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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 1, 2022
Designer Brands Inc.
(Exact name of registrant as specified in its charter)
         
Ohio   001-32545   31-0746639
(State or other Jurisdiction of Incorporation)   (Commission File Number)   (IRS Employer Identification No.)
     
810 DSW Drive, Columbus, Ohio
  43219
(Address of Principal Executive Offices)   (Zip Code)
Registrant’s telephone number, including area code: (614) 237-7100
 
 N/A
(Former name or former address if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Class A Common Shares, without par value DBI New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

Act.    ☐





Item 2.02 Results of Operations and Financial Condition.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange On December 1, 2022, Designer Brands Inc. (the "Company") issued a press release announcing its consolidated financial results for the quarter ended October 29, 2022. A copy of the press release is attached as Exhibit 99.1 hereto and incorporated by reference herein. The Company also posted an infographic, dated December 1, 2022, on the "Investors" section of its investor relations website (investors.designerbrands.com/investor-relations). Copies of the press release and infographic are furnished herewith as Exhibit 99.1 and Exhibit 99.2, respectively. Information on the Company’s website is not, and will not be deemed to be, a part of this Current Report on Form 8-K or incorporated into any other filings the Company may make with the Securities and Exchange Commission.

Pursuant to General Instruction B.2 of Current Report on Form 8-K, the information in this Item 2.02, including Exhibit 99.1 and Exhibit 99.2, is being furnished and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of such section. Furthermore, the information in this Item 2.02 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Number   Description
 
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).



Signature  
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Designer Brands Inc.
By: /s/ Michelle C. Krall
Michelle C. Krall
Senior Vice President, General Counsel and Secretary
Date: December 1, 2022


EX-99.1 2 q320228-kex991pressrelease.htm EX-99.1 Document

Exhibit 99.1

Designer Brands Inc. Reports Third Quarter 2022 Financial Results
Comparable sales up 3.0% on top of comparable sales of 40.8% for the third quarter of 2021
Net sales from our Owned Brands increased 25.0% over the same period last year
In November 2022, received $120.3 million in tax refund reducing debt and increasing liquidity

COLUMBUS, Ohio, December 1, 2022 - 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 three months ended October 29, 2022.

Roger Rawlins, Chief Executive Officer, stated, "We continued to make meaningful progress on our long-term brand building strategy while also delivering solid comparable sales across every segment of our business. Sales of Owned Brands represented 26.5% of total net sales in the third quarter of 2022 compared to 21.5% for the same period last year. The strategic shifts we have made in our business over the past several years are driving a sustainably higher gross margin rate than 2019 as we have a more targeted focus on customer acquisition, optimizing our assortment, and growing the brands we own and control.

"While we are seeing many of the same pressures across the consumer landscape that most retailers are seeing, our flexible business model continues to support our efforts to navigate a dynamic macro environment. We are focused on
meeting our customers' footwear needs while we balance inventory and expenses in order to continue growing market share in this volatile environment."

Third Quarter Operating Results (all comparisons are to the third quarter of 2021)
•Net sales increased 1.4% to $865.0 million.
•Comparable sales increased 3.0%.
•Gross profit decreased to $285.8 million versus $313.6 million last year, and gross margin as a percentage of net sales was 33.0% as compared to 36.7% last year.



•Reported net income was $45.2 million, or diluted earnings per share ("EPS") of $0.65.
•Adjusted net income was $46.1 million, or adjusted diluted EPS of $0.67.

Liquidity Highlights
•Cash and cash equivalents totaled $62.5 million at the end of the third quarter of 2022 compared to $83.1 million at the end of the same period last year, with $130.9 million remaining available for borrowings under our senior secured asset-based revolving credit facility. Debt totaled $415.5 million at the end of the third quarter of 2022 compared to $227.9 million at the end of the same period last year. In November 2022, we received $120.3 million of our income tax receivable from the Internal Revenue Service as a result of the Coronavirus Aid, Relief, and Economic Security Act. We anticipate receiving the remaining income tax receivable within the next twelve months.
•The Company ended the quarter with more normalized inventory levels of $681.8 million compared to $602.1 million at the same period last year with accelerated receipts to support fall season demand.

Return to Shareholders
•During the third quarter of 2022, Designer Brands repurchased 1.3 million Class A common shares (2.0% of Class A and Class B common shares at the beginning of the quarter) at an aggregate cost of $19.1 million under its share repurchase program.
•During the nine months ended October 29, 2022, we repurchased 10.7 million Class A common shares (14.6% of Class A and Class B common shares at the beginning of the fiscal year) at an aggregate cost of $147.5 million, with $187.4 million of Class A common shares that remain authorized under the program as of October 29, 2022.
• A dividend of $0.05 per share of Class A and Class B common shares will be paid on December 28, 2022 to shareholders of record at the close of business on December 13, 2022.

Store Openings and Closings
During the third quarter of 2022, we opened 1 new store and closed 3 stores in the U.S. with no changes to the store count in Canada, resulting in a total of 504 U.S. stores and 138 Canadian stores as of October 29, 2022.




Updated 2022 Financial Outlook
The Company is updating the following guidance for the full year 2022:
Metric Previous Guidance Current Guidance
Designer Brands Comparable Sales Growth Mid-single digits Mid-single digits
Diluted EPS $2.05 - $2.15 $1.75 - $1.80

Webcast and Conference Call
The Company is hosting a conference call today at 8:30 a.m. 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 8112374 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:
https://app.webinar.net/95ZvEx7rpAl

For those unable to listen to the live webcast, an archived version will be available via the same website address until December 15,2022. 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: 5000482




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 by inspiring self-expression across every facet of its enterprise. Through its portfolio of world-class owned brands, led by the industry-setting Vince Camuto brand, Designer Brands delivers on-trend footwear and accessories through its robust direct-to-consumer omni-channel infrastructure, featuring a billion-dollar digital commerce business and nearly 650 stores across the U.S. and Canada. Its retailing operations under the DSW Designer Shoe Warehouse and The Shoe Company banners deliver current, in-line footwear and accessories from most of the largest national brands in the industry and hold leading market share positions in key product categories across Women’s, Men’s and Kid’s in the U.S. and Canada. Designer Brands also distributes its owned brands through select wholesale relationships while leveraging its design and sourcing expertise to build private label product for national retailers. Designer Brands is also committed to being a difference maker in the world, taking steps forward to advance diversity, equity, and inclusion in the footwear industry and supporting our global community and the health of our planet through donating more than six million pairs of shoes to the global non-profit Soles4Souls. More information can be found at 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: risks and uncertainties related to the ongoing coronavirus ("COVID-19") pandemic, any future COVID-19 resurgence, and any other adverse public health developments; risks that recent inflationary pressures, including higher freight costs, could have on our results of operations and customer demand based on pricing actions and operating measures taken to mitigate the impact of inflation; uncertain general economic conditions, including inflation and supply chain pressures, domestic and global political and social conditions and the potential impact of geopolitical turmoil or conflict, and the related impacts to consumer discretionary spending; our ability to execute on our long-term strategic plans; 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 fulfillment center and stores, whether as a result of the COVID-19 pandemic, reliance on third-party providers, or otherwise; our reliance on our loyalty programs and marketing to drive traffic, sales, and customer loyalty; risks related to cyber security threats and privacy or data security breaches or the potential loss or disruption of our information systems; 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, and 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; 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 January 29, 2022 and in our other filings with the Securities and Exchange Commission. All forward-looking statements speak only as of the time when made. Except as may be required by 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) October 29, 2022 October 30, 2021 Change
Amount % of Segment Net Sales Amount % of Segment Net Sales Amount %
Segment net sales:
U.S. Retail $ 706,391  78.8  % $ 709,608  79.9  % $ (3,217) (0.5) %
Canada Retail 82,289  9.2  % 74,792  8.4  % 7,497  10.0  %
Brand Portfolio 107,458  12.0  % 103,919  11.7  % 3,539  3.4  %
Total segment net sales 896,138  100.0  % 888,319  100.0  % 7,819  0.9  %
Elimination of intersegment net sales (31,118) (34,852) 3,734  (10.7) %
Consolidated net sales $ 865,020  $ 853,467  $ 11,553  1.4  %

Nine months ended
(dollars in thousands) October 29, 2022 October 30, 2021 Change
Amount % of Segment Net Sales Amount % of Segment Net Sales Amount %
Segment net sales:
U.S. Retail $ 2,143,199  81.5  % $ 2,053,359  84.2  % $ 89,840  4.4  %
Canada Retail 216,888  8.2  % 172,981  7.1  % 43,907  25.4  %
Brand Portfolio 271,265  10.3  % 211,875  8.7  % 59,390  28.0  %
Total segment net sales 2,631,352  100.0  % 2,438,215  100.0  % 193,137  7.9  %
Elimination of intersegment net sales (76,470) (64,258) (12,212) 19.0  %
Consolidated net sales $ 2,554,882  $ 2,373,957  $ 180,925  7.6  %






Net Sales by Brand Category
(in thousands) U.S. Retail Canada Retail Brand Portfolio Eliminations Consolidated
Three months ended October 29, 2022
Owned Brands:(1)
Direct-to-consumer $ 153,311  $ —  $ 9,810  $ —  $ 163,121 
External customer wholesale and commission income —  —  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 
Three months ended October 30, 2021
Owned Brands:(1)
Direct-to-consumer $ 114,702  $ —  $ 7,726  $ —  $ 122,428 
External customer wholesale and commission income —  —  61,341  —  61,341 
Intersegment wholesale and commission income —  —  34,852  (34,852) — 
Total Owned Brands 114,702  —  103,919  (34,852) 183,769 
National brands 594,906  —  —  —  594,906 
Canada Retail(2)
—  74,792  —  —  74,792 
Total net sales $ 709,608  $ 74,792  $ 103,919  $ (34,852) $ 853,467 
Nine months ended October 29, 2022
Owned Brands:(1)
Direct-to-consumer $ 440,343  $ —  $ 24,130  $ —  $ 464,473 
External customer wholesale and commission income —  —  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 
Nine months ended October 30, 2021
Owned Brands:(1)
Direct-to-consumer $ 300,120  $ —  $ 18,616  $ —  $ 318,736 
External customer wholesale and commission income —  —  129,001  —  129,001 
Intersegment wholesale and commission income —  —  64,258  (64,258) — 
Total Owned Brands 300,120  —  211,875  (64,258) 447,737 
National brands 1,753,239  —  —  —  1,753,239 
Canada Retail(2)
—  172,981  —  —  172,981 
Total net sales $ 2,053,359  $ 172,981  $ 211,875  $ (64,258) $ 2,373,957 

(1)     Owned Brands refers to those brands we have rights to sell through ownership or license arrangements.
(2)    We currently do not report the Canada Retail segment net sales by brand categories.




Comparable Sales
Three months ended Nine months ended
October 29, 2022 October 30, 2021 October 29, 2022 October 30, 2021
Change in comparable sales:
U.S. Retail segment 1.1  % 43.9  % 5.5  % 62.6  %
Canada Retail segment 18.8  % 15.2  % 33.5  % 13.7  %
Brand Portfolio segment - direct-to-consumer channel 27.0  % 50.4  % 29.6  % 22.8  %
Total 3.0  % 40.8  % 7.8  % 57.4  %

Store Count
(square footage in thousands) October 29, 2022 October 30, 2021
Number of Stores Square Footage Number of Stores Square Footage
U.S. Retail segment - DSW stores 504  10,188  515  10,457 
Canada Retail segment:
The Shoe Company stores 113  596  117  617 
DSW stores 25  496  27  536 
138  1,092  144  1,153 
Total number of stores 642  11,280  659  11,610 

Gross Profit
Three months ended
(dollars in thousands)
October 29, 2022 October 30, 2021 Change
Amount % of Segment Net Sales Amount % of Segment Net Sales Amount % Basis Points
Segment gross profit:
U.S. Retail $ 232,058  32.9  % $ 258,059  36.4  % $ (26,001) (10.1) % (350)
Canada Retail 31,298  38.0  % 28,588  38.2  % 2,710  9.5  % (20)
Brand Portfolio 23,839  22.2  % 32,329  31.1  % (8,490) (26.3) % (890)
Total segment gross profit 287,195  32.0  % 318,976  35.9  % (31,781) (10.0) % (390)
Net recognition of intersegment gross profit (1,376) (5,359) 3,983 
Consolidated gross profit $ 285,819  33.0  % $ 313,617  36.7  % $ (27,798) (8.9) % (370)




Nine months ended
(dollars in thousands)
October 29, 2022 October 30, 2021 Change
Amount % of Segment Net Sales Amount % of Segment Net Sales Amount % Basis Points
Segment gross profit:
U.S. Retail $ 716,268  33.4  % $ 708,065  34.5  % $ 8,203  1.2  % (110)
Canada Retail 81,145  37.4  % 58,191  33.6  % 22,954  39.4  % 380 
Brand Portfolio 59,975  22.1  % 52,788  24.9  % 7,187  13.6  % (280)
Total segment gross profit 857,388  32.6  % 819,044  33.6  % 38,344  4.7  % (100)
Net recognition of intersegment gross profit (154) (4,635) 4,481 
Consolidated gross profit $ 857,234  33.6  % $ 814,409  34.3  % $ 42,825  5.3  % (70)

Intersegment Eliminations
Three months ended
(in thousands) October 29, 2022 October 30, 2021
Recognition (elimination) of intersegment activity:
Net sales recognized by Brand Portfolio segment $ (31,118) $ (34,852)
Cost of sales:
Cost of sales recognized by Brand Portfolio segment 21,426  22,950 
Recognition of intersegment gross profit for inventory previously purchased that was subsequently sold to external customers during the current period 8,316  6,543 
$ (1,376) $ (5,359)


Nine months ended
(in thousands) October 29, 2022 October 30, 2021
Recognition (elimination) of intersegment activity:
Net sales recognized by Brand Portfolio segment $ (76,470) $ (64,258)
Cost of sales:
Cost of sales recognized by Brand Portfolio segment 52,149  43,592 
Recognition of intersegment gross profit for inventory previously purchased that was subsequently sold to external customers during the current period 24,167  16,031 
$ (154) $ (4,635)



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

Three months ended Nine months ended
October 29, 2022 October 30, 2021 October 29, 2022 October 30, 2021
Net sales $ 865,020  $ 853,467  $ 2,554,882  $ 2,373,957 
Cost of sales (579,201) (539,850) (1,697,648) (1,559,548)
Gross profit 285,819  313,617  857,234  814,409 
Operating expenses (222,232) (211,909) (674,348) (637,108)
Income from equity investments 2,290  2,600  6,670  6,598 
Impairment charges (1,349) —  (4,237) (1,174)
Operating profit 64,528  104,308  185,319  182,725 
Interest expense, net (4,826) (7,706) (10,530) (24,592)
Loss on extinguishment of debt and write-off of debt issuance costs —  —  (12,862) — 
Non-operating income (expenses), net (152) 172  (109) 734 
Income before income taxes 59,550  96,774  161,818  158,867 
Income tax provision (14,379) (16,590) (44,252) (18,797)
Net income $ 45,171  $ 80,184  $ 117,566  $ 140,070 
Diluted earnings per share $ 0.65  $ 1.04  $ 1.60  $ 1.81 
Weighted average diluted shares 69,140  77,135  73,287  77,216 




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

October 29, 2022 January 29, 2022 October 30, 2021
ASSETS
Current Assets:
Cash and cash equivalents $ 62,507  $ 72,691  $ 83,069 
Receivables, net 228,746  199,826  231,391 
Inventories 681,843  586,429  602,101 
Prepaid expenses and other current assets 53,950  55,270  53,756 
Total current assets 1,027,046  914,216  970,317 
Property and equipment, net 233,515  256,786  263,581 
Operating lease assets 691,032  647,221  664,646 
Goodwill 93,655  93,655  93,655 
Intangible assets, net 19,273  15,527  16,005 
Equity investments 64,246  55,578  56,623 
Other assets 42,611  31,651  29,117 
Total assets $ 2,171,378  $ 2,014,634  $ 2,093,944 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 315,996  $ 340,877  $ 401,280 
Accrued expenses 213,905  215,812  211,017 
Current maturities of long-term debt —  —  62,500 
Current operating lease liabilities 187,619  202,228  206,065 
Total current liabilities 717,520  758,917  880,862 
Long-term debt 415,467  225,536  165,422 
Non-current operating lease liabilities 628,820  593,429  622,273 
Other non-current liabilities 26,059  24,356  31,726 
Total shareholders' equity 383,512  412,396  393,661 
Total liabilities and shareholders' equity $ 2,171,378  $ 2,014,634  $ 2,093,944 




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

Three months ended Nine months ended
October 29, 2022 October 30, 2021 October 29, 2022 October 30, 2021
Operating expenses $ (222,232) $ (211,909) $ (674,348) $ (637,108)
Non-GAAP adjustments:
Restructuring and termination costs 850  —  2,456  2,836 
Target acquisition costs (credits) 400  (2,107) 400  3,226 
Adjusted operating expenses $ (220,982) $ (214,016) $ (671,492) $ (631,046)
Operating profit $ 64,528  $ 104,308  $ 185,319  $ 182,725 
Non-GAAP adjustments:
Restructuring and termination costs 850  —  2,456  2,836 
Target acquisition costs (credits) 400  (2,107) 400  3,226 
Impairment charges 1,349  —  4,237  1,174 
Total non-GAAP adjustments 2,599  (2,107) 7,093  7,236 
Adjusted operating profit $ 67,127  $ 102,201  $ 192,412  $ 189,961 
Net income $ 45,171  $ 80,184  $ 117,566  $ 140,070 
Non-GAAP adjustments:
Restructuring and termination costs 850  —  2,456  2,836 
Target acquisition costs (credits) 400  (2,107) 400  3,226 
Impairment charges
1,349  —  4,237  1,174 
Loss on extinguishment of debt and write-off of debt issuance costs —  —  12,862  — 
Foreign currency transaction losses (gains) 152  (172) 109  (734)
Total non-GAAP adjustments before tax effect 2,751  (2,279) 20,064  6,502 
Tax effect of non-GAAP adjustments (711) 560  (5,085) (1,619)
Valuation allowance change on deferred tax assets (1,070) (11,873) (3,565) (25,450)
Total adjustments, after tax 970  (13,592) 11,414  (20,567)
Adjusted net income $ 46,141  $ 66,592  $ 128,980  $ 119,503 
Diluted earnings per share $ 0.65  $ 1.04  $ 1.60  $ 1.81 
Adjusted diluted earnings per share $ 0.67  $ 0.86  $ 1.76  $ 1.55 











Non-GAAP Measures
To supplement amounts presented in our unaudited condensed 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) restructuring and termination costs; (2) target acquisition costs (credits); (3) impairment charges; (4) loss on extinguishment of debt and write-off of debt issuance costs; (5) foreign currency transaction losses (gains); (6) the net tax effect of such items; and (7) the change in the valuation allowance on deferred tax assets. The unaudited reconciliation of 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 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 on a comparable basis, 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 change in comparable sales from the same previous year period, a primary metric commonly used throughout the retail industry, to be an important indicator of the performance of our retail and direct-to-consumer businesses. We include in our comparable sales metric stores in operation for at least 14 months at the beginning of the fiscal 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 stores temporarily closed as a result of the COVID-19 pandemic as management continues to believe that this metric is meaningful to monitor our performance. Comparable sales also include e-commerce sales. 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 for the Brand Portfolio segment include the direct-to-consumer e-commerce site www.vincecamuto.com.



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

EX-99.2 3 dbi3q22infographicdraft-.htm EX-99.2 dbi3q22infographicdraft-
27% OF DBI NET SALES in 3Q22 VS 22% IN 3Q21 CONTINUED DOUBLE-DIGIT GROWTH WITH MOST PROMINENT BRANDS Crown Vintage Popups – LA & Nashville Crown Vintage Celebrity Partnership – Emma Roberts 5 of TOP 10 selling women’s boot brands were Owned Brands; posted 28% growth compared to 3Q21 Crown Vintage was #1 demanded women’s boot brand Any statements in this infographic that are not historical facts are forward-looking statements and are made by Designer Brands Inc. (the “Company”) pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the Company’s current expectations and involve known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to materially differ from those expressed or implied by the forward-looking statements because of factors discussed in this infographic and in the risk factors section identified in our annual report on Form 10-K for the fiscal year ended January 29, 2022 and in our other reports and filings with the Securities and Exchange Commission. The Company undertakes no obligation to revise the forward-looking statements included in this infographic to reflect any future events or circumstances, except as may be required by law. Supported customer base growth Reacquired ~2M customers Demand up 4% on top of 2% increase in 3Q21 compared to 2019 Grew Kids 2% on top of 40% growth vs 3Q19 last year +3% +25% +33% +19% +8% +370 bps