Designer Brands Inc. Files 10-Q for Q2 2024

TL;DR

DBI 10-Q filed: Q2 2024 results in. Check financials.

AI Summary

Designer Brands Inc. reported its second quarter results for the period ending August 3, 2024. The company's fiscal year ends on February 3rd. Key financial data and stock information are included in this filing.

Why It Matters

This filing provides investors with the latest financial performance and operational details of Designer Brands Inc., crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags.

Key Numbers

• 20240803 — Period End Date (End of the reporting period for the 10-Q)
• 20240911 — Filing Date (Date the 10-Q was filed with the SEC)
• 0203 — Fiscal Year End (Designer Brands Inc.'s fiscal year end)

Key Players & Entities

• Designer Brands Inc. (company) — Filer of the 10-Q
• 810 DSW DRIVE (location) — Business and mailing address
• COLUMBUS (location) — City of business and mailing address
• OH (location) — State of business and mailing address
• 43219 (location) — ZIP code of business and mailing address
• DSW Inc. (company) — Former company name

FAQ

Filing Documents

• dsw-20240803.htm (10-Q) — 1520KB
• q2202410-qexhibit311.htm (EX-31.1) — 9KB
• q2202410-qexhibit312.htm (EX-31.2) — 9KB
• q2202410-qexhibit321.htm (EX-32.1) — 6KB
• q2202410-qexhibit322.htm (EX-32.2) — 6KB
• dsw-20240803_g1.jpg (GRAPHIC) — 5KB
• 0001319947-24-000046.txt ( ) — 7260KB
• dsw-20240803.xsd (EX-101.SCH) — 40KB
• dsw-20240803_cal.xml (EX-101.CAL) — 74KB
• dsw-20240803_def.xml (EX-101.DEF) — 220KB
• dsw-20240803_lab.xml (EX-101.LAB) — 556KB
• dsw-20240803_pre.xml (EX-101.PRE) — 381KB
• dsw-20240803_htm.xml (XML) — 1206KB

Financial Statements

Item 1 Financial Statements 1 Condensed Consolidated Statements of Operations 1 Condensed Consolidated Statements of Comprehensive Income 2 Condensed Consolidated Balance Sheets 3 Condensed Consolidated Statements of Shareholders' Equity 4 Condensed Consolidated Statements of Cash Flows 5 Notes to the Condensed Consolidated Financial Statements 6

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations 19

Quantitative and Qualitative Disclosures About Market Risk

Item 3 Quantitative and Qualitative Disclosures About Market Risk 28

Controls and Procedures

Item 4 Controls and Procedures 29 PART II

Legal Proceedings

Item 1 Legal Proceedings 29

Risk Factors

Item 1A Risk Factors 29

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 29

Defaults Upon Senior Securities

Item 3 Defaults Upon Senior Securities 30

Mine Safety Disclosures

Item 4 Mine Safety Disclosures 30

Other Information

Item 5 Other Information 30

Exhibits

Item 6 Exhibits 31 SIGNATURE 32 All references to "we," "us," "our," "Designer Brands," "Designer Brands Inc.," or the "Company" in this Quarterly Report on Form 10-Q for the quarter ended August 3, 2024 (this "Form 10-Q") mean Designer Brands Inc. and its subsidiaries. We have included certain website addresses throughout this report as inactive textual references only. The information contained on the websites referenced herein is not incorporated into this Form 10-Q. i Table of contents Cautionary Statement Regarding Forward-Looking Information for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995 Certain statements in this Form 10-Q may constitute forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements reflect our current views with respect to, among other things, future events and financial performance. You can identify these forward-looking statements by the use of 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. Any forward-looking statements contained in this Form 10-Q are based upon current plans, estimates, expectations and assumptions relating to our operations, results of operations, financial condition, and liquidity. The inclusion of any forward-looking statements should not be regarded as a representation by us or any other person that the future plans, estimates, or expectations contemplated by us will be achieved. Such forward-looking statements are subject to numerous 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 for

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three months ended Six months ended (unaudited and in thousands, except per share amounts) August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Net sales $ 771,900 $ 792,217 $ 1,518,496 $ 1,534,299 Cost of sales ( 518,986 ) ( 518,830 ) ( 1,020,513 ) ( 1,023,173 ) Gross profit 252,914 273,387 497,983 511,126 Operating expenses ( 226,896 ) ( 214,530 ) ( 465,447 ) ( 434,649 ) Income from equity investments 2,571 2,138 5,435 4,469 Impairment charges — ( 308 ) — ( 649 ) Operating profit 28,589 60,687 37,971 80,297 Interest expense, net ( 11,035 ) ( 6,932 ) ( 22,596 ) ( 13,529 ) Non-operating income (expenses), net ( 109 ) 579 ( 252 ) 245 Income before income taxes 17,445 54,334 15,123 67,013 Income tax provision ( 3,363 ) ( 17,079 ) ( 156 ) ( 18,385 ) Net income 14,082 37,255 14,967 48,628 Net income attributable to redeemable noncontrolling interest ( 258 ) ( 51 ) ( 360 ) ( 9 ) Net income attributable to Designer Brands Inc. $ 13,824 $ 37,204 $ 14,607 $ 48,619 Earnings per share attributable to Designer Brands Inc.: Basic earnings per share $ 0.24 $ 0.57 $ 0.25 $ 0.75 Diluted earnings per share $ 0.24 $ 0.56 $ 0.25 $ 0.73 Weighted average shares used in per share calculations: Basic shares 57,162 65,576 57,313 64,973 Diluted shares 58,576 66,997 58,978 66,863 The accompanying notes are an integral part of the condensed consolidated financial statements. 1 Table of contents CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Three months ended Six months ended (unaudited and in thousands) August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Net income $ 14,082 $ 37,255 $ 14,967 $ 48,628 Other comprehensive income (loss)- Foreign currency translation gain (loss) ( 977 ) 1,277 ( 1,880 ) 460 Comprehensive income 13,105 38,532 13,087 49,088 Comprehensive income attributable to redeemable noncontrolling interest ( 258 ) ( 51 ) ( 360 ) ( 9 ) C

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View this 10-Q filing on SEC EDGAR