Designer Brands Investor Center

Designer Brands is one of North America’s largest designers, producers and retailers of footwear and accessories. Our business segments include world-class design and sourcing operations, a robust wholesaling business, and more than 1,000 points of distribution.

Designer Brands Inc. Reports Third Quarter 2024 Financial Results

According to Circana, U.S. Retail segment footwear sales were inline with the market with key categories outpacing the market including performance, leisure footwear, and dress occasion footwear during the quarter, which helped to partially offset negative boot performance

COLUMBUS, Ohio, Dec. 10, 2024 /PRNewswire/ -- Designer Brands Inc. (NYSE: DBI) (the "Company," "we," "us," "our," and "Designer Brands"), one of the world's largest designers, producers, and retailers of footwear and accessories, today announced financial results for the third quarter ended November 2, 2024.

Doug Howe, Chief Executive Officer stated, "The third quarter started strong, driven by back-to-school season and the success of our athletic and athleisure offerings, bolstering our confidence that we had reached a turning point in our business. However, we had a difficult transition into the fall season, with unseasonably warm weather and ongoing macroeconomic uncertainty placing pressure on consumer discretionary spending, specifically in our seasonal category. As a result, we saw our total Company comparable sales decline 3.1% for the quarter. According to Circana, footwear sales excluding boots remained flat to prior year in the footwear market while U.S. Retail segment sales excluding boots grew 8% versus prior year, outpacing the footwear market results. This gives us further confidence that we are investing our time and resources into the right areas as we continue to transform our business."

Howe continued, "Although external challenges have persisted, I am encouraged by how effectively our business has stayed aligned with our strategic priorities and executing on the things within our control. As we make our way through the fourth quarter, we remain confident in our strategy and our ability to navigate headwinds as we implement a refreshed holiday marketing and merchandising approach. We continue to believe this focus will help us improve performance over the long-term."

Third Quarter Operating Results (Unless otherwise stated, all comparisons are to the third quarter of 2023)

  • Net sales decreased 1.2% to $777.2 million.
  • Total comparable sales decreased by 3.1%.
  • Gross profit decreased to $247.4 million versus $256.4 million last year, and gross profit as a percentage of net sales was 31.8% compared to 32.6% last year.
  • Reported net income attributable to Designer Brands Inc. was $13.0 million, or diluted earnings per share ("EPS") of $0.24.
  • Adjusted net income was $14.5 million, or adjusted diluted EPS of $0.27.

Liquidity

  • Cash and cash equivalents totaled $36.2 million at the end of the third quarter of 2024, compared to $54.6 million at the end of the same period last year, with $118.3 million available for borrowings under our senior secured asset-based revolving credit facility. Debt totaled $536.3 million at the end of the third quarter of 2024 compared to $375.5 million at the end of the same period last year.
  • The Company ended the third quarter with inventories of $637.0 million compared to $601.5 million at the end of the same period last year.

Return to Shareholders

  • During the third quarter of 2024, the Company repurchased 7.7 million Class A common shares at an aggregate cost of $50.6 million. As of November 2, 2024, $19.7 million of Class A common shares remained available for repurchase under the Board-approved share repurchase program.
  • A dividend of $0.05 per share for both Class A and Class B common shares will be paid on December 20, 2024 to shareholders of record at the close of business on December 6, 2024.

Store Openings and Closings

During the third quarter of 2024, the Company closed three stores in the United States ("U.S.") and opened two stores in Canada, resulting in a total of 496 stores in the U.S. and 179 stores in Canada as of November 2, 2024.

Updated 2024 Financial Outlook

The Company has updated the following guidance for the full year 2024:

Metric


Previous Guidance


Current Guidance

Designer Brands Net Sales Growth


Flat to low-single digits


Down low single digits

Adjusted Diluted EPS


$0.50 - $0.60


$0.10 - $0.30

Forward-looking adjusted diluted EPS for 2024 excludes potential charges or gains that may be recorded during the fiscal year, including among other things: (1) restructuring and integration costs, including severance charges; (2) acquisition-related costs; (3) impairment charges; (4) foreign currency transaction losses (gains); (5) the net tax impact of such items; (6) the change in the valuation allowance on deferred tax assets; and (7) net income attributable to redeemable noncontrolling interest. A reconciliation of forward-looking non-GAAP earnings guidance to the comparable GAAP measure is not provided, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K, because the impact and timing of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the Company believes that such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items are uncertain and could have a substantial impact on GAAP measures of our financial performance.

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 0882763 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/0K81jQ0A5Ra 

For those unable to listen to the live webcast, an archived version will be available on the Company's investor website until December 17, 2024. 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: 8250457

Important information may be disseminated initially or exclusively via the Company's investor website; investors should consult the website 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 Crown Vintage, Hush Puppies, Jessica Simpson, Keds, Kelly & Katie, Lucky Brand, Mix No. 6, Topo Athletic, Vince Camuto 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 675 DSW Designer Shoe Warehouse, The Shoe Co., and Rubino 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 more than ten million pairs of shoes to the global non-profit Soles4Souls since 2018. 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 and financial conditions, including economic volatility, supply chain disruptions, new or increased tariffs and other barriers to trade, fluctuating interest rates, inflationary pressures, and the related impacts to consumer discretionary spending, as well as our ability to plan for and respond to the impact of these conditions; our ability to anticipate and respond to rapidly changing consumer preferences, seasonality, customer expectations, and fashion trends; the impact on our consumer traffic and demand, our business operations, and the operations of our suppliers, as we experience unseasonable weather, climate change evolves, and the frequency and severity of weather events increase; our ability to execute on our business strategies, including integrating and growing our Brand Portfolio segment, enhancing in-store and digital shopping experiences, and meeting consumer demands; whether we will be able to successfully and efficiently integrate our recent acquisitions in a manner that does not impede growth; 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; risks related to cyber security threats and privacy or data security breaches or the potential loss or disruption of our information technology ("IT") systems, or those of our vendors; risks related to the implementation of new or updated IT systems; our ability to protect our reputation and to maintain the brands we license; our reliance on our loyalty programs and marketing to drive traffic, sales, and customer loyalty; our ability to successfully integrate new hires or changes in leadership and retain our existing management team, and to continue to attract qualified new personnel; risks related to restrictions imposed by our senior secured asset-based revolving credit facility, as amended ("ABL Revolver"), and our senior secured term loan credit agreement, as amended ("Term Loan"), that could limit our ability to fund our operations; our competitiveness with respect to style, price, brand availability, shopping platforms, and customer service; risks related to our international operations and our reliance on foreign sources for merchandise; our ability to comply with privacy laws and regulations, as well as other legal obligations; 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 Annual Report on Form 10-K for the fiscal year ended February 3, 2024 ("2023 Form 10-K") or our other reports made or filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the time when made. Except as may be required by applicable law, 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)

November 2, 2024


October 28, 2023


Change


Amount


% of
Segment
Net Sales


Amount


% of 
Segment
Net Sales


Amount


%

Segment net sales:












U.S. Retail

$                615,495


75.9 %


$                631,610


78.8 %


$     (16,115)


(2.6) %

Canada Retail

83,504


10.3 %


75,610


9.5 %


7,894


10.4 %

Brand Portfolio

111,492


13.8 %


94,057


11.7 %


17,435


18.5 %

Total segment net sales

810,491


100.0 %


801,277


100.0 %


9,214


1.1 %

Elimination of
intersegment net sales

(33,297)




(14,948)




(18,349)


122.8 %

Consolidated net sales

$                777,194




$                786,329




$       (9,135)


(1.2) %

 


Nine months ended



(dollars in thousands)

November 2, 2024


October 28, 2023


Change


Amount


% of
Segment
Net Sales


Amount


% of
Segment
Net Sales


Amount


%

Segment net sales:












U.S. Retail

$             1,878,556


78.1 %


$             1,903,038


80.2 %


$     (24,482)


(1.3) %

Canada Retail

213,813


8.9 %


199,831


8.4 %


13,982


7.0 %

Brand Portfolio

311,615


13.0 %


271,257


11.4 %


40,358


14.9 %

Total segment net sales

2,403,984


100.0 %


2,374,126


100.0 %


29,858


1.3 %

Elimination of
intersegment net sales

(108,294)




(53,498)




(54,796)


102.4 %

Consolidated net sales

$             2,295,690




$             2,320,628




$     (24,938)


(1.1) %

 

Net Sales by Brand Categories

(in thousands)

U.S. Retail


Canada
Retail(2)


Brand
Portfolio


Eliminations


Consolidated

Three months ended November 2, 2024










Owned Brands:(1)










Direct-to-consumer

$       105,094


$        11,782


$         13,877


$                 —


$       130,753

External customer wholesale, commission
income, and other



64,318



64,318

Intersegment wholesale



33,297


(33,297)


Total Owned Brands

105,094


11,782


111,492


(33,297)


195,071

National brands

510,401


71,722




582,123

Total net sales

$       615,495


$        83,504


$       111,492


$       (33,297)


$       777,194

Three months ended October 28, 2023










Owned Brands:(1)










Direct-to-consumer

$       123,973


$        13,024


$         17,204


$                 —


$       154,201

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


13,024


94,057


(14,948)


216,106

National brands

507,637


62,586




570,223

Total net sales

$       631,610


$        75,610


$         94,057


$       (14,948)


$       786,329

Nine months ended November 2, 2024










Owned Brands:(1)










Direct-to-consumer

$       308,148


$        30,692


$         41,696


$                 —


$       380,536

External customer wholesale, commission
income, and other



161,625



161,625

Intersegment wholesale



108,294


(108,294)


Total Owned Brands

308,148


30,692


311,615


(108,294)


542,161

National brands

1,570,408


183,121




1,753,529

Total net sales

$   1,878,556


$      213,813


$       311,615


$     (108,294)


$   2,295,690

Nine months ended October 28, 2023










Owned Brands:(1)










Direct-to-consumer

$       362,931


$        30,944


$         43,604


$                 —


$       437,479

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


30,944


271,257


(53,498)


611,634

National brands

1,540,107


168,887




1,708,994

Total net sales

$   1,903,038


$      199,831


$       271,257


$       (53,498)


$   2,320,628

(1)

"Owned Brands" refers to those brands that we have rights to sell through ownership or license arrangements.

(2)

Beginning with the 2023 Form 10-K, we are providing a breakout of Canada Retail segment net sales by brand categories and we have recast the three months and the nine months ended October 28, 2023 on a consistent basis.

 

Comparable Sales


Three months ended


Nine months ended


November 2, 2024


October 28, 2023


November 2, 2024


October 28, 2023

Change in comparable sales:








U.S. Retail segment

(2.8) %


(9.8) %


(2.1) %


(10.2) %

Canada Retail segment

(4.6) %


(7.7) %


(4.2) %


(4.8) %

Brand Portfolio segment - direct-to-
consumer channel

(7.5) %


7.0 %


(5.8) %


6.0 %

Total

(3.1) %


(9.3) %


(2.3) %


(9.5) %

 

Store Count

(square footage in thousands)

November 2, 2024


October 28, 2023


Number of
Stores


Square
Footage


Number of
Stores


Square
Footage

U.S. Retail segment - DSW stores

496


9,784


499


9,966

Canada Retail segment:








The Shoe Co. stores

125


638


119


622

DSW stores

26


511


25


496

Rubino Stores

28


149




179


1,298


144


1,118

Total number of stores

675


11,082


643


11,084

 

Gross Profit


Three months ended







(dollars in thousands)

November 2, 2024


October 28, 2023


Change


Amount


% of
Segment
Net Sales


Amount


% of
Segment
Net Sales


Amount


%


Basis
Points

Segment gross profit:














U.S. Retail

$     187,790


30.5 %


$     200,268


31.7 %


$     (12,478)


(6.2) %


(120)

Canada Retail

27,405


32.8 %


26,606


35.2 %


799


3.0 %


(240)

Brand Portfolio

31,313


28.1 %


28,654


30.5 %


2,659


9.3 %


(240)

Total segment gross profit

246,508


30.4 %


255,528


31.9 %


(9,020)


(3.5) %


(150)

Net recognition of intersegment
gross profit

937




878




59





Consolidated gross profit

$     247,445


31.8 %


$     256,406


32.6 %


$       (8,961)


(3.5) %


(80)

 


Nine months ended



(dollars in thousands)

November 2, 2024


October 28, 2023


Change


Amount


% of
Segment
Net Sales


Amount


% of
Segment
Net Sales


Amount


%


Basis
Points

Segment gross profit:














U.S. Retail

$     592,306


31.5 %


$     622,850


32.7 %


$     (30,544)


(4.9) %


(120)

Canada Retail

70,097


32.8 %


67,591


33.8 %


2,506


3.7 %


(100)

Brand Portfolio

91,425


29.3 %


75,037


27.7 %


16,388


21.8 %


160

Total segment gross profit

753,828


31.4 %


765,478


32.2 %


(11,650)


(1.5) %


(80)

Net recognition (elimination) of
intersegment gross profit

(8,400)




2,054




(10,454)





Consolidated gross profit

$     745,428


32.5 %


$     767,532


33.1 %


$     (22,104)


(2.9) %


(60)

 

Intersegment Eliminations


Three months ended

(in thousands)

November 2, 2024


October 28, 2023

Intersegment recognition and elimination activity:




Elimination of net sales recognized by Brand Portfolio segment

$                  (33,297)


$                  (14,948)

Cost of sales:




Elimination of cost of sales recognized by Brand Portfolio segment

23,823


9,857

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

10,411


5,969


$                         937


$                         878

 


Nine months ended

(in thousands)

November 2, 2024


October 28, 2023

Intersegment recognition and elimination activity:




Elimination of net sales recognized by Brand Portfolio segment

$               (108,294)


$                  (53,498)

Cost of sales:




Elimination of cost of sales recognized by Brand Portfolio segment

76,090


38,134

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

23,804


17,418


$                    (8,400)


$                      2,054

 

DESIGNER BRANDS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited and in thousands, except per share amounts)



Three months ended


Nine months ended


November 2,
2024


October 28,
2023


November 2,
2024


October 28,
2023

Net sales

$               777,194


$           786,329


$            2,295,690


$        2,320,628

Cost of sales

(529,749)


(529,923)


(1,550,262)


(1,553,096)

Gross profit

247,445


256,406


745,428


767,532

Operating expenses

(210,457)


(230,788)


(675,904)


(665,437)

Income from equity investments

3,584


2,503


9,019


6,972

Impairment charges

(17,756)



(17,756)


(649)

Operating profit

22,816


28,121


60,787


108,418

Interest expense, net

(11,565)


(8,767)


(34,161)


(22,296)

Non-operating income (expenses), net

(260)


(162)


(512)


83

Income before income taxes

10,991


19,192


26,114


86,205

Income tax benefit (provision)

2,223


(8,987)


2,067


(27,372)

Net income

13,214


10,205


28,181


58,833

Net income attributable to redeemable
noncontrolling interest

(202)


(64)


(562)


(73)

Net income attributable to Designer Brands Inc.

$                 13,012


$              10,141


$                  27,619


$              58,760

Diluted earnings per share attributable to Designer
Brands Inc.

$                     0.24


$                  0.17


$                      0.48


$                  0.90

Weighted average diluted shares

53,486


61,405


57,116


65,292

 

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



November 2, 2024


February 3, 2024


October 28, 2023

ASSETS






Current assets:






Cash and cash equivalents

$                  36,227


$                  49,173


$                  54,638

Receivables, net

70,570


83,590


106,916

Inventories

637,012


571,331


601,470

Prepaid expenses and other current assets

56,864


73,338


36,785

Total current assets

800,673


777,432


799,809

Property and equipment, net

212,206


219,939


224,638

Operating lease assets

707,544


721,335


742,384

Goodwill

130,649


123,759


123,759

Intangible assets, net

85,854


82,827


83,032

Deferred tax assets

39,656


39,067


47,199

Equity investments

53,358


62,857


62,239

Other assets

50,824


49,016


49,518

Total assets

$             2,080,764


$             2,076,232


$             2,132,578

LIABILITIES, REDEEMABLE NONCONTROLLING
INTEREST, AND SHAREHOLDERS' EQUITY






Current liabilities:






Accounts payable

$                238,040


$                289,368


$                310,113

Accrued expenses

167,601


159,622


183,383

Current maturities of long-term debt

6,750


6,750


2,500

Current operating lease liabilities

155,220


166,531


182,259

Total current liabilities

567,611


622,271


678,255

Long-term debt

529,551


420,344


372,965

Non-current operating lease liabilities

644,303


646,161


669,494

Other non-current liabilities

17,521


24,948


21,072

Total liabilities

1,758,986


1,713,724


1,741,786

Redeemable noncontrolling interest

3,272


3,288


3,208

Total shareholders' equity

318,506


359,220


387,584

Total liabilities, redeemable noncontrolling interest, and
shareholders' equity

$             2,080,764


$             2,076,232


$             2,132,578

 

DESIGNER BRANDS INC.

NON-GAAP RECONCILIATION

(unaudited and in thousands, except per share amounts)



Three months ended


Nine months ended


November 2,
2024


October 28,
2023


November 2,
2024


October 28,
2023

Operating expenses

$             (210,457)


$          (230,788)


$             (675,904)


$         (665,437)

Non-GAAP adjustments:








CEO transition costs


1,029



3,983

Restructuring and integration costs

2,936


2,252


10,114


5,190

Acquisition-related costs

82



2,154


1,597

Total non-GAAP adjustments

3,018


3,281


12,268


10,770

Adjusted operating expenses

$              (207,439)


$           (227,507)


$              (663,636)


$          (654,667)

Operating profit

$                 22,816


$              28,121


$                 60,787


$           108,418

Non-GAAP adjustments:








CEO transition costs


1,029



3,983

Restructuring and integration costs

2,936


2,252


10,114


5,190

Acquisition-related costs

82



2,154


1,597

Impairment charges

17,756



17,756


649

Total non-GAAP adjustments

20,774


3,281


30,024


11,419

Adjusted operating profit

$                 43,590


$              31,402


$                 90,811


$           119,837

Net income attributable to Designer Brands Inc.

$                 13,012


$              10,141


$                 27,619


$             58,760

Non-GAAP adjustments:








CEO transition costs


1,029



3,983

Restructuring and integration costs

2,936


2,252


10,114


5,190

Acquisition-related costs

82



2,154


1,597

Impairment charges

17,756



17,756


649

Foreign currency transaction losses (gains)

260


162


512


(83)

Total non-GAAP adjustments before tax effect

21,034


3,443


30,536


11,336

Tax effect on above non-GAAP adjustments

(19,478)


(853)


(22,025)


(2,885)

Discrete and permanent tax on non-deductible
CEO transition costs


907



2,804

Valuation allowance change on deferred tax
assets

(306)


1,109


(348)


(1,615)

Total non-GAAP adjustments, after tax

1,250


4,606


8,163


9,640

Net income attributable to redeemable
noncontrolling interest

202


64


562


73

Adjusted net income

$                  14,464


$              14,811


$                 36,344


$              68,473

Diluted earnings per share

$                      0.24


$                  0.17


$                     0.48


$                  0.90

Adjusted diluted earnings per share

$                      0.27


$                  0.24


$                     0.64


$                  1.05

 

Non-GAAP Measures

To supplement amounts presented in our condensed consolidated financial statements determined in accordance with accounting principles generally accepted in the U.S. ("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; (3) acquisition-related costs; (4) impairment charges; (5) foreign currency transaction losses (gains); (6) the net tax impact of such items (which reflects the determination based on with adjustments and without adjustments approach), including discrete and permanent tax on non-deductible CEO transition costs; (7) the change in the valuation allowance on deferred tax assets; and (8) 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 that 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. For calculating comparable sales in 2024, periods in 2023 are shifted by one week to compare similar calendar weeks. 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. Stores added as a result of the Rubino acquisition that will have been in operation for at least 14 months at the beginning of 2025, along with its e-commerce sales, will be added to the comparable base for the Canada Retail segment beginning with the second quarter of 2025. Comparable sales include the e-commerce net sales of the Brand Portfolio segment from the direct-to-consumer e-commerce sites. 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

SOURCE Designer Brands Inc.

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