-- Third quarter Reported EPS of $0.60 per diluted share, including net charges of
$0.07 per diluted share from adjusted
items.
-- Third quarter Adjusted EPS of $0.67 per diluted share.
-- Comparable sales increased 0.3%, delivering a two-year
comparable sales increase of 7.6%.
-- Repurchased 1.0 million shares in the third quarter of fiscal
2019 and 7.1 million shares year to date; returned $263.8 million to shareholders through share
repurchases and dividends over the last 12 months.
-- Board of Directors declared quarterly dividend of
$0.25 per share.
-- Updates outlook for fiscal 2019.
COLUMBUS, Ohio, Dec. 10,
2019 /CNW/ -- Designer Brands Inc. (NYSE: DBI), one of North America's largest designers, producers
and retailers of footwear and accessories, announced financial
results for the three months ended November 2, 2019, compared
to the three months ended November 3, 2018.
Roger Rawlins, Chief Executive
Officer, stated, "We continued to make progress on our strategic
initiatives and the integration of our acquisitions. At the same
time, we faced several meaningful headwinds during the third
quarter that impacted our results and will likely continue for the
upcoming quarters.
The near-record warm weather during our largest and most
profitable quarter affected every segment of our business. And,
while we are extremely proud of the results we've achieved,
substantially mitigating the very material footwear tariffs that
were recently enacted, the mitigation effort itself has had
repercussions which have weighed heavy on our results."
Mr. Rawlins continued, "We took proactive actions to protect our
topline and delivered positive comps in the third quarter. Our
Camuto organization delivered their first positive operating income
contribution in the quarter and the incredible Camuto designed and
sourced exclusive brand product is being delivered to our
warehouses currently and will be customer facing in just a few
weeks. And I am excited to see Canada continue to strongly leverage the
expertise and infrastructure from our US business as they delivered
another stellar quarter."
"We are continuously seeking ways to increase our market share,"
Mr. Rawlins concluded, "all while reducing costs across our entire
organization and mitigating tariffs. We continue to believe our
ability to operate a fully integrated supply chain will yield
significant benefit and enable us to better compete across all
channels and creates a long runway for growth, and in turn,
long-term value for our shareholders."
Third Quarter Operating Results
- Total revenue increased by 12.4%, including $137.5 million in revenue from the Brand
Portfolio segment, which includes $25.6
million in intersegment revenue that is eliminated in
consolidation.
- Comparable sales increased 0.3% for third quarter of fiscal
2019 compared to a 7.3% increase in the third quarter of fiscal
2018.
- Reported gross profit, as a percent of net sales, decreased by
370 bps primarily driven by lower margins in the U.S. Retail
segment due to being more promotional and higher shipping costs in
the current year associated with higher digital penetration,
partially offset by higher margins in the Canada Retail segment due
to lower clearance activity and improved leverage in occupancy
costs.
- Reported operating expenses, as a percent of revenue, decreased
by 400 bps, driven by lower incentive compensation, the impact of
lease exit charges, acquisition-related costs and restructuring
charges in the prior year, and lower marketing investments,
partially offset by the impact of including Camuto Group in the
consolidated results.
- Reported net income was $43.5
million, or $0.60 per diluted
share, including pre-tax charges totaling $6.9 million, or $0.07 per diluted share, primarily from
impairment charges and integration and restructuring expenses.
- Adjusted net income was $48.6
million, or $0.67 per diluted
share.
Nine Months Operating Results
- Total revenue increased by 14.3%, including $345.0 million in revenue from the Brand
Portfolio segment, which includes $53.8
million in intersegment revenue that is eliminated in
consolidation.
- Comparable sales increased 0.8% compared to last year's 6.3%
increase.
- Reported gross profit, as a percent of net sales, decreased by
190 bps.
- Reported operating expenses, as a percent of revenue, decreased
by 30 bps.
- Reported net income was $102.1
million, or $1.36 per diluted
share, including pre-tax charges totaling $19.3 million, or $0.21 per diluted share, primarily from
impairment charges and integration and restructuring expenses.
- Adjusted net income was $117.9
million, or $1.57 per diluted
share.
Balance Sheet Highlights
- Cash and investments totaled $113.8
million compared to $294.3
million at the end of the third quarter last year, and debt
totaled $235.0 million compared to no
debt outstanding at the end of the third quarter last year,
reflecting the funding of the two acquisitions in fiscal 2018 and
share repurchase activity.
- The Company ended the quarter with inventories of $677.7 million compared to $624.2 million last year. Excluding inventories
from the acquisitions, inventories per square foot decreased 5.6%
to last year.
- During fiscal 2019, the Company repurchased 7.1 million shares
for a total of $141.6 million with
$334.9 million remaining under its
share repurchase program.
Regular Dividend
The Company's Board of Directors declared a quarterly cash
dividend of $0.25 per share. The
dividend will be paid on January 3, 2020 to shareholders of
record at the close of business on December 20, 2019.
Fiscal 2019 Annual Outlook
The Company lowered its full year outlook for Adjusted EPS in
the range of $1.50 to $1.55 per diluted share, compared to its previous
range of $1.87 to $1.97 per diluted share.
Comparison of Current to Previous Outlook
|
Current
Outlook
|
|
Previous
Outlook
|
Revenue
outlook
|
Low double-digit
growth
|
|
Low double-digit
growth
|
Comparable sales
growth
|
Flat
|
|
Low single-digit
growth
|
Tax rate
|
24%
|
|
27%
|
Shares
outstanding
|
75 million
|
|
77 million
|
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
888-317-6003, or the international dial in, 412-317-6061, and
reference conference ID number 9385506 approximately ten minutes
prior to the start of the call. The conference call will also be
broadcast live over the internet and can be accessed through the
following link:
https://www.webcaster4.com/Webcast/Page/1213/32301
For those unable to listen to the live webcast, an archived
version will be available at the same location until December 24, 2019. 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: 10136875
About Designer Brands
Designer Brands is one of North
America's largest designers, producers and retailers of
footwear and accessories. The Company operates a portfolio of
retail concepts in nearly 1,000 locations under the DSW Designer
Shoe Warehouse®, The Shoe Company®, and Shoe Warehouse® banners and
services footwear departments in the U.S. through its Affiliated
Business Group ("ABG"). Designer Brands designs and produces
footwear and accessories through Camuto Group, a leading
manufacturer selling in more than 5,400 doors worldwide. Camuto
Group owns licensing rights for the Jessica Simpson® footwear
business, and footwear and handbag licenses for Lucky Brand® and
Max Studio®. In partnership with a joint venture with Authentic
Brands Group, Designer Brands also owns a stake in Vince Camuto®,
Louise et Cie®, Sole Society®, CC Corso Como®, Enzo Angiolini® and
others. More information can be found
at www.designerbrands.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
Any statements in this release that are not historical facts are
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," "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 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: our success in growing our store base and digital
demand; our ability to successfully integrate recently acquired
businesses or realize the anticipated benefits of the acquisitions
after we complete our integration efforts; our ability to protect
our reputation and to maintain the brands we license; maintaining
strong relationships with our vendors, manufacturers and wholesale
customers; our ability to anticipate and respond to fashion trends,
consumer preferences and changing customer expectations; risks
related to the loss or disruption of our distribution and/or
fulfillment operations; continuation of agreements with and our
reliance on the financial condition of Stein Mart; our ability to execute our
strategies; fluctuation of our comparable sales and quarterly
financial performance; risks related to the loss or disruption of
our information systems and data; our ability to prevent or
mitigate breaches of our information security and the compromise of
sensitive and confidential data; failure to retain our key
executives or attract qualified new personnel; our reliance on our
loyalty programs and marketing to drive traffic, sales and customer
loyalty; risks related to leases of our properties; our
competitiveness with respect to style, price, brand availability
and customer service; our reliance on foreign sources for
merchandise and risks inherent to international trade; the
imposition of new tariffs on our products; exposure to foreign tax
contingencies; uncertainty related to future legislation,
regulatory reform, policy changes, or interpretive guidance on
existing legislation; uncertain general economic conditions; risks
related to holdings of cash and investments and access to
liquidity; and fluctuations in foreign currency exchange rates.
Additional factors that could cause our actual results to differ
materially from our expectations are described in the Company's
latest annual or quarterly report, as 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
revise the forward-looking statements included in this press
release to reflect any future events or circumstances.
DESIGNER BRANDS
INC.
|
SEGMENT
RESULTS
|
(unaudited)
|
|
Revenue
|
|
Three months
ended
|
|
Change
|
(dollars in
thousands)
|
November 2,
2019
|
|
November 3,
2018
|
|
Amount
|
|
%
|
|
Comparable Sales
%
|
Segment net
sales:
|
|
|
|
|
|
|
|
|
|
U.S. Retail
|
$
|
716,775
|
|
$
|
721,746
|
|
$
|
(4,971)
|
|
(0.7)
|
%
|
|
—%
|
Canada
Retail
|
76,299
|
|
80,072
|
|
(3,773)
|
|
(4.7)
|
%
|
|
4.4%
|
Brand
Portfolio
|
130,582
|
|
—
|
|
130,582
|
|
NM
|
|
|
NA
|
Other
|
28,848
|
|
29,851
|
|
(1,003)
|
|
(3.4)
|
%
|
|
(2.4)%
|
Total segment net
sales
|
952,504
|
|
831,669
|
|
120,835
|
|
14.5
|
%
|
|
0.3%
|
Commission, franchise
and other revenue
|
9,352
|
|
1,334
|
|
8,018
|
|
601.0
|
%
|
|
|
|
961,856
|
|
833,003
|
|
128,853
|
|
15.5
|
%
|
|
|
Elimination of
intersegment revenue
|
(25,592)
|
|
—
|
|
(25,592)
|
|
NM
|
|
|
|
Consolidated total
revenue
|
$
|
936,264
|
|
$
|
833,003
|
|
$
|
103,261
|
|
12.4
|
%
|
|
|
|
Nine months
ended
|
|
Change
|
(dollars in
thousands)
|
November 2,
2019
|
|
November 3,
2018
|
|
Amount
|
|
%
|
|
Comparable Sales
%
|
Segment net
sales:
|
|
|
|
|
|
|
|
|
|
U.S. Retail
|
$
|
2,086,535
|
|
$
|
2,083,287
|
|
$
|
3,248
|
|
0.2
|
%
|
|
0.5%
|
Canada
Retail
|
191,421
|
|
152,604
|
|
38,817
|
|
25.4
|
%
|
|
6.1%
|
Brand
Portfolio
|
326,871
|
|
—
|
|
326,871
|
|
NM
|
|
NA
|
Other
|
93,935
|
|
99,950
|
|
(6,015)
|
|
(6.0)
|
%
|
|
0.9%
|
Total segment net
sales
|
2,698,762
|
|
2,335,841
|
|
362,921
|
|
15.5
|
%
|
|
0.8%
|
Commission, franchise
and other revenue
|
30,028
|
|
4,532
|
|
25,496
|
|
562.6
|
%
|
|
|
|
2,728,790
|
|
2,340,373
|
|
388,417
|
|
16.6
|
%
|
|
|
Elimination of
intersegment revenue
|
(53,813)
|
|
—
|
|
(53,813)
|
|
NM
|
|
|
Consolidated total
revenue
|
$
|
2,674,977
|
|
$
|
2,340,373
|
|
$
|
334,604
|
|
14.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NA - Not
applicable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store
Data
|
|
November 2,
2019
|
|
November 3,
2018
|
(square footage in
thousands)
|
Number of
Stores
|
|
Square
Footage
|
|
Number of
Stores
|
|
Square
Footage
|
U.S. Retail segment -
DSW Designer Shoe Warehouse
|
521
|
|
10,579
|
|
519
|
|
10,582
|
Canada Retail
segment:
|
|
|
|
|
|
|
|
The Shoe Company / Shoe
Warehouse
|
119
|
|
638
|
|
111
|
|
613
|
Town Shoes
|
—
|
|
—
|
|
34
|
|
—
|
DSW Designer Shoe
Warehouse
|
27
|
|
535
|
|
27
|
|
535
|
|
146
|
|
1,173
|
|
172
|
|
1,148
|
Total operating
stores
|
667
|
|
11,752
|
|
691
|
|
11,730
|
ABG stores
serviced
|
283
|
|
|
|
287
|
|
|
Gross
Profit(1)
|
|
Three months
ended
|
|
|
|
November 2,
2019
|
|
November 3,
2018
|
|
Change
|
(dollars in
thousands)
|
Amount
|
|
% of
Segment
Net Sales
|
|
Amount
|
|
% of
Segment
Net Sales
|
|
Amount
|
|
%
|
|
Basis
Points
|
Segment gross
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Retail
|
$
|
201,409
|
|
28.1
|
%
|
|
$
|
239,650
|
|
33.2
|
%
|
|
$
|
(38,241)
|
|
(16.0)
|
%
|
|
(510)
|
Canada
Retail
|
27,485
|
|
36.0
|
%
|
|
25,364
|
|
31.7
|
%
|
|
$
|
2,121
|
|
8.4
|
%
|
|
430
|
Brand
Portfolio
|
33,936
|
|
26.0
|
%
|
|
—
|
|
—
|
%
|
|
$
|
33,936
|
|
NM
|
|
|
NM
|
Other
|
6,291
|
|
21.8
|
%
|
|
6,069
|
|
20.3
|
%
|
|
$
|
222
|
|
3.7
|
%
|
|
150
|
|
269,121
|
|
|
|
271,083
|
|
|
|
|
|
|
|
|
Intercompany
eliminations
|
(1,031)
|
|
|
|
—
|
|
|
|
|
|
|
|
|
Consolidated gross
profit
|
$
|
268,090
|
|
28.9
|
%
|
|
$
|
271,083
|
|
32.6
|
%
|
|
$
|
(2,993)
|
|
(1.1)
|
%
|
|
(370)
|
|
Nine months
ended
|
|
|
|
November 2,
2019
|
|
November 3,
2018
|
|
Change
|
(dollars in
thousands)
|
Amount
|
|
% of
Segment
Net Sales
|
|
Amount
|
|
% of
Segment
Net Sales
|
|
Amount
|
|
%
|
|
Basis
Points
|
Segment gross
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Retail
|
$
|
619,356
|
|
29.7
|
%
|
|
$
|
667,595
|
|
32.0
|
%
|
|
$
|
(48,239)
|
|
(7.2)
|
%
|
|
(230)
|
Canada
Retail
|
65,171
|
|
34.0
|
%
|
|
43,582
|
|
28.6
|
%
|
|
$
|
21,589
|
|
49.5
|
%
|
|
540
|
Brand
Portfolio
|
75,191
|
|
23.0
|
%
|
|
—
|
|
—
|
%
|
|
$
|
75,191
|
|
NM
|
|
|
NM
|
Other
|
21,643
|
|
23.0
|
%
|
|
19,626
|
|
19.6
|
%
|
|
$
|
2,017
|
|
10.3
|
%
|
|
340
|
|
781,361
|
|
|
|
730,803
|
|
|
|
|
|
|
|
|
Intercompany
eliminations
|
(2,374)
|
|
|
|
—
|
|
|
|
|
|
|
|
|
Consolidated gross
profit
|
$
|
778,987
|
|
29.4
|
%
|
|
$
|
730,803
|
|
31.3
|
%
|
|
$
|
48,184
|
|
6.6
|
%
|
|
(190)
|
|
|
(1)
|
Gross profit is
defined as net sales, which excludes commission, franchise and
other revenue, less cost of sales.
|
Intersegment
Eliminations
|
|
Three months
ended
|
(in
thousands)
|
November 2,
2019
|
|
November 3,
2018
|
Elimination of
intersegment activity:
|
|
|
|
Net sales recognized by
Brand Portfolio segment
|
$
|
(23,896)
|
|
$
|
—
|
Cost of
sales:
|
|
|
|
Cost of sales
recognized by Brand Portfolio segment
|
17,363
|
|
—
|
Recognition of
intersegment gross profit for inventory previously purchased
that was subsequently sold to external customers during the current
period
|
5,502
|
|
—
|
Gross profit
|
(1,031)
|
|
—
|
Commission
income
|
(1,696)
|
|
—
|
Total eliminations of
intersegment activity
|
$
|
(2,727)
|
|
$
|
—
|
|
Nine months
ended
|
(in
thousands)
|
November 2,
2019
|
|
November 3,
2018
|
Elimination of
intersegment activity:
|
|
|
|
Net sales recognized by
Brand Portfolio segment
|
$
|
(50,522)
|
|
$
|
—
|
Cost of
sales:
|
|
|
|
Cost of sales
recognized by Brand Portfolio segment
|
39,281
|
|
—
|
Recognition of
intersegment gross profit for inventory previously purchased
that was subsequently sold to external customers during the current
period
|
8,867
|
|
—
|
Gross profit
|
(2,374)
|
|
—
|
Commission
income
|
(3,291)
|
|
—
|
Total eliminations of
intersegment activity
|
$
|
(5,665)
|
|
$
|
—
|
DESIGNER BRANDS
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(unaudited and in
thousands)
|
|
|
|
|
|
|
|
November 2,
2019
|
|
February 2,
2019
|
|
November 3,
2018
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
87,838
|
|
$
|
99,369
|
|
$
|
222,419
|
Investments
|
25,939
|
|
69,718
|
|
71,848
|
Accounts receivable,
net
|
87,313
|
|
68,870
|
|
14,902
|
Inventories
|
677,696
|
|
645,317
|
|
624,167
|
Prepaid expenses and
other current assets
|
48,077
|
|
71,945
|
|
49,924
|
Total current
assets
|
926,863
|
|
955,219
|
|
983,260
|
Property and
equipment, net
|
394,695
|
|
409,576
|
|
383,110
|
Operating lease
assets
|
950,514
|
|
—
|
|
—
|
Goodwill
|
113,644
|
|
89,513
|
|
25,899
|
Intangible
assets
|
23,297
|
|
46,129
|
|
20,000
|
Deferred tax
assets
|
39,452
|
|
30,283
|
|
42,966
|
Equity investment in
ABG-Camuto
|
54,964
|
|
58,125
|
|
—
|
Other
assets
|
33,549
|
|
31,739
|
|
19,394
|
Total
assets
|
$
|
2,536,978
|
|
$
|
1,620,584
|
|
$
|
1,474,629
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Accounts
payable
|
$
|
266,335
|
|
$
|
261,625
|
|
$
|
198,499
|
Accrued
expenses
|
190,897
|
|
201,535
|
|
182,964
|
Current operating
lease liabilities
|
184,598
|
|
—
|
|
—
|
Total current
liabilities
|
641,830
|
|
463,160
|
|
381,463
|
Debt
|
235,000
|
|
160,000
|
|
—
|
Non-current operating
lease liabilities
|
880,883
|
|
—
|
|
—
|
Other non-current
liabilities
|
36,084
|
|
165,047
|
|
150,730
|
Total
liabilities
|
1,793,797
|
|
788,207
|
|
532,193
|
Total shareholders'
equity
|
743,181
|
|
832,377
|
|
942,436
|
Total liabilities and
shareholders' equity
|
$
|
2,536,978
|
|
$
|
1,620,584
|
|
$
|
1,474,629
|
DESIGNER BRANDS
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(unaudited and in
thousands, except per share amounts)
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
November 2,
2019
|
|
November 3,
2018
|
|
November 2,
2019
|
|
November 3,
2018
|
Revenue:
|
|
|
|
|
|
|
|
Net sales
|
$
|
928,608
|
|
$
|
831,669
|
|
$
|
2,648,240
|
|
$
|
2,335,841
|
Commission, franchise
and other revenue
|
7,656
|
|
1,334
|
|
26,737
|
|
4,532
|
Total
revenue
|
936,264
|
|
833,003
|
|
2,674,977
|
|
2,340,373
|
Cost of
sales
|
(660,518)
|
|
(560,586)
|
|
(1,869,253)
|
|
(1,605,038)
|
Operating
expenses
|
(217,476)
|
|
(226,491)
|
|
(666,898)
|
|
(590,230)
|
Income from equity
investment in ABG-
Camuto
|
2,662
|
|
—
|
|
7,354
|
|
—
|
Impairment
adjustments (charges)
|
(4,824)
|
|
7,163
|
|
(4,824)
|
|
(29,077)
|
Operating
profit
|
56,108
|
|
53,089
|
|
141,356
|
|
116,028
|
Interest income
(expense), net
|
(2,174)
|
|
870
|
|
(5,947)
|
|
2,339
|
Non-operating income
(expenses), net
|
15
|
|
(108)
|
|
(128)
|
|
(49,594)
|
Income before income
taxes and loss from
equity investment in TSL
|
53,949
|
|
53,851
|
|
135,281
|
|
68,773
|
Income tax
provision
|
(10,489)
|
|
(14,532)
|
|
(33,220)
|
|
(42,203)
|
Loss from equity
investment in TSL
|
—
|
|
—
|
|
—
|
|
(1,310)
|
Net income
|
$
|
43,460
|
|
$
|
39,319
|
|
$
|
102,061
|
|
$
|
25,260
|
Diluted earnings per
share
|
$
|
0.60
|
|
$
|
0.48
|
|
$
|
1.36
|
|
$
|
0.31
|
Weighted average
diluted shares
|
72,947
|
|
82,287
|
|
75,149
|
|
81,686
|
DESIGNER BRANDS
INC.
|
NON-GAAP
RECONCILIATION
|
(unaudited and in
thousands, except per share amounts)
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
November 2,
2019
|
|
November 3,
2018
|
|
November 2,
2019
|
|
November 3,
2018
|
Reported net
income
|
$
|
43,460
|
|
$
|
39,319
|
|
$
|
102,061
|
|
$
|
25,260
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
Included in operating
expenses:
|
|
|
|
|
|
|
|
Lease exit and other
termination costs
|
—
|
|
16,301
|
|
—
|
|
20,704
|
Acquisition-related
costs and target acquisition costs
|
—
|
|
12,982
|
|
—
|
|
18,594
|
Integration and
restructuring expenses
|
1,465
|
|
563
|
|
13,574
|
|
3,271
|
Amortization of
intangible assets
|
617
|
|
115
|
|
664
|
|
229
|
Impairment charges
(adjustments)
|
4,824
|
|
(7,163)
|
|
4,824
|
|
29,077
|
Included in
non-operating income (expenses), net:
|
|
|
|
|
|
|
|
Fair value adjustments
of TSL's previously held assets
|
—
|
|
—
|
|
—
|
|
33,988
|
Foreign currency
transaction losses
|
9
|
|
94
|
|
216
|
|
15,390
|
Total pre-tax
adjustments
|
6,915
|
|
22,892
|
|
19,278
|
|
121,253
|
Tax effect of
adjustments
|
(1,789)
|
|
(4,302)
|
|
(3,394)
|
|
(8,475)
|
Tax expense impact as
a result of Ebuys exit
|
—
|
|
—
|
|
—
|
|
2,265
|
Total adjustments,
after tax
|
5,126
|
|
18,590
|
|
15,884
|
|
115,043
|
Adjusted net
income
|
$
|
48,586
|
|
$
|
57,909
|
|
$
|
117,945
|
|
$
|
140,303
|
Reported diluted
earnings per share
|
$
|
0.60
|
|
$
|
0.48
|
|
$
|
1.36
|
|
$
|
0.31
|
Adjusted diluted
earnings per share
|
$
|
0.67
|
|
$
|
0.70
|
|
$
|
1.57
|
|
$
|
1.72
|
Non-GAAP Measures
In addition to diluted earnings per share and net income
determined in accordance with accounting principles generally
accepted in the United States
("GAAP"), the Company uses adjusted diluted earnings per share and
adjusted net income, which adjust for the effects of (i) lease exit
and other termination costs; (ii) acquisition-related costs and
target acquisition costs; (iii) integration and restructuring
expenses; (iv) amortization expense of intangible assets; (v)
impairment charges and adjustments; (vi) fair value adjustments of
Town Shoes Limited's ("TSL") previously held assets; (vii) foreign
currency transaction losses (gains); and (viii) the net tax expense
impact of such items and the net tax expense impact as a result of
the Ebuys exit. 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 the
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.
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content:http://www.prnewswire.com/news-releases/designer-brands-inc-reports-third-quarter-2019-financial-results-300971827.html
SOURCE Designer Brands Inc.