Net sales improved 33% on a sequential basis versus second
quarter
Athletic comparable sales in the U.S. Retail segment were up 5%
in third quarter, above the 4% increase in the second quarter,
outpacing results for seasonal products
COLUMBUS, Ohio, Dec. 9, 2020 /PRNewswire/ -- Designer Brands
Inc. (NYSE: DBI) (the "Company"), one of North America's largest designers, producers
and retailers of footwear and accessories, announced financial
results for the three months ended October 31, 2020, compared
to the three months ended November 2, 2019.
Roger Rawlins, Chief Executive
Officer, said, "Designer Brands delivered sequential improvement
across all of our metrics in the third quarter by successfully
leveraging our flexible business model to align with consumer
preferences. We have been shifting our assortment to include more
athletic and kids product, as well as items from the Top 10 brands
in footwear, and see further opportunity to meaningfully grow these
categories. Our investment in these areas has resulted in athletic
penetration in our U.S. retail business increasing to 26% at the
end of the third quarter, up from 17% last year, and kids
penetration has grown to 10% from 7% last year. During the quarter,
athletic comparable sales turned positive at DSW, growing 5%,
outperforming the market and supporting our strategic decision to
pivot in this environment."
Mr. Rawlins continued, "Fundamentally, our customers know
Designer Brands as a dress and seasonal house. As they continue to
work from home and avoid large social events, the balance of our
assortment will remain challenged. We are pleased to see that a
vaccine may be on the horizon, but widespread adoption will take
time and our business will continue to feel pressure in the
near-term. We have confidence there will be a day our customers
feel comfortable going out again, and, when that time comes, we
will reap the benefits of the combination of our legacy command of
the dress and seasonal market coupled with recent gains we are
making in athletic and kids."
Third Quarter Operating Results
- Net sales decreased 30.1% to $652.9
million in the third quarter of fiscal 2020 compared to the
same period last year.
- Comparable sales decreased 30.4% for the third quarter of
fiscal 2020 compared to a 0.3% increase in the third quarter of
fiscal 2019.
- Gross profit decreased $107.7
million to $165.7 million in
the third quarter of fiscal 2020 versus $273.3 million last year, and gross margin as a
percentage of net sales was 25.4% as compared to 29.3% in the third
quarter of fiscal 2019. The decrease in gross profit was primarily
driven by the significant reduction in customer traffic with the
continuing impact of COVID-19. The decline in gross margin during
the period was also a result of continued elevated markdown
activity in addition to the increase in shipping expense and
deleverage on occupancy, fixed distribution costs, and royalty
expense related to the decline in sales.
- Reported operating expenses were down 8.8% to $196.1 million versus last year and the reported
operating expenses as a percentage of net sales was 30.1%, above
last year's level of 23.1%, due to a significantly lower sales
volume.
- Reported net loss was $40.6
million, or $0.56 loss per
diluted share, including net charges of $0.30 per diluted share from adjusted items
primarily related to impairment charges.
- Adjusted net loss was $19.0
million, or $0.26 loss per
diluted share.
Liquidity Highlights
- Cash and investments totaled $114.5
million at the end of the third quarter of fiscal 2020,
compared to $113.8 million for the
same period last year, with $295.0
million available for borrowings under our ABL Revolver.
Debt totaled $274.6 million at the
end of the third quarter of fiscal 2020 compared to $235.0 million debt outstanding for the same
period last year.
- The Company ended the quarter with inventories of $546.0 million, down 19% compared to the same
period last year, primarily due to strong inventory controls and
higher inventory reserves versus the prior year.
Store Openings and Closings
During the third quarter
of fiscal 2020, we opened four stores and closed two in the U.S.
resulting in a total of 524 U.S. stores. In Canada, we opened one store with no
closures resulting in a total of 145 Canadian stores.
2020 Guidance
We continue to monitor and evaluate the
impact of the COVID-19 pandemic and, given the prolonged
uncertainty surrounding the impacts of COVID-19, the Company is not
providing guidance at this time.
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 8509121
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/1213/38606
For those unable to listen to the live webcast, an archived
version will be available via the same website address until
December 23, 2020. 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: 10149800
About Designer Brands
Designer Brands Inc. 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 700 locations
under the DSW Designer Shoe Warehouse®, The Shoe Company®, and Shoe
Warehouse® banners. The Company designs and produces footwear
and accessories through Camuto Group, a leading manufacturer
selling in more than 5,400 stores 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, the
Company also owns a stake in Vince Camuto®, Louise et Cie®, 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. In many cases, you can identify
these forward-looking statements by the use of forward-looking
words such as "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 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 uncertainty related to the continued outbreak
of the coronavirus disease ("COVID-19"), any future COVID-19
resurgence, and any other adverse public health developments; our
ability to protect the health and safety of our employees and our
customers, which may be affected by current or future government
regulations related to stay-at-home orders and orders related to
the operation of non-essential businesses; risks related to our
holdings of cash and investments and access to liquidity and the
financial markets on terms that are favorable to us, if at all;
risks related to our international operations, including
international trade, our reliance on foreign sources for
merchandise, exposure to foreign tax contingencies, and
fluctuations in foreign currency exchange rates; maintaining strong
relationships with our vendors, manufacturers, licensors, and
retailer customers; our ability to successfully integrate acquired
businesses or realize the anticipated benefits of the acquisitions
after we complete our integration efforts; risks related to losses
or disruptions associated with our distribution systems, including
our distribution and fulfillment centers and our stores, whether as
a result of COVID-19, reliance on third-party providers, or
otherwise; our reliance on our loyalty programs and marketing to
drive traffic, sales and customer loyalty; our ability to
anticipate and respond to fashion trends, consumer preferences and
changing customer expectations; failure to retain our key
executives or attract qualified new personnel; risks related to the
loss or disruption of our information systems and data and our
ability to prevent or mitigate breaches of our information security
and the compromise of sensitive and confidential data; risks
associated with remote working arrangements; our ability to comply
with privacy laws and regulations, as well as other legal
obligations; the effect of Stein Mart Inc. filing for relief under
Chapter 11 of the United States Bankruptcy Code; our success in
growing our store base and digital demand; our ability to protect
our reputation and to maintain the brands we license; our ability
to execute our strategies; seasonality of our business and
fluctuation of our comparable sales and quarterly financial
performance; uncertain general economic, political and social
conditions and the related impacts to consumer discretionary
spending; our competitiveness with respect to style, price, brand
availability and customer service; the imposition of increased or
new tariffs on our products; risks related to our qualification
under the Coronavirus Aid, Relief, and Economic Security Act for
payroll tax credits and deferral of payroll taxes in the U.S., as
well as other similar regulations in Canada; and uncertainty related to future
legislation, regulatory reform, policy changes, or interpretive
guidance on existing legislation. Additional factors that could
cause our actual results to differ materially from our expectations
are described in the Company's Annual Report on Form 10-K for the
fiscal year ended February 1, 2020,
as amended, our Forms 10-Q for the fiscal quarter ended
May 2, 2020 and August 1, 2020 and risk factors identified in the
Company's other filings 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, except as may be
required by law.
DESIGNER BRANDS
INC.
SEGMENT
RESULTS
(unaudited)
|
|
Net
Sales
|
|
Three months
ended
|
|
Change
|
(dollars in
thousands)
|
October 31,
2020
|
|
November 2,
2019
|
|
Amount
|
|
%
|
|
Comparable Sales
%
|
Segment net
sales:
|
|
|
|
|
|
|
|
|
|
U.S. Retail
|
$
|
501,901
|
|
|
$
|
716,775
|
|
|
$
|
(214,874)
|
|
|
(30.0)%
|
|
(31.9)%
|
Canada
Retail
|
61,598
|
|
|
76,299
|
|
|
(14,701)
|
|
|
(19.3)%
|
|
(18.7)%
|
Brand
Portfolio
|
83,905
|
|
|
137,496
|
|
|
(53,591)
|
|
|
(39.0)%
|
|
13.4%
|
Other
|
27,020
|
|
|
28,848
|
|
|
(1,828)
|
|
|
(6.3)%
|
|
NA
|
Total segment net
sales
|
674,424
|
|
|
959,418
|
|
|
(284,994)
|
|
|
(29.7)%
|
|
(30.4)%
|
Elimination of
intersegment net sales
|
(21,554)
|
|
|
(25,592)
|
|
|
4,038
|
|
|
(15.8)%
|
|
|
Net sales
|
$
|
652,870
|
|
|
$
|
933,826
|
|
|
$
|
(280,956)
|
|
|
(30.1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NA - Not
applicable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
Change
|
(dollars in
thousands)
|
October 31,
2020
|
|
November 2,
2019
|
|
Amount
|
|
%
|
|
Comparable Sales
%
|
Segment net
sales:
|
|
|
|
|
|
|
|
|
|
U.S. Retail
|
$
|
1,272,951
|
|
|
$
|
2,086,535
|
|
|
$
|
(813,584)
|
|
|
(39.0)%
|
|
(39.6)%
|
Canada
Retail
|
140,509
|
|
|
191,421
|
|
|
(50,912)
|
|
|
(26.6)%
|
|
(25.5)%
|
Brand
Portfolio
|
196,476
|
|
|
344,989
|
|
|
(148,513)
|
|
|
(43.0)%
|
|
61.4%
|
Other
|
62,909
|
|
|
93,935
|
|
|
(31,026)
|
|
|
(33.0)%
|
|
(50.4)%
|
Total segment net
sales
|
1,672,845
|
|
|
2,716,880
|
|
|
(1,044,035)
|
|
|
(38.4)%
|
|
(38.4)%
|
Elimination of
intersegment net sales
|
(47,478)
|
|
|
(53,813)
|
|
|
6,335
|
|
|
(11.8)%
|
|
|
Net sales
|
$
|
1,625,367
|
|
|
$
|
2,663,067
|
|
|
$
|
(1,037,700)
|
|
|
(39.0)%
|
|
|
Store
Data
|
|
October 31,
2020
|
|
November 2,
2019
|
(square footage in
thousands)
|
Number of
Stores
|
|
Square
Footage
|
|
Number of
Stores
|
|
Square
Footage
|
U.S. Retail segment -
DSW Designer Shoe Warehouse
|
524
|
|
|
10,633
|
|
|
521
|
|
|
10,579
|
|
Canada Retail
segment:
|
|
|
|
|
|
|
|
The Shoe Company / Shoe
Warehouse
|
118
|
|
|
626
|
|
|
119
|
|
|
638
|
|
DSW Designer Shoe
Warehouse
|
27
|
|
|
536
|
|
|
27
|
|
|
535
|
|
|
145
|
|
|
1,162
|
|
|
146
|
|
|
1,173
|
|
Total operating
stores
|
669
|
|
|
11,795
|
|
|
667
|
|
|
11,752
|
|
Gross
Profit
|
|
Three months
ended
|
|
|
|
|
|
|
|
October 31,
2020
|
|
November 2,
2019
|
|
Change
|
(dollars in
thousands)
|
Amount
|
|
% of Segment Net
Sales
|
|
Amount
|
|
% of Segment Net
Sales
|
|
Amount
|
|
%
|
|
Basis
Points
|
Segment gross profit
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Retail
|
$
|
117,679
|
|
|
23.4
|
%
|
|
$
|
201,409
|
|
|
28.1
|
%
|
|
$
|
(83,730)
|
|
|
(41.6)%
|
|
(470)
|
|
Canada
Retail
|
18,905
|
|
|
30.7
|
%
|
|
27,485
|
|
|
36.0
|
%
|
|
$
|
(8,580)
|
|
|
(31.2)%
|
|
(530)
|
|
Brand
Portfolio
|
22,128
|
|
|
26.4
|
%
|
|
40,849
|
|
|
29.7
|
%
|
|
$
|
(18,721)
|
|
|
(45.8)%
|
|
(330)
|
|
Other
|
6,272
|
|
|
23.2
|
%
|
|
6,291
|
|
|
21.8
|
%
|
|
$
|
(19)
|
|
|
(0.3)%
|
|
140
|
|
|
164,984
|
|
|
|
|
276,034
|
|
|
|
|
|
|
|
|
|
Elimination of
intersegment gross loss (profit)
|
672
|
|
|
|
|
(2,726)
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
$
|
165,656
|
|
|
25.4
|
%
|
|
$
|
273,308
|
|
|
29.3
|
%
|
|
$
|
(107,652)
|
|
|
(39.4)%
|
|
(390)
|
|
|
Nine months
ended
|
|
|
|
|
|
|
|
October 31,
2020
|
|
November 2,
2019
|
|
Change
|
(dollars in
thousands)
|
Amount
|
|
% of Segment Net
Sales
|
|
Amount
|
|
% of Segment Net
Sales
|
|
Amount
|
|
%
|
|
Basis
Points
|
Segment gross profit
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Retail
|
$
|
124,806
|
|
|
9.8
|
%
|
|
$
|
619,356
|
|
|
29.7
|
%
|
|
$
|
(494,550)
|
|
|
(79.8)%
|
|
(1,990)
|
|
Canada
Retail
|
22,244
|
|
|
15.8
|
%
|
|
65,171
|
|
|
34.0
|
%
|
|
$
|
(42,927)
|
|
|
(65.9)%
|
|
(1,820)
|
|
Brand
Portfolio
|
24,592
|
|
|
12.5
|
%
|
|
93,308
|
|
|
27.0
|
%
|
|
$
|
(68,716)
|
|
|
(73.6)%
|
|
(1,450)
|
|
Other
|
962
|
|
|
1.5
|
%
|
|
21,643
|
|
|
23.0
|
%
|
|
$
|
(20,681)
|
|
|
(95.6)%
|
|
(2,150)
|
|
|
172,604
|
|
|
|
|
799,478
|
|
|
|
|
|
|
|
|
|
Elimination of
intersegment gross loss (profit)
|
3,634
|
|
|
|
|
(5,664)
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
$
|
176,238
|
|
|
10.8
|
%
|
|
$
|
793,814
|
|
|
29.8
|
%
|
|
$
|
(617,576)
|
|
|
(77.8)%
|
|
(1,900)
|
|
Intersegment
Eliminations
|
|
Three months
ended
|
(in
thousands)
|
October 31,
2020
|
|
November 2,
2019
|
Elimination of
intersegment activity:
|
|
|
|
Net sales recognized by
Brand Portfolio segment
|
$
|
(21,554)
|
|
|
$
|
(25,592)
|
|
Cost of
sales:
|
|
|
|
Cost of sales
recognized by Brand Portfolio segment
|
17,155
|
|
|
17,363
|
|
Recognition of
intersegment gross profit for inventory previously purchased
that
was subsequently sold to external customers during the current
period
|
5,071
|
|
|
5,503
|
|
Gross loss
(profit)
|
$
|
672
|
|
|
$
|
(2,726)
|
|
|
Nine months
ended
|
(in
thousands)
|
October 31,
2020
|
|
November 2,
2019
|
Elimination of
intersegment activity:
|
|
|
|
Net sales recognized by
Brand Portfolio segment
|
$
|
(47,478)
|
|
|
$
|
(53,813)
|
|
Cost of
sales:
|
|
|
|
Cost of sales
recognized by Brand Portfolio segment
|
34,116
|
|
|
39,281
|
|
Recognition of
intersegment gross profit for inventory previously purchased
that
was subsequently sold to external customers during the current
period
|
16,996
|
|
|
8,868
|
|
Gross loss
(profit)
|
$
|
3,634
|
|
|
$
|
(5,664)
|
|
DESIGNER BRANDS
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in
thousands, except per share amounts)
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
October 31,
2020
|
|
November 2,
2019
|
|
October 31,
2020
|
|
November 2,
2019
|
Net sales
|
$
|
652,870
|
|
|
$
|
933,826
|
|
|
$
|
1,625,367
|
|
|
$
|
2,663,067
|
|
Cost of
sales
|
(487,214)
|
|
|
(660,518)
|
|
|
(1,449,129)
|
|
|
(1,869,253)
|
|
Operating
expenses
|
(196,067)
|
|
|
(215,038)
|
|
|
(551,712)
|
|
|
(654,988)
|
|
Income from equity
investment
|
1,902
|
|
|
2,662
|
|
|
6,325
|
|
|
7,354
|
|
Impairment
charges
|
(30,081)
|
|
|
(4,824)
|
|
|
(149,363)
|
|
|
(4,824)
|
|
Operating profit
(loss)
|
(58,590)
|
|
|
56,108
|
|
|
(518,512)
|
|
|
141,356
|
|
Interest expense,
net
|
(9,009)
|
|
|
(2,174)
|
|
|
(14,955)
|
|
|
(5,947)
|
|
Non-operating income
(expenses), net
|
24
|
|
|
15
|
|
|
680
|
|
|
(128)
|
|
Income (loss) before
income taxes
|
(67,575)
|
|
|
53,949
|
|
|
(532,787)
|
|
|
135,281
|
|
Income tax benefit
(provision)
|
26,932
|
|
|
(10,489)
|
|
|
178,072
|
|
|
(33,220)
|
|
Net income
(loss)
|
$
|
(40,643)
|
|
|
$
|
43,460
|
|
|
$
|
(354,715)
|
|
|
$
|
102,061
|
|
Diluted earnings
(loss) per share
|
$
|
(0.56)
|
|
|
$
|
0.60
|
|
|
$
|
(4.92)
|
|
|
$
|
1.36
|
|
Weighted average
diluted shares
|
72,344
|
|
|
72,947
|
|
|
72,134
|
|
|
75,149
|
|
DESIGNER BRANDS
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(unaudited and in
thousands)
|
|
|
|
|
|
|
|
October 31,
2020
|
|
February 1,
2020
|
|
November 2,
2019
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
114,531
|
|
|
$
|
86,564
|
|
|
$
|
87,838
|
|
Investments
|
—
|
|
|
24,974
|
|
|
25,939
|
|
Accounts receivable,
net
|
61,840
|
|
|
89,151
|
|
|
87,313
|
|
Inventories
|
545,954
|
|
|
632,587
|
|
|
677,696
|
|
Prepaid expenses and
other current assets
|
54,577
|
|
|
67,534
|
|
|
48,077
|
|
Total current
assets
|
776,902
|
|
|
900,810
|
|
|
926,863
|
|
Property and
equipment, net
|
313,102
|
|
|
395,009
|
|
|
394,695
|
|
Operating lease
assets
|
728,871
|
|
|
918,801
|
|
|
950,514
|
|
Goodwill
|
93,655
|
|
|
113,644
|
|
|
113,644
|
|
Intangible assets,
net
|
15,652
|
|
|
22,846
|
|
|
23,297
|
|
Deferred tax
assets
|
208,976
|
|
|
31,863
|
|
|
39,452
|
|
Equity
investment
|
57,978
|
|
|
57,760
|
|
|
54,964
|
|
Other
assets
|
31,585
|
|
|
24,337
|
|
|
33,549
|
|
Total
assets
|
$
|
2,226,721
|
|
|
$
|
2,465,070
|
|
|
$
|
2,536,978
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Accounts
payable
|
$
|
371,382
|
|
|
$
|
299,072
|
|
|
$
|
266,335
|
|
Accrued
expenses
|
171,261
|
|
|
194,264
|
|
|
190,897
|
|
Current maturities of
long-term debt
|
62,500
|
|
|
—
|
|
|
—
|
|
Current operating
lease liabilities
|
226,423
|
|
|
186,695
|
|
|
184,598
|
|
Total current
liabilities
|
831,566
|
|
|
680,031
|
|
|
641,830
|
|
Long-term
debt
|
274,635
|
|
|
190,000
|
|
|
235,000
|
|
Non-current operating
lease liabilities
|
721,771
|
|
|
846,584
|
|
|
880,883
|
|
Other non-current
liabilities
|
28,228
|
|
|
27,541
|
|
|
36,084
|
|
Total
liabilities
|
1,856,200
|
|
|
1,744,156
|
|
|
1,793,797
|
|
Total shareholders'
equity
|
370,521
|
|
|
720,914
|
|
|
743,181
|
|
Total liabilities and
shareholders' equity
|
$
|
2,226,721
|
|
|
$
|
2,465,070
|
|
|
$
|
2,536,978
|
|
DESIGNER BRANDS
INC.
NON-GAAP
RECONCILIATION
(unaudited and in
thousands, except per share amounts)
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
October 31,
2020
|
|
November 2,
2019
|
|
October 31,
2020
|
|
November 2,
2019
|
Reported net income
(loss)
|
$
|
(40,643)
|
|
|
$
|
43,460
|
|
|
$
|
(354,715)
|
|
|
$
|
102,061
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
Included in cost of
sales -
|
|
|
|
|
|
|
|
COVID-19 incremental
costs
|
—
|
|
|
—
|
|
|
3,676
|
|
|
—
|
|
Included in operating
expenses:
|
|
|
|
|
|
|
|
COVID-19 incremental
costs (credits), net
|
(985)
|
|
|
—
|
|
|
(4,453)
|
|
|
—
|
|
Integration and
restructuring expenses
|
816
|
|
|
1,465
|
|
|
11,019
|
|
|
13,574
|
|
Amortization of
intangible assets
|
113
|
|
|
617
|
|
|
582
|
|
|
664
|
|
Impairment
charges
|
30,081
|
|
|
4,824
|
|
|
149,363
|
|
|
4,824
|
|
Gain on
settlement
|
—
|
|
|
—
|
|
|
(8,990)
|
|
|
—
|
|
Included in
non-operating expenses, net -
|
|
|
|
|
|
|
|
Foreign currency
transaction losses (gains)
|
(25)
|
|
|
9
|
|
|
(368)
|
|
|
216
|
|
Total pre-tax
adjustments
|
30,000
|
|
|
6,915
|
|
|
150,829
|
|
|
19,278
|
|
Tax effect of
adjustments
|
(8,357)
|
|
|
(1,789)
|
|
|
(38,875)
|
|
|
(3,394)
|
|
Total adjustments,
after tax
|
21,643
|
|
|
5,126
|
|
|
111,954
|
|
|
15,884
|
|
Adjusted net income
(loss)
|
$
|
(19,000)
|
|
|
$
|
48,586
|
|
|
$
|
(242,761)
|
|
|
$
|
117,945
|
|
Reported diluted
earnings (loss) per share
|
$
|
(0.56)
|
|
|
$
|
0.60
|
|
|
$
|
(4.92)
|
|
|
$
|
1.36
|
|
Adjusted diluted
earnings (loss) per share
|
$
|
(0.26)
|
|
|
$
|
0.67
|
|
|
$
|
(3.37)
|
|
|
$
|
1.57
|
|
Non-GAAP Measures
In addition to diluted earnings (loss) per share and net income
(loss) determined in accordance with accounting principles
generally accepted in the United
States ("GAAP"), the Company uses adjusted diluted earnings
(loss) per share and adjusted net income (loss), which adjust for
the effects of: (1) COVID-19 incremental costs and credits; (2)
integration and restructuring expenses; (3) amortization expense of
intangible assets; (4) impairment charges; (5) gain on settlement;
(6) foreign currency transaction losses (gains); and (7) the net
tax expense impact of such items. 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.
View original
content:http://www.prnewswire.com/news-releases/designer-brands-inc-reports-third-quarter-2020-financial-results-301188877.html
SOURCE Designer Brands Inc.