; (8) the change in the valuation allowance on deferred tax assets; and (9) net income attributable to redeemable noncontrolling interest. The unaudited adjusted results should not be construed as an alternative to the reported results determined in accordance with GAAP. These financial measures are not based on any standardized methodology and are not necessarily comparable to similar measures presented by other companies. The Company believes these non-GAAP financial measures provide useful information to both management and investors to increase comparability to prior periods by adjusting for certain items that may not be indicative of core operating measures and to better identify trends in our business. The adjusted financial results are used by management to, and allow investors to, evaluate the operating performance of the Company compared to prior periods, when reviewed in conjunction with the Company's GAAP statements. These amounts are not determined in accordance with GAAP and therefore should not be used exclusively in evaluating the Company's business and operations.

Comparable Sales Performance Metric

We consider the percent change in comparable sales from the same previous year period, a primary metric commonly used throughout the retail industry, to be an important measurement for management and investors of the performance of our direct-to-consumer businesses. We include in our comparable sales metric sales from stores in operation for at least 14 months at the beginning of the applicable year. Stores are added to the comparable base at the beginning of the year and are dropped for comparative purposes in the quarter in which they are closed. Comparable sales include the e-commerce sales of the U.S. Retail and Canada Retail segments. Comparable sales for the Canada Retail segment exclude the impact of foreign currency translation and are calculated by translating current period results at the foreign currency exchange rate used in the comparable period of the prior year. Comparable sales include the e-commerce sales of the Brand Portfolio segment from the direct-to-consumer e-commerce site for the Vince Camuto brand. The e-commerce sales for Topo, Keds, and Hush Puppies will be added to the comparable base for the Brand Portfolio segment beginning with the first quarter of 2024, the second quarter of 2024, and the third quarter of 2024, respectively. The calculation of comparable sales varies across the retail industry and, as a result, the calculations of other retail companies may not be consistent with our calculation.

CONTACT: Stacy Turnof, DesignerBrandsIR@edelman.com

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SOURCE Designer Brands Inc.

Designer Brands Inc. reported a 9.1% decrease in net sales to $786.3 million for the third quarter ended October 28, 2023.

Designer Brands Inc. expects a high-single digit decrease in net sales and diluted EPS of $0.40 - $0.70 for the full year 2023.

Designer Brands Inc. is undertaking ongoing refreshment of its assortment, including new specialty sizes, and new marketing initiatives to reinforce its business as the best in shoes.

Designer Brands Inc. had cash and cash equivalents totaling $54.6 million at the end of the third quarter of 2023, with $213.3 million available for borrowings under its senior secured asset-based revolving credit facility.

Designer Brands Inc. opened one store in the U.S. and six stores in Canada during the third quarter of 2023, resulting in a total of 499 U.S. stores and 144 Canadian stores as of October 28, 2023.
Designer Brands Inc

NYSE:DBI

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About DBI

designer brands is a leading footwear and accessories retailer that operates a portfolio of retail concepts with a shared goal of inspiring self-expression. our primary concept, designer shoe warehouse, offers brand name and designer dress, casual and athletic footwear and accessories. dsw operates more than 500 stores in 44 states, as well as nearly 290 leased departments for other retailers in the united states under the affiliated business group. we also operate an e-commerce site, http://www.dsw.com, and a mobile site, http://m.dsw.com.our canadian concept, town shoes limited, operates retail locations under several names: town shoes, the shoe company, shoe warehouse and dsw designer shoe warehouse. our affiliated business group operates leased departments for other retailers, such as stein mart, in the u.s. our international division includes several stores in the middle east with partners at apparel group. we strive to be the obvious first choice for shoes as we bring engaging ex