Comparable sales up 6.2% on top of comparable
sales of 84.9% for the second quarter of 2021
Net sales from our Owned Brands increased
40.4% over the same period last year
Six of our Owned Brands would fall within the
top 50 fashion footwear brands in the second quarter
Full year 2022 diluted EPS guidance raised to
a range of $2.05 to $2.15 from $1.90 to
$2.00
COLUMBUS, Ohio, Aug. 31,
2022 /CNW/ -- 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
July 30, 2022.
Roger Rawlins, Chief Executive
Officer, stated, "Our second quarter was a continuation of the
strength we have seen in both our direct-to-consumer and wholesale
channels and we were pleased with our topline results. We are
seeing this trend continue into the third quarter as our
back-to-school season, a new holiday period for Designer Brands,
has been performing well, supported by an increased assortment of
athletic and kid's products.
"We continue to successfully execute against our long-term plan
to double sales of our Owned Brands by 2026 while maintaining sales
of our top National Brand partners. The recent addition of
Le Tigre to our portfolio of brands,
coupled with our recently announced partnership with Reebok,
supports our plan to build a very relevant and highly demanded
Owned Brands assortment. Our brand building strategy continues to
drive strong financial results and has enabled us to repurchase 7.8
million common shares in the second quarter. As we look forward, we
are well-positioned for the back half of the year and are confident
in our ability to deliver our updated 2022 guidance."
Second Quarter Operating Results (all comparisons
are to the second quarter of 2021)
- Net sales increased 5.1% to $859.3
million.
- Comparable sales increased 6.2%.
- Gross profit increased to $295.7
million versus $284.7 million
last year, and gross margin as a percentage of net sales was 34.4%
as compared to 34.8% last year.
- Reported net income was $46.2
million, or diluted earnings per share ("EPS") of
$0.62.
- Adjusted net income was $46.1
million, or adjusted diluted EPS of $0.62.
Liquidity Highlights
- Cash and cash equivalents totaled $50.8
million at the end of the second quarter of 2022 compared to
$46.5 million at the end of the same
period last year, with $157.7 million
remaining available for borrowings under our senior secured
asset-based revolving credit facility ("ABL Revolver"). Debt
totaled $387.4 million at the end of
the second quarter of 2022 compared to $247.1 million at the end of the same period last
year. We anticipate receiving approximately $160.0 million in the near future from the
Internal Revenue Service as a result of the Coronavirus Aid,
Relief, and Economic Security Act.
- The Company ended the quarter with more normalized inventory
levels of $694.0 million compared to
$504.3 million at the same period
last year with accelerated receipts to support fall season
demand.
Return to Shareholders
- During the second quarter of 2022, Designer Brands repurchased
7.8 million Class A common shares (10.8% of Class A and Class B
common shares at the beginning of the quarter) at an aggregate cost
of $105.8 million under its share
repurchase program.
- During the six months ended July 30,
2022, we repurchased 9.4 million Class A common shares
(12.8% of Class A and Class B common shares at the beginning of the
fiscal year) at an aggregate cost of $128.5
million, with $206.4 million
of Class A common shares that remain authorized under the program
as of July 30, 2022.
- A dividend of $0.05 per share of
Class A and Class B common shares will be paid on October 6, 2022 to shareholders of record at the
close of business on September 22,
2022.
Store Openings and Closings
During the second quarter of 2022, we closed 4 stores in the
U.S. and 2 stores in Canada with
no new stores opened, resulting in a total of 506 U.S. stores and
138 Canadian stores as of July 30, 2022. In May 2022, we opened our new "Warehouse
Reimagined" format at a Houston-area DSW store.
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
|
|
$1.90 -
$2.00
|
|
$2.05 -
$2.15
|
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 0992621 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/92W8GVxERKJ
For those unable to listen to the live webcast, an archived
version will be available via the same website address until
September 1, 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: 8228598
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)
|
July 30,
2022
|
|
July 31,
2021
|
|
Change
|
|
Amount
|
|
% of
Segment
Net Sales
|
|
Amount
|
|
% of
Segment
Net Sales
|
|
Amount
|
|
%
|
Segment net
sales:
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Retail
|
$
734,063
|
|
83.5 %
|
|
$
723,093
|
|
87.0 %
|
|
$ 10,970
|
|
1.5 %
|
Canada
Retail
|
78,284
|
|
8.9 %
|
|
57,585
|
|
6.9 %
|
|
20,699
|
|
35.9 %
|
Brand
Portfolio
|
66,351
|
|
7.6 %
|
|
50,529
|
|
6.1 %
|
|
15,822
|
|
31.3 %
|
Total segment net
sales
|
878,698
|
|
100.0 %
|
|
831,207
|
|
100.0 %
|
|
47,491
|
|
5.7 %
|
Elimination of
intersegment net sales
|
(19,379)
|
|
|
|
(13,872)
|
|
|
|
(5,507)
|
|
39.7 %
|
Consolidated net
sales
|
$
859,319
|
|
|
|
$
817,335
|
|
|
|
$ 41,984
|
|
5.1 %
|
|
Six months
ended
|
|
|
|
|
(dollars in
thousands)
|
July 30,
2022
|
|
July 31,
2021
|
|
Change
|
|
Amount
|
|
% of
Segment
Net Sales
|
|
Amount
|
|
% of
Segment
Net Sales
|
|
Amount
|
|
%
|
Segment net
sales:
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Retail
|
$
1,436,808
|
|
82.8 %
|
|
$
1,343,751
|
|
86.7 %
|
|
$ 93,057
|
|
6.9 %
|
Canada
Retail
|
134,599
|
|
7.8 %
|
|
98,189
|
|
6.3 %
|
|
36,410
|
|
37.1 %
|
Brand
Portfolio
|
163,807
|
|
9.4 %
|
|
107,956
|
|
7.0 %
|
|
55,851
|
|
51.7 %
|
Total segment net
sales
|
1,735,214
|
|
100.0 %
|
|
1,549,896
|
|
100.0 %
|
|
185,318
|
|
12.0 %
|
Elimination of
intersegment net sales
|
(45,352)
|
|
|
|
(29,406)
|
|
|
|
(15,946)
|
|
54.2 %
|
Consolidated net
sales
|
$
1,689,862
|
|
|
|
$
1,520,490
|
|
|
|
$
169,372
|
|
11.1 %
|
Net Sales by Brand
Category
|
(in
thousands)
|
U.S. Retail
|
|
Canada
Retail
|
|
Brand
Portfolio
|
|
Eliminations
|
|
Consolidated
|
Three months ended
July 30, 2022
|
|
|
|
|
|
|
|
|
|
Owned
Brands:(1)
|
|
|
|
|
|
|
|
|
|
Direct-to-consumer
|
$
147,877
|
|
$
—
|
|
$
7,793
|
|
$
—
|
|
$
155,670
|
External customer
wholesale and commission income
|
—
|
|
—
|
|
39,179
|
|
—
|
|
39,179
|
Intersegment wholesale
and commission income
|
—
|
|
—
|
|
19,379
|
|
(19,379)
|
|
—
|
Total Owned
Brands
|
147,877
|
|
—
|
|
66,351
|
|
(19,379)
|
|
194,849
|
National
brands
|
586,186
|
|
—
|
|
—
|
|
—
|
|
586,186
|
Canada
Retail(2)
|
—
|
|
78,284
|
|
—
|
|
—
|
|
78,284
|
Total net
sales
|
$
734,063
|
|
$
78,284
|
|
$
66,351
|
|
$
(19,379)
|
|
$
859,319
|
Three months ended July
31, 2021
|
|
|
|
|
|
|
|
|
|
Owned
Brands:(1)
|
|
|
|
|
|
|
|
|
|
Direct-to-consumer
|
$
102,152
|
|
$
—
|
|
$
5,437
|
|
$
—
|
|
$
107,589
|
External customer
wholesale and commission income
|
—
|
|
—
|
|
31,220
|
|
—
|
|
31,220
|
Intersegment wholesale
and commission income
|
—
|
|
—
|
|
13,872
|
|
(13,872)
|
|
—
|
Total Owned
Brands
|
102,152
|
|
—
|
|
50,529
|
|
(13,872)
|
|
138,809
|
National
brands
|
620,941
|
|
—
|
|
—
|
|
—
|
|
620,941
|
Canada
Retail(2)
|
—
|
|
57,585
|
|
—
|
|
—
|
|
57,585
|
Total net
sales
|
$
723,093
|
|
$
57,585
|
|
$
50,529
|
|
$
(13,872)
|
|
$
817,335
|
Six months ended
July 30, 2022
|
|
|
|
|
|
|
|
|
|
Owned
Brands:(1)
|
|
|
|
|
|
|
|
|
|
Direct-to-consumer
|
$
287,032
|
|
$
—
|
|
$
14,320
|
|
$
—
|
|
$
301,352
|
External customer
wholesale and commission income
|
—
|
|
—
|
|
104,135
|
|
—
|
|
104,135
|
Intersegment wholesale
and commission income
|
—
|
|
—
|
|
45,352
|
|
(45,352)
|
|
—
|
Total Owned
Brands
|
287,032
|
|
—
|
|
163,807
|
|
(45,352)
|
|
405,487
|
National
brands
|
1,149,776
|
|
—
|
|
—
|
|
—
|
|
1,149,776
|
Canada
Retail(2)
|
—
|
|
134,599
|
|
—
|
|
—
|
|
134,599
|
Total net
sales
|
$
1,436,808
|
|
$
134,599
|
|
$
163,807
|
|
$
(45,352)
|
|
$
1,689,862
|
Six months ended July
31, 2021
|
|
|
|
|
|
|
|
|
|
Owned
Brands:(1)
|
|
|
|
|
|
|
|
|
|
Direct-to-consumer
|
$
185,418
|
|
$
—
|
|
$
10,890
|
|
$
—
|
|
$
196,308
|
External customer
wholesale and commission income
|
—
|
|
—
|
|
67,660
|
|
—
|
|
67,660
|
Intersegment wholesale
and commission income
|
—
|
|
—
|
|
29,406
|
|
(29,406)
|
|
—
|
Total Owned
Brands
|
185,418
|
|
—
|
|
107,956
|
|
(29,406)
|
|
263,968
|
National
brands
|
1,158,333
|
|
—
|
|
—
|
|
—
|
|
1,158,333
|
Canada
Retail(2)
|
—
|
|
98,189
|
|
—
|
|
—
|
|
98,189
|
Total net
sales
|
$
1,343,751
|
|
$
98,189
|
|
$
107,956
|
|
$
(29,406)
|
|
$
1,520,490
|
|
|
(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
|
|
Six months
ended
|
|
July 30,
2022
|
|
July 31,
2021
|
|
July 30,
2022
|
|
July 31,
2021
|
Change in comparable
sales:
|
|
|
|
|
|
|
|
U.S. Retail
segment
|
2.7 %
|
|
94.3 %
|
|
7.8 %
|
|
74.5 %
|
Canada Retail
segment
|
47.3 %
|
|
14.6 %
|
|
44.8 %
|
|
12.6 %
|
Brand Portfolio segment
- direct-to-consumer channel
|
43.3 %
|
|
10.6 %
|
|
31.5 %
|
|
8.6 %
|
Total
|
6.2 %
|
|
84.9 %
|
|
10.4 %
|
|
68.1 %
|
Store
Count
|
(square footage in
thousands)
|
July 30,
2022
|
|
July 31,
2021
|
|
Number of
Stores
|
|
Square
Footage
|
|
Number of
Stores
|
|
Square
Footage
|
U.S. Retail segment -
DSW stores
|
506
|
|
10,237
|
|
515
|
|
10,491
|
Canada Retail
segment:
|
|
|
|
|
|
|
|
The Shoe Company
stores
|
113
|
|
596
|
|
116
|
|
611
|
DSW stores
|
25
|
|
496
|
|
27
|
|
536
|
|
138
|
|
1,092
|
|
143
|
|
1,147
|
Total number of
stores
|
644
|
|
11,329
|
|
658
|
|
11,638
|
Gross
Profit
|
|
Three months
ended
|
|
|
|
|
|
|
(dollars in
thousands)
|
July 30,
2022
|
|
July 31,
2021
|
|
Change
|
|
Amount
|
|
% of
Segment
Net Sales
|
|
Amount
|
|
% of
Segment
Net Sales
|
|
Amount
|
|
%
|
|
Basis
Points
|
Segment gross
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Retail
|
$
251,143
|
|
34.2 %
|
|
$
256,893
|
|
35.5 %
|
|
$
(5,750)
|
|
(2.2) %
|
|
(130)
|
Canada
Retail
|
30,974
|
|
39.6 %
|
|
18,768
|
|
32.6 %
|
|
12,206
|
|
65.0 %
|
|
700
|
Brand
Portfolio
|
12,294
|
|
18.5 %
|
|
8,533
|
|
16.9 %
|
|
3,761
|
|
44.1 %
|
|
160
|
Total segment gross
profit
|
294,411
|
|
33.5 %
|
|
284,194
|
|
34.2 %
|
|
10,217
|
|
3.6 %
|
|
(70)
|
Net recognition of
intersegment gross profit
|
1,259
|
|
|
|
487
|
|
|
|
772
|
|
|
|
|
Consolidated gross
profit
|
$
295,670
|
|
34.4 %
|
|
$
284,681
|
|
34.8 %
|
|
$ 10,989
|
|
3.9 %
|
|
(40)
|
|
Six months
ended
|
|
|
|
|
|
|
(dollars in
thousands)
|
July 30,
2022
|
|
July 31,
2021
|
|
Change
|
|
Amount
|
|
% of
Segment
Net Sales
|
|
Amount
|
|
% of
Segment
Net Sales
|
|
Amount
|
|
%
|
|
Basis
Points
|
Segment gross
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Retail
|
$
484,210
|
|
33.7 %
|
|
$
450,006
|
|
33.5 %
|
|
$ 34,204
|
|
7.6 %
|
|
20
|
Canada
Retail
|
49,847
|
|
37.0 %
|
|
29,603
|
|
30.1 %
|
|
20,244
|
|
68.4 %
|
|
690
|
Brand
Portfolio
|
36,136
|
|
22.1 %
|
|
20,459
|
|
19.0 %
|
|
15,677
|
|
76.6 %
|
|
310
|
Total segment gross
profit
|
570,193
|
|
32.9 %
|
|
500,068
|
|
32.3 %
|
|
70,125
|
|
14.0 %
|
|
60
|
Net recognition of
intersegment gross profit
|
1,222
|
|
|
|
724
|
|
|
|
498
|
|
|
|
|
Consolidated gross
profit
|
$
571,415
|
|
33.8 %
|
|
$
500,792
|
|
32.9 %
|
|
$ 70,623
|
|
14.1 %
|
|
90
|
Intersegment
Eliminations
|
|
Three months
ended
|
(in
thousands)
|
July 30,
2022
|
|
July 31,
2021
|
Recognition
(elimination) of intersegment activity:
|
|
|
|
Net sales recognized by
Brand Portfolio segment
|
$
(19,379)
|
|
$
(13,872)
|
Cost of
sales:
|
|
|
|
Cost of sales
recognized by Brand Portfolio segment
|
12,554
|
|
9,707
|
Recognition of
intersegment gross profit for inventory previously purchased
that
was subsequently sold to external customers during the current
period
|
8,084
|
|
4,652
|
|
$
1,259
|
|
$
487
|
|
Six months
ended
|
(in
thousands)
|
July 30,
2022
|
|
July 31,
2021
|
Recognition
(elimination) of intersegment activity:
|
|
|
|
Net sales recognized by
Brand Portfolio segment
|
$
(45,352)
|
|
$
(29,406)
|
Cost of
sales:
|
|
|
|
Cost of sales
recognized by Brand Portfolio segment
|
30,723
|
|
20,642
|
Recognition of
intersegment gross profit for inventory previously purchased
that
was subsequently sold to external customers during the current
period
|
15,851
|
|
9,488
|
|
$
1,222
|
|
$
724
|
DESIGNER BRANDS
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(unaudited and in
thousands, except per share amounts)
|
|
|
Three months
ended
|
|
Six months
ended
|
|
July 30,
2022
|
|
July 31,
2021
|
|
July 30,
2022
|
|
July 31,
2021
|
Net sales
|
$
859,319
|
|
$
817,335
|
|
$
1,689,862
|
|
$
1,520,490
|
Cost of
sales
|
(563,649)
|
|
(532,654)
|
|
(1,118,447)
|
|
(1,019,698)
|
Gross profit
|
295,670
|
|
284,681
|
|
571,415
|
|
500,792
|
Operating
expenses
|
(228,690)
|
|
(224,385)
|
|
(452,116)
|
|
(425,199)
|
Income from equity
investments
|
2,435
|
|
2,290
|
|
4,380
|
|
3,998
|
Impairment
charges
|
(1,816)
|
|
(1,174)
|
|
(2,888)
|
|
(1,174)
|
Operating
profit
|
67,599
|
|
61,412
|
|
120,791
|
|
78,417
|
Interest expense,
net
|
(2,752)
|
|
(8,072)
|
|
(5,704)
|
|
(16,886)
|
Loss on extinguishment
of debt and write-off of debt issuance costs
|
—
|
|
—
|
|
(12,862)
|
|
—
|
Non-operating income
(expenses), net
|
37
|
|
(244)
|
|
43
|
|
562
|
Income before income
taxes
|
64,884
|
|
53,096
|
|
102,268
|
|
62,093
|
Income tax
provision
|
(18,671)
|
|
(10,236)
|
|
(29,873)
|
|
(2,207)
|
Net income
|
$
46,213
|
|
$
42,860
|
|
$
72,395
|
|
$
59,886
|
Diluted earnings per
share
|
$
0.62
|
|
$
0.55
|
|
$
0.96
|
|
$
0.78
|
Weighted average
diluted shares
|
73,942
|
|
77,619
|
|
75,369
|
|
77,271
|
DESIGNER BRANDS
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(unaudited and in
thousands)
|
|
|
July 30,
2022
|
|
January 29,
2022
|
|
July 31,
2021
|
ASSETS
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
50,799
|
|
$
72,691
|
|
$
46,458
|
Receivables,
net
|
204,880
|
|
199,826
|
|
199,371
|
Inventories
|
694,010
|
|
586,429
|
|
504,316
|
Prepaid expenses and
other current assets
|
51,558
|
|
55,270
|
|
53,616
|
Total current
assets
|
1,001,247
|
|
914,216
|
|
803,761
|
Property and equipment,
net
|
242,147
|
|
256,786
|
|
271,401
|
Operating lease
assets
|
646,062
|
|
647,221
|
|
676,665
|
Goodwill
|
93,655
|
|
93,655
|
|
93,655
|
Intangible assets,
net
|
20,237
|
|
15,527
|
|
15,905
|
Equity
investments
|
61,957
|
|
55,578
|
|
55,149
|
Other assets
|
37,134
|
|
31,651
|
|
29,513
|
Total assets
|
$
2,102,439
|
|
$
2,014,634
|
|
$
1,946,049
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
Accounts
payable
|
$
337,543
|
|
$
340,877
|
|
$
299,322
|
Accrued
expenses
|
210,469
|
|
215,812
|
|
222,055
|
Current maturities of
long-term debt
|
—
|
|
—
|
|
62,500
|
Current operating
lease liabilities
|
192,130
|
|
202,228
|
|
190,853
|
Total current
liabilities
|
740,142
|
|
758,917
|
|
774,730
|
Long-term
debt
|
387,441
|
|
225,536
|
|
184,569
|
Non-current operating
lease liabilities
|
588,064
|
|
593,429
|
|
645,136
|
Other non-current
liabilities
|
25,844
|
|
24,356
|
|
30,502
|
Total shareholders'
equity
|
360,948
|
|
412,396
|
|
311,112
|
Total liabilities and
shareholders' equity
|
$
2,102,439
|
|
$
2,014,634
|
|
$
1,946,049
|
DESIGNER BRANDS
INC.
|
NON-GAAP
RECONCILIATIONS
|
(unaudited and in
thousands, except per share amounts)
|
|
|
Three months
ended
|
|
Six months
ended
|
|
July 30,
2022
|
|
July 31,
2021
|
|
July 30,
2022
|
|
July 31,
2021
|
Operating
expenses
|
$
(228,690)
|
|
$
(224,385)
|
|
$
(452,116)
|
|
$
(425,199)
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
Restructuring
expenses
|
992
|
|
1,094
|
|
1,606
|
|
2,836
|
Target acquisition
costs
|
—
|
|
5,333
|
|
—
|
|
5,333
|
Adjusted operating
expenses
|
$
(227,698)
|
|
$
(217,958)
|
|
$
(450,510)
|
|
$
(417,030)
|
Operating
profit
|
$
67,599
|
|
$
61,412
|
|
$
120,791
|
|
$
78,417
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
Restructuring
expenses
|
992
|
|
1,094
|
|
1,606
|
|
2,836
|
Target acquisition
costs
|
—
|
|
5,333
|
|
—
|
|
5,333
|
Impairment
charges
|
1,816
|
|
1,174
|
|
2,888
|
|
1,174
|
Total non-GAAP
adjustments
|
2,808
|
|
7,601
|
|
4,494
|
|
9,343
|
Adjusted operating
profit
|
$
70,407
|
|
$
69,013
|
|
$
125,285
|
|
$
87,760
|
Net income
|
$
46,213
|
|
$
42,860
|
|
$
72,395
|
|
$
59,886
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
Restructuring
expenses
|
992
|
|
1,094
|
|
1,606
|
|
2,836
|
Target acquisition
costs
|
—
|
|
5,333
|
|
—
|
|
5,333
|
Impairment
charges
|
1,816
|
|
1,174
|
|
2,888
|
|
1,174
|
Loss on extinguishment
of debt and write-off of debt issuance costs
|
—
|
|
—
|
|
12,862
|
|
—
|
Foreign currency
transaction losses (gains)
|
(37)
|
|
244
|
|
(43)
|
|
(562)
|
Total non-GAAP
adjustments before tax effect
|
2,771
|
|
7,845
|
|
17,313
|
|
8,781
|
Tax effect of non-GAAP
adjustments
|
(735)
|
|
(1,871)
|
|
(4,374)
|
|
(2,179)
|
Valuation allowance
change on deferred tax assets
|
(2,135)
|
|
(5,395)
|
|
(2,495)
|
|
(13,577)
|
Total adjustments,
after tax
|
(99)
|
|
579
|
|
10,444
|
|
(6,975)
|
Adjusted net
income
|
$
46,114
|
|
$
43,439
|
|
$
82,839
|
|
$
52,911
|
Diluted earnings per
share
|
$
0.62
|
|
$
0.55
|
|
$
0.96
|
|
$
0.78
|
Adjusted diluted
earnings per share
|
$
0.62
|
|
$
0.56
|
|
$
1.10
|
|
$
0.68
|
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
expenses; (2) target acquisition costs; (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
View original
content:https://www.prnewswire.com/news-releases/designer-brands-inc-reports-second-quarter-2022-financial-results-301615087.html
SOURCE Designer Brands Inc.