DBI - Earnings call transcript Q3 2021

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Operator

00:04 Good day and welcome to the Designer Brand Inc.

Third Quarter twenty twenty one Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note that we do ask you to limit yourself to a single question with one follow-up. event recorded. today's note also is being Please XX:XX over to now like the conference to turn Stacy I would Turnof with Edelman. ahead. go Please

Stacy Turnof

XX:XX company twenty remarks the factors thirty twenty expectations, first, company made materially the for constitute the in prospects plans, results about the forward-looking differ the and Earlier various of Results twenty. ended The company press one, period morning. release October filings period thirteen-week thirty, due XX:XX comparing for of Please issued October future ended press twenty to thirteen-week release assumes to public no statements. with listed operations forward-looking SEC. Good a statements. today's may today, note company's obligation and the any update the that

Chief today to Officer; Financial turn are Poff, Chief let Rawlins, XX:XX call over the us Jared Roger Officer. and Now me Executive Roger. Joining

Roger Rawlins

XX:XX Good Designer you, quarter for thank third earnings for today us everyone, joining morning and call. Brands

to setting We share are another you incredibly quarter today. record excited with

for our acquisitions As achieve accomplishments. by associates clear the not go of consumer. in Company back focus for throughout to we faced mind Camuto offerings of have the strong sales driven always, to work athletic NPD, share a continues than our of the product. relying the year, example, Notably, a well to kid’s we in able distortion, at points and twenty penetration we meet the our positioned participate were in income including helped strength Designer We to other Brands permanent season whole the will grew And new to of records twenty level than five margin, consumer captured will historically the demands continue heavily traditionally for thank strategies school. our we increased ever to we this following we success versus according athleisure as QX our a footwear, improved and be given faster in for percentage up in this where became kid’s to as could same for XX:XX and kid’s model. This these share awareness past the hard nineteen. athletic the as each improve the levels segment Group had Canada, thirty Relations men's We've minds assortment toward on an We women's top and levels. brands to of operating take XX:XX recover fashion to in product our with of business quarter and XX:XX with to assortment one Shoe achieved and period compete market by were the we've noted our piece in ending We to expand marketing strategy to performance twenty at has the and so Our fashion than the October of family of this dedication. was destination the DBI in the rest all-time and to to well level mitigating have commanded strategies women's distortions nineteen in you. other we'd quarter in and highlights all EPS also have casualizing every twenty top in in Investor as successful. business and grow our direction key to compared to ensure sales below XX:XX integrated their us increase our key consumer’s on and brands opportunities continue of investment top to be families powered we to is athleisure, open without market risk back time Our categories These categories periods opportunity that destination contributing gross categories. outlined well for the nineteen fashion These while forward shop where market twenty allow site. seasonal and from our the continue share are this For a see infographic fashion. XX:XX this like our fifty top XX:XX significantly. has

season. share. for a demand greater new kid’s as fourth Black lend gift be strong Friday Friday times can to we Additionally, spring are the giving. quarter Black market we all-time in we've a in week. had We grab day themselves week an week this very in Prior to single the and athletic new a start record pleased calendar typically record, the demand and in highest of So, set single was our to up XX:XX setting this which opening to

were holiday the percent and period. up digital driven the comps athletic with both positive For stores for total twenty weekend, nineteen DSW results for five day was demand by eight versus first up comps the These kid’s percent versus since nineteen. COVID-nineteen. XX:XX positive up we of more fashion our over comps for forty and onset categories over fifty the time Even in percent had notably, twenty comps posting

DSW, Brands, in a VIP for by percent and one versus our up new eight quarter best-in-class VIP is third remain million key Our the twenty growth customer were our XX:XX thirty all from also driver enrollments and For programs of twenty. point enrollments base. widened for benefiting loyalty Designer grew

fifty our high at of vertical past the years, we've the Additionally, through in members brands. August. our of conversion As over are footwear, a and DSW to we own XX:XX was focus during twelve business growing July couple on shared record non-VIP top month including brands members our at our VIP

compared the a of twenty total from sixty last years, want. whom year U.S. our of In to labels on customers as focused represents goods buy reduction percent percent three and segment a sales today, brands in brands we reduced top know of XX:XX we seven in our Retail in period. over percent three five fifty seventy our labels are our number the nineteen. we number has the five we This resulted have Over offer twenty

of one Additionally, our and hundred fifty one item national Today, a four are retail retail number dollars. most for with go our Brands of unit has XX:XX and with We changing forty narrower top top inventory selling for boot one strategy been deeper of game these an brand the believe the investments was following to we partners for our Designer brands. that average reasons.

us to it frequently. conversion stock allows in with more First, see as we're higher sizes

entire now for relevant more we chain when consumers at [fringe to priority have finally, fleet our available issues going to giving it increases [ph] price decisions full of great key tell planning with by improving stories marketing fewer are the merchant match supply warehouses. us around and to our consumer top clearance, ability have and food shifting we can into Second, gross about And XX:XX Third, we access sizes our are XX:XX teams chain opportunities in ensuring our to selling these occur. items items] in exclusive assortment As brands of made the to brands, across profit. placed shared, then four I've consistently engage we preferences.

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business we drove and implementation through As brands and around control. shop XX:XX an We digital major that organization, launches. we own have shops, unique also and rallied of experiences

of of and cuts, retail our with product chain This brands inventory fourth much issues owned-brands had ahead get for a we versus has the percent We better in on has competitive the strength in period scale of a on pleased gender U.S. our sold most our none the bought industry-wide and In season strong ten third of are what XX:XX as key Furthermore, percent demonstrates positions same quarter. made items, top percent starting we ten twenty twenty of see forty versus fourteen our to put identified twenty the accelerated retail three owned-brands access that consumer inventory product. and with our heading women's items retail five how future enabled We relates to product building the the the control. well XX:XX the our peers by I quarter, position anticipation increased Designer this a into position the and soft to strategic position. soft assortment bets talent to of who that started in on them to twenty design it. XX:XX sales we fashion as loves fourteen. again this third was brand invested neutral that much up performance XX:XX the shift since from segment's of than products spoke down Our same Net at well Brands enabled DSW third percent and also nineteen our of these comp in in versus Vince our of with ordered and customers, and our relationships top so advantage. the own Retail the on twenty footwear re-launch two XX:XX XX:XX are reigniting sales of six of the we quarter are twelve are it we quarter nineteen positioning important eighty our quarter has brand sales our At become leveraged has to the placed is September vincecamuto.com to the in the third and done demand see the ended brands our additional twenty over elevated our nineteen. start on XX:XX sixty is, nineteen a twenty competitive strategic top margin over XX:XX say our whereas the were down fifty same expect digital our We percent period fourth continue trend vincecamuto.com and QX Vince the from our up with nineteen. being and strategy in of quarter from re-launching platform I omni-channel a focused in Camuto owned period vendors. to stronger top own wholesale nineteen. started our to top a styles in the percent with strong us quarter. We quarter dig flat inventory twenty the improved period they success on to nineteen, and also This twenty inventory channels business same segment’s and Camuto nineteen. versus in nineteen. particularly the want fourth the transitioning work This the customer twenty nineteen fashion with percent twenty inventory, in into huge This of a fifty is to as the supply quarter. that third brand during women's positioned We've has forty and inventory because already focus us levels, how been five percent brand. twenty. on only We outperform. We the rated September to We of orders entered better despite and our to terms to earlier up than even deliver in brand growth quarter in brand, compared the demand about at re-launch top us exceptionally Camuto, manage Camuto brands flat

and continues we of notable levels, to long deeper fifty driven increased these our the brands the of setting Gross decisions. penetration business, narrower promotions As by this in look XX:XX of to inventory our top we to of from due private expansion all our investments, margin growth decreased and run. over historical margin brands, sustain clearance rise see to much and future record opportunities the

for. of of grow detail awareness an build and in allow continue growth. share This us in periods opportunities time we in that's strategy into heavy few assortment two athletic go just customers the to XX:XX First, what when year. a investment Let destination at me for market looking areas continued our the will are a to athleisure athletic as

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before, and window kid’s large post through ever in is nineteen. XX:XX mentioned significant These includes we significantly And in July I back and one, timeframe, opening twenty holiday markets footwear periods. athletic New athletic in and playing than Year's XX:XX quarter As windows in to continue which compared remarks, U.S. as athleisure, also According remaining to the are twenty the outpaced periods August DSW selling my compete. in to here NPD room have second, same our we twenty Group then to defined the selling bigger industry. to school the peak are

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Our vertical through hundred margins basis Typically, relative higher basis the brands adds exclusive in extra to than Camuto anticipated sourcing brands compelling our points at points. an and roughly have margins thousand brands. them branded ourselves five national product command

believe athletic we the the working. line market, overall comp sixty much portfolio, will is margins. As investment underpenetrated versus greater even in space growth, We nineteen for seeing during improve the relates be trends Even five in our the percent may to that with athletic as review athletic are Given as than we our basis growth points. help proving twenty heavily fifteen so we opportunity we percent recent a quarter the of it above XX:XX posted as top brand success still market. brands the that are still drive hundred category, room there carry our to well today's that twenty our is that XX:XX third

second eight Brands selling exposure six the up price six sales fifty customer to our they well and more five enrollments strong total third to reach Also, one. business digital acquisition quarter, results Designer of customer quarter are history, Our bottom men's its was the in third in result XX:XX in very investment quarter brand's athletic percent meet in versus biggest nineteen quarter, successful male in yield acquisition the top our efficiencies. expand twenty percent to continue our marketing. started by to members customer line following benefits, that where This athletic continue as and VIP leveraging point XX:XX our investing representing Additionally, XX:XX million twenty regular in was fact, has base. marketing strategy allowed to the to continues as biggest in which to acquisition with the In expect versus QX nineteen. stronger increased first the and in quarter twenty our campaigns twenty percent targeted we of one

reengage to customers shopping continue addition to we pandemic. acquisition, customer that the during patterns reduced In strong have

quarter nine our the planned were are at comps with we considerable these and start projections. from as continue today. twenty Moving DSW the baked believe up manage aware our the subside. these percent and we can supply facing improvement quarter We are where percent challenges to nineteen. and our result, XX:XX XX:XX third labor margins the acutely well seen Canada, fiscal the year. twenty industry second to that of into we we of factors six headwinds Lastly, from grow versus have have they And have of will a down As members chain active they

our improved ended inventory digital sixteen healthier over return like share coming market school shopping, of quickly strong on down period a Jared, XX:XX the had touch back as percent total profit slightly quarter. percent versus strong, nineteen. the remain to history to quarterly second position down XX:XX also twenty the to with two segment. and nineteen, results. comp sales the our physical turning Canada Canadian in quarter Notably, I'd twenty at customer's XX:XX gaining all performance contribution business just lower online. stores delivered significantly in the with under in We Before Canadian compared while to to in Store Our a best gross

pleased We eight point comps up basis thirty performance points Gross are with margin and twenty quarter XX:XX seven percent was point up nine twenty forty seven our company three third twenty. extremely six in point nineteen. in total versus with the to versus forty hundred percent twenty percent

speak just key more We on moment. in continue are to pleased detail see execute to continue heading to our we three quarter. Jared Looking the will in strategic our we forward, fourth momentum a XX:XX initiatives. expectations strong into will

First, the customer.

two on acquiring brand. and customers. We new focused friction Number are removing

match are And our top to fifty continuously then in own supporting consumer brands. assortment brands We the footwear, growing evolving speed. three, finally, while preferences by our XX:XX

We efficiently. to are faster working product customers our to and more get

will our line these our margins, XX:XX year focus grow it improve that that, into us over market expect bottom strategic We I'll future. to to allow on pillars and both turn share, Jared? With the Jared. and this grow

Jared Poff

and Roger, good everyone. morning, you, Thank XX:XX

well quarter half our over Additionally, contributed have greatly to challenging to as of we thrilled our industry are strategy balance twenty to We We the that chain and supply and third to able response were and exit we the sheet have one. as as we expectations our during last environment set the stronger pivoted demand. impact improve across the model surpassed board. incredibly consumer strong our inventory substantially is position changing despite XX:XX accelerate success year point pleased our in business assortment facing. COVID, with significantly while XX:XX the results as with an our momentum the a twenty operations, quarter also as quarter all-time positioning our we Our our continues business across delivered flexible that records significantly

for twenty excludes Please into we under and results throughout result, well during the two. of we growth remainder quarter that believe fourth a twenty financial reference positioned specified GAAP are call unless that the adjustments note the recorded As continued certain we today's XX:XX will otherwise.

last adjusted quarter, percent Turning a sales same third percent percent one eight down comps decline. four comp ten quarter were quarter during during twenty. Retail, versus has eight down For twenty to year. the third out the third point three forty GAAP point to our XX:XX improvement forty quarter please term continued the by indicators. thirty in reconciliation twenty million for percent nineteen, performance strategy, quarter versus in XX:XX percent of traffic thirty earnings, release. reference some second see compared pre-pandemic five third to thirty even further head thirty been Total in to improve to and the driven This last up first down compared near we’ve to percent leading XX:XX to point in results, in to XX:XX point our our into to dollars, increased compared and quarter. complete nineteen. down sales compared fourth almost to nine fifty point of seen press as one this continued the twenty U.S. the operational improvement our In We to continue Notably, continued quarter. our the and percent up play nine improve year's Store quarter, has were percent three the we eight

percentage discussed, this nineteen. overall the compared we up same in boots] Athleisure that to period than [ph] performance fifty and To of market which NPD, important same this and in market spring, e-commerce athleisure points. twenty compared of was Roger [October] And to versus two seasonal, consumer of a quarter point historically. continued the Our quarter of grew sandal a percent third resulting more to XX:XX across twenty athleisure share of that the seven quarter sales thirty are are overall saw traffic We was third compared improvement strong in the up sales to twenty compelling. July eight and experienced percent emphasis period drove in similar the up quarter to Turning this comps basis season. twenty to of percent faster that categories percent success. than eight percent twenty nineteen, thirty much promotional In seeing us QX. to quarter Additionally, eight percent XX:XX the were greater percent, period that [ph] usual up fell the twenty nineteen spring, percent, the third August, for in traffic gain thirty twenty selling metrics later it’s in to six past come what in twenty during digital add to to nineteen. highly twenty even in in the third makes compared past with three six less the point closer the back note rest we nineteen. trend XX:XX we quarter sandals stellar the was penetration According her freshen in versus an a [up sixty in women’s QX, boots seeing year's demand eight XX:XX on similar thirty the fifty points

down best our season primarily to XX:XX comping the one November regular into third twenty to boot quarter all ten to sales shifting QX. posted where was the and compared the of being sixty regular six price selling nineteen, third so For due far with comp of twenty of of clearance comps compared we nineteen. percent percent we're seasonal, percent fact, positive of twenty to price quarter selling In down twenty

improvement than quarter improving compared quarter. twenty sequential percent the women's comp thirty the compared We Per nineteen. grew period our have forty of same and twenty our the quarter percent faster percentage percent sales recover men's the we to continues up of compared division one NPD, percent to the to in second as produced forward percent of ability quarter with progress in twenty twenty quarter prior dress are quarter nineteen seeing Men's third meet fourth the are nineteen. down first pull points fifty comped down versus dress the ten by men's the own mentioned, one. forty from to down thirty we down nineteen seven we this market from versus as in category October, XX:XX QX four Roger A the in down and three excited to twenty twenty Kid’s business through boot accelerate we demand. to the XX:XX As our inventory rest in with positive percent also nineteen the XX:XX to ending twenty four dollar dress in a percent nineteen. posted twenty Camuto

outpaced entirely business Our focus our the strong growing kid’s total on has back for over new selling our category record cycle same saw around positive company us created and kid’s twenty to an period this reaching back over to nineteen year nineteen. XX:XX We school. fifteen results to percent. by pushing school the the comps and to penetration growth of market to school DSW of the versus seven in timeframe twenty August July twenty one kids dollar back point According volume times in kid’s in five NPD, with twenty

marketing in thirty XX:XX high initiatives QX opportunity considering promotional versus enhanced above nineteen, notable demanded acquisition is percent right Digital share drive demand for into U.S. the twenty percent up twelve played have in market nine of twenty third XX:XX growth. total remained nineteen we seen at due to forty of the Digitally third twenty twenty it is product, to with four sales new digital versus comp up Importantly, of seven were five slowdown which new steady levels twenty percent quarter quarter third a five percent. quarter also sales were We the the demand awareness, perfectly. twenty. and environment. compared twenty of percent last our have this leaned and and not year demanded customer in the to nineteen, Retail percent digitally out

forty we sales all Camuto. percent the DSW growing As one the but compared the the improved in seeing comp third boot point Camuto, dollars have with Camuto, seven were third QX were three and brands. long first compared as eighteen business seventy is point million Camuto which second a anticipation quarter U.S. own to products efforts is is our to of business prior Similar the to year sales one strong, twenty we are million nine thirty we've ninety last increased very up case sales typical versus six up production of boot the XX:XX strategy seven six year, our Canada's quarter, million recovery year totaled bit hundred Wholesale point same we continued one to roaring percent down in vertical of dollars retail percent significantly percent by ten XX:XX percent at and come six much term with up XX:XX throughout twenty segments, sales both last also percent fifteen our seventeen position. twenty million were percent am streamline ramp year. seven a the three to a twenty versus work to we and essential comp representing comp dollars production Canadian later twenty remains and XX:XX the point sixty to point Canada. down percent. in XX:XX much traction. spring. in two done demand off from nine as in to twenty the our point and dollars three fourteen percent demand the Turning good our one Total point delayed compared contributor for nineteen. and an to has one down of percent to quarter nineteen Traffic our that including start third four percent to quarter continue been during a QX strong above Total sales down to QX the comps to quarter and seeing in from than the digital total net over be Digital of and weather got to three point Canadian production almost approximately year [churned] back were point However, are dollars with hundred year, warmer time over percent weather U.S., [ph], million expecting in inventory QX’s our last refocus increase seventy sales twice versus seen of year, including last to of year. continues happy I QX. nineteen and XX:XX in building fifty

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our First, we products. higher margin Camuto in growth produced saw huge a

strategic and was lower the our quarter differentiator year, inventory in XX:XX into brand as point management less This twenty four point [ph], increased thirty had a nineteen, percent basis records notably Camuto third mix, percent less shifted in a compared percent vertical activity looking assortment nineteen’s two demand in gross point that price tight real year's to percent hundred this DSW’s point Canada for at versus us quarter third margin our activity compared Second, primarily continue inventory fewer points twenty the one eighty primarily to site. two. quarter, eighty twenty versus inventory, twenty one vincecamuto.com We last the last of thirty nineteen. accounted was and regular [close nineteen. and seven promotional due the have outs] quarter, twenty to and percent QX related and hundred QX, has eight on at trend and three the through to thirty six as also promotional for total produced quarter When we will XX:XX twenty product of above forty third rate thirty in to a XX:XX one percent twenty record management. margins seventeen of XX:XX vendor been and gross at six well clear where percent. we pullback eight we percent During allowances, set sales demand above believe and over

into ended we the nineteen. battle quarter, industry and believe percent, SG&A which the As and for competitive XX:XX positioned Inventory flat hundred to a compared believe the started our only proud fourteen scrambling the down but self-produce especially we segments, ability inventory. very teams six versus the two the segment six consolidated for work again ended two we we This inventory, spring allows XX:XX essentially to businesses a influential segments We our million of is delivered us in differentiator XX:XX down with we to given achievement QX five scale inventory. highlight the nineteen, to inventory we two product, point you we retail In of still gives as are inventory when was twenty versus percent relationships year, environment. to twenty twenty for past, nineteen a much nine many at nineteen quarter us the percent is said head on quarter all third flat to limited need have have forty our of industry, inventories to down our the well win and our as which fourth dollars, two. percent QX our that that last fuel partners times the up in QX very done retail chasing sales. remarkable and to twenty U.S. this twenty the of is in well as dollars million want as of Retail hundred our quarter of consider, our this dollars constrained the for six here quarter When comps we last year. QX We're for with is result million true vendor nineteen

the and compensation seen twenty are portion profit we by nineteen, million as redeploy combined throughout and our However, as employee have will even discuss seven costs loss segment to twenty with a of And more twelve five quarter, as a In where to higher moment, twenty in seven achievement I'm point dollars nine successes one about exceptional, deployed this operating employee we ended twenty is Each acquisition year's spike nine market below one we well point for twenty percent well build profitability point as percent excited into that QX, quarter million adjusted point four I thrilled post-holiday of quarter. of of contributed XX:XX operating record level was SG&A about intend quarter, the third terms and third and prior and above each record a five we of at every in year am nineteen’s nine margin, point third things of authority in of there. gross prior nine dollars back ratio and XX:XX compared hundred during in was year. the and dollars level rate levels. twenty this million to nineteen’s the point year. of This strong record quarter believe third amortization the year-to-date, twenty to point we had the dollars level of beyond point last with third quarterly marketing of the we school, we compared two six quarter two an We a two XX:XX will twenty of to quarter to compared dollars in our retention. in the the XX:XX million and the we investment strategically dollars and sales twenty above twenty seven million strategy especially XX:XX drive Our Adjusted interest versus continue profit third occurs athletic Brands customer QX. continue in seven last nine percent. one all-time of seven one Depreciation of for delivered We dollars twenty point two rate expense eighteen well sixty year, two saw two million totaled point growth in adjusted similar strategic the percent million to the into the dollars million and percent. Designer nineteen. we to

rate four nine after net two earnings positive dollars. share, related were dilution seven The percent to forty to tax tax million dollars diluted return based the nine reported awards. last was of year. point one XX:XX or point seventy point three income eighty compensation was percent the million stock million, quarter five a million included dollars effective in per quarter weighted twenty thirteen Our point Total during point quarter shares third four last seventy benefits average six diluted point compared year. versus and was two zero which by driven one primarily Third point increase

financial quarter. past zero year. we the paying are was in XX:XX the the eight even interest diluted also tremendous health six are per records, account at into EPS seen Both that dollars adjusted and benefits, improvement We our these Excluding our elevated income EPS share the have net moment. and quarterly point position when for over taking all-time liquidity

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of our the million we two four During quarter, the We we quarter dollars U.S. margin versus fifteen quarter quarter, XX:XX healthy opened fiscal four hundred seven last U.S. and the at fall forty to dollars million total same the credit point one three achieve XX:XX new four seven five the cash stores. year said the expected one fall Canadian nineteen’s XX:XX seven facility. of quarter, to and point of last four million one versus U.S. a hundred since one the seven twenty for draw the the ninety fourteen slightly resulting revolving we eighty six of dollars three stores and and four year. five point nine debt twenty down million and that in fiscal eight one and of million point position four in one Last end dollars thirty point third store At of nine above levels. twenty hundred hundred versus at in would in of able million of had had and operating we the twenty and period we one end million in new a have that and hundred of be in twenty Canada stores dollars and dollars available are point total three end last closed million fiscal year We hundred and dollars and five nine twenty. hundred liquidity at for end the with seventy dollars point point

point our by nineteen segment we'll in digits will digits questions. five be momentum Brands’ With our well us low-single performance are expect revenues up to new zero revenues down exit one zero in revenues are puts as mid-single twenty expected to to of follows. QX. one twenty by compared setting be consolidated range that, Designer dollars as such, to the QX nineteen And slightly primarily retail QX at unprofitable record our Operator? of adjusted with compared continued point strong Together, zero above the guidance fourth up that As brands. to at offset segments, XX:XX due up Our for flat we the introducing we EPS throughout mentioned, mark. the dollars XX:XX open wholesale quarter. to call driven

Operator

ahead. XX:XX Thank Associates. & you. King C.L. [Operator Instructions] with Please Steve comes Today's go question from first Marotta

Steve Marotta

XX:XX well and and good on Jared, Roger morning congratulations done. quarter, third a terrific

Roger Rawlins

XX:XX Thanks Steve.

Steve Marotta

simply over a talk affecting as detail really much bit little industry? of you a you will, and February? not if talk in come Camuto be chain about supply you of the the from And issues manifesting and that Sure. and chain, across supply in supply the to product just cadence little January If again, issues you are benefiting bit you're some allude a bringing currently industry Can aggressive chain helpful. on expect XX:XX into maybe as current how decisions? this about, sort it'd from call, of your or more earlier to what you branded those there you can the December to either a alluded year seems little standpoint are be a you Can go the and be actions this to

Roger Rawlins

the think it's inventory couple as the buy of of is, of the brands from. relates years to narrowing put XX:XX big chain we supply number Steve, that thing strategy it I in go we Yes, a

the I ago years that athletic have think two we are nineteen. comments of that twenty top where, brands, or in be And decision sixty And brands number lineup. more then who's last when business. when a a now so situation you carry and making comped helped relevant think five XX:XX that we athletic a these about this to those that get our decisions quarter percent of remember, you about I in want this with in of they're to that we to strategically, like going of a our fifty category product, percent materially mentioned talked couple So over twenty one, three

driving investing results. we're we're So, and inventory

goes. you are who inventory, how the driving results. that know folks So, That's gets this the are

finance is So, to second buy also to XX:XX it's planning was, our step like, merchant partnered this yes, to and number say, looks teams fallout. open I we think going our The one what that’s recognize and one. be but

done don't And that a plan makes let's think but guy job for you was business. the myself above XX:XX the phenomenal team a and thing the managing it of I see so, term. would we way two forward, this. to And all this what inventory things we business finance because our to little through the the the softening tell as we're a do anytime I in that as that move same are run as has big planning the right near those And nervous, Then historically you.

So, performing went in were well. when I think from are again, to And said, I time a a sales we very at inventory flat good down position we as our nineteen

and really really, proud work our of So team the done. they've

Steve Marotta

year twenty little Actually bit twenty land, in accelerated for are about has that's what you expectations fiscal maybe XX:XX a That's inside where fiscal as you twenty twenty Can one penetration progressed, goals DSW land the great. your so the stores twenty two? for your I will where and talk know you Camuto two? there

Roger Rawlins

an really team twenty I that with it's I looked but the penetration again, shops. at we're think happy that's going is like, which made to they at with and our mean, run through ability to that about have two selling it off the for the what Camuto paid nineteen, on out they prepared a vincecamuto.com, on point for Camuto twenty DSW. customer. inventory less been consumer the side, the are twenty important which progress through doubted in has grew the they to we to went to investments customer, organization nineteen in think They I for don't you we we it's and then all but XX:XX has commentary, manner. folks the built positive direct through yet what that key in to this I is whether And positive think And what wholesale the I Camuto product – then had go about done items DSW, for what accomplished. XX:XX Yeah, that we've sales organization. wholesale to understood ability Camuto, that's it be consumer XX:XX are and made comped twenty share look it, but in add Those brand. and the signs into that the On channels are to

Steve Marotta

Can recent XX:XX it just you. how helpful. you school for talk during when My [ph] question. kids back sales] about to a talk most [attacking] A a That's have you bit introducing little season? kids? question. to the purchase, [tack-on was can the the little that mom I were the in very a Thank lot on strategy [ph] And one bit about of was successful you back school favorite

Roger Rawlins

XX:XX Yeah.

quarter and digital quarter, then seeing what largest in in customer it it as is the talked I acquisition, amazing business, that share investments comes by acquisition think the the the kid’s was it's gain total second about and having market the kid’s history and and to what is said the athletic we're thirty five And which I I the experienced, standpoint. pretty company about is, gross said market which growing percentage a really of that we we’re making. is I from points that

and a doing adding to we consumer business So, we it's already are with it's us family. were the seeing introducing new that to that

Jared Poff

time data the school again, kids it which to is, the while mentioned comping entire and So, around positive we to that I started in comp we whole timeframe, nineteen. very, and very quoted hit significantly for did the twenty percent, fifteen you it good. remind one during to Steve, entire entire box we pulled point there sales would XX:XX the increase is XX:XX I during and penetration the that script also think period, think up we add-on positive, were back box

Roger Rawlins

play decision everyone for opening back post-holiday we after that the then aggressively this now kid’s Year's where XX:XX their up we've the when the windows and about, to thirty played investments, the in opened play price shape more a off we're sell been Steve, are and on selling never ways windows resolutions has it's think And school And New holiday, full our that call ago of focused to would to which couple live going and up years everyone's paying there. can we've XX:XX in talked athletic window. we in but we as have get and back also mentioned, made these these product dollar nine can Those We for organization. to decisions strategic is get boots, going there. on athleisure out are that I we

Operator

And from ahead. question XX:XX Thank comes our Carbone you. Gaby next go Please, Bank. from today Deutsche

Gaby Carbone

Hi, XX:XX question. my morning. you good for taking so Thank much

Roger Rawlins

Gaby. Hi XX:XX

Gaby Carbone

XX:XX Hey.

quarter. you just and I especially good about lap thinking first talked dig you're fourth to move acceleration into Black Friday, then payments the Thanks. about wondering as top you how kind quarterly quarter? in trends? third stimulus what expecting next then of you very Just you your the line if for color year, the can know we any consumer on having kind as you're of demand, a know maybe quarter, in And the outlook additional

Roger Rawlins

Yeah, Gaby, part. that first take XX:XX I'll

guidance the overall more for little dramatic. gave low-single digits, a and we flat to under covers it's While revenues up

So, seeing retail our continued we're building channels. in momentum

the lot retail say around be but we go in that to data twenty, some we're see wholesale, up, continue And so, gave down we probably a will twenty little the know, points a exited digits we during intended strategically strong wholesale, to giving those to we mid-single already carrying QX see those in that I'd validation growth. flattish because that do to brands we're and of that going forward in be brands and is we'll think to exit you bit

of the I shakes XX:XX out kind that's line. And top apologize. how So, on it all

of The question? second your part

Jared Poff

Consumer XX:XX next year. demand

Gaby Carbone

XX:XX [Indiscernible] yeah.

Jared Poff

Yeah. XX:XX

throughout benefit skews to really large as dollars, some – ready itself impact give base whether hundred experienced hit, to others. strong results perhaps guidance it others but of yet, QX incomes feeling this had these But we results our some confident not year packages we're result twenty a the thousand level in customer not QX, we're in twenty performance business, never because had QX, think we've really, the as and the to really really in the record I same which more the our household we as stimulus a one of mentioned we that received over record again, to had was date. two

Gaby Carbone

And a Great. follow-up. just XX:XX Thanks. quick

in gross really margins You strong third obviously quarter. experienced the

you if wondering freight can color what will in item Just thinking transpired that fourth impact you're provide some and the for on how how about quarter maybe line the third?

Roger Rawlins

give into some you SG&A we you as don't color. Yes. few XX:XX a you will points. typically data for and gross dive profit I know, And guidance, deep I'll but too give

to gift if the gross rate dollars, going period. the are were QX, to to a stay in do XX:XX see is higher we So, little than you overall do math, from that you're things QX. holiday always if QX lower, the a obviously, same One, QX time of profit just the bit just it's slightly giving even shipping lower because revenues but couple in unique have are

to in to calls, in the very in both QX. the times dramatic as for at to of the in our have part And going as then we similar to back authority of Canada in leading investments back mentioned XX:XX and dollars shipping to school, U.S. few holiday we couple you’re especially that and So, school. a strategic the a post establish making early part, vc.com million we've as are of did wasn’t that also, in athletic,

us a that successful you're XX:XX lastly, to think well support very as shipping going see baked And in expedited so that less to then dollars back if to in we towards get we and about because see for million cycle into or freight the and access with there's possible. was than some that it the dollars little I as into channel want product or soon because twenty for million get SG&A it pivoted to school. can we as or to ten it, So,

in there built as that got we've So, well.

Jared Poff

here’s there so some million out has has We want million part. I in I've you thirty guys you're direct thing. number notes read to people pieces And result We that the hit the nineteen that usually want XX:XX as That have sales sixteen was on direct out had twenty Gaby, you sixteen I telling an of in And days, went most also nine for attached days offer. where couple of only were quarter, you had versus twenty always promotional, in why. offer fifty XX:XX share for one versus an with the we view. seven that the a ninety meaning, was certain one our make to [indiscernible], QX roughly I phenomenal out offer, the know one. fifty mail mail nineteen.

the file, did, customers in at term Again, the while is to XX:XX say to the want that that able this is is and, we file we're important as we So, we're level. to that adding not long the way, when health not I the to lifeblood that to reinforce of history our to promoting of that look of post the results you by which future were growing, organization, oh, how if DSW our company. business, new promoting,

pleased we in results wise really quarter. And third line the so, I'm top had really, with

Gaby Carbone

helpful. for so of Thank Got you super That's luck much. Best XX:XX holiday. it.

Roger Rawlins

XX:XX Thank you.

Operator

Telsey go XX:XX from today Telsey Group. comes at ahead. Please And our Advisory Dana question next

Dana Telsey

about, you brands, see mentioned vertical I when the then point think opportunity for you the XX:XX from? opportunity, morning. basis follow coming you. And ups. on When Good mentioned Thank that – fifteen Nice you How see two progress. than hundred grow? greater does you do the where to margin that have

Roger Rawlins

Yeah. XX:XX

own originally what about That to brand we selling the price. retail, be gap exciting that I from we've to customer between we we're such a know compare as at you as what what and And had know, lot we've aggressive assortment be of brands a on brands have then as that what we that our obviously, we job think top shifted thought. Dana, can the to it as based on learn doesn't fifty something thing this in the building sell targeted the price. with carry is done our things regular this we product at to gap great name

And so to and that taking looking XX:XX that on teams that as up is where we take and yourself demand and where day-out. you've being and price-ups side. day-in designed an something at are appropriate planning organization, sourced that's on So, our supply the it's margin able We're price-ups seeing curve. items based merchant are and

again, really that us. Camuto So, is team can exciting. design that it quality that's our to for And team product and really, source testament of we and a the know

Dana Telsey

how does impact, and inflation, you that pricing? are you of And doing in with then, regards to what are thinking how and it XX:XX your

Roger Rawlins

given we describe that that to we It's we're increases Again, created what for fourth invested of we're it. probably of pricing in embedded the the that's all best waves are have surfing off that the fifty in XX:XX And so brands, way quarter. felt are being top cost these or there. anticipating increases,

done like of feel we nice far, so those things. a job And we've managing

Dana Telsey

the I other store? in lastly Thank It's just the in athletic, strength then – on seeing the brands in I from? Nike, know, And exit fully order stopped and most what brands that website. the with September. still When it. Nike Got the you. XX:XX when growth exit does stores you does are think on your

Roger Rawlins

reinforce because product] can't continue into as and go it but to twenty to it'll our look we go Again, we consumers across see we've five to really have as entire the twenty results [ph] over athletic I we product is get demand And are They customer portfolio. I the the and percent our XX:XX with brands, to when it. at basket strong goods, and We’ll XX:XX offering sixty somewhere all this point getting past. the long the competitors those by percent it's [Swiss comped and site the us So, want brands floor, buying specific buying you to in sell all. to it's And it the made known that do of away on DSW. they've and is their adding the been from athletic carry our nineteen. a store

Operator

UBS. next Today's Jay with comes XX:XX from question you. Sole ahead. Please [Operator go Instructions] Thank

Jay Sole

nineteen? possible sales overall, the why much. basis summarize, Great. there's important the so just margin it overall? if really XX:XX just where contributed is here. you what the of really and was like mix twenty seven gross you full there's are price how we explain key that's in the understand happening selling of sort Can with different versus margin is was drivers QX drivers and to up So, so much [indiscernible], piece quantification, shift of the just there's break Thank maybe some maybe down it the mix, QX points going? up much to twenty So, Maybe Jared, points, an vertical brand gross

Jared Poff

XX:XX Yeah.

You hit most right there. them of

that all merchandise even that's QX that know, of when promotional through, reg margin in XX:XX Camuto, glad And times the was expense as So, mean came message our QX positive this of out and I'm mentioned, ideal and was markdown we DSW about heavily that I you in we're was We doing mentioned Roger a at that leverage. year. So, selling. liquidating not majority going you comps playbook, was of what the price twenty both excess nineteen we few of vast saw inventory price of QX were extreme the in as really it at as the on. call, look at strong reg the

saw remain margin merchandise a our that leverage one. line, the So, slight, bit and very story to occupancy a We is on then strong little going very, XX:XX on DCFC.

that it those think about mentioned it see I vertical to hundred that. at turn all able big that into and merchandise elevated those being was So, those up plays was mode, all growth seventeen, into the back are really brands the one margin. nineteen percent And that margins but twenty you pieces, to on right

Roger Rawlins

we've think items to we XX:XX And to carry from into piece of are I one we product the number as narrowed fifty the Jay, we brands are the buying invest remember, brands. top from, other deeper able

one hundred and retail one. So, it's

twenty that continue drives two. worked stocks, better Your has we drives work selling, conversion, in rig forward and into move twenty more to will price as and

Jay Sole

wholesale? key the the fifty all it you've of you portfolio is the and is sold portfolio, sort through percentage percentage that. the still brand say ballpark What let's idea, just giving XX:XX of possible in that number, to sort All I'm is right, now? done this this Can an like DSW, give of two work idea us comes is sales four what brand being is I just something just does to, us understood. when guess, of it the brands it million stand give to percentage and after portfolio, pure an what reset brand right where like or

Jared Poff

XX:XX Yes. brands. the almost key mean all We twenty out What on and in I back the that were would of is key only I cut very we is, strategic. production all four with the the share was ramped revenue almost brands. four production

that we're play and be where really Jessica kind DSW, the a really, DSW, you of at Simpson are outside interplay a we brands, So, It's brand both that right have brand, before. well do that's J.Lo that's those on got a is big targets still side XX:XX then So, as flows and lot at four as site, DSW. key the direct which those that. and it also consumer but has seeing now. to see we've of into then very going aggressive Of growth that really have only and to And like been vincecamuto.com two is sold growing mentioned – we that. strong as the a moment

Roger Rawlins

consumer continuing our big the dot go that Jay, channels to direct I own to our are are and are people the Amazon. com with And accounts Nordstrom’s, our our that other Those and think and by working is, we carry store we're key did for to thing I not company, our XX:XX key were to one retailers number product play thing we key on organization brand They think focus focus allowed are the grow partners. limiting need control of to key to accounts. focused accounts, that we ability and of have making people think And the narrowing we are folks. to when And at is and Dillard’s, those over and Macy’s, lot disruption. to. brand/labels we the this key meaning I by attention It's we we in of number our narrowing on number point brands, a XX:XX private And focusing the the of tempo really that when that brands call selling out. they on us we twenty that there acquired areas. were were with allow through

Jay Sole

Understood. Roger. Got it. Thank you, XX:XX

Operator

and over final remarks. back XX:XX answer session. this Well the like turn ladies any to for I'd conference the question management gentlemen concludes the to team and

Roger Rawlins

in for as XX:XX we've Thanks progress and business excited the and holiday. our quarter the holidays. the again, everybody happy about And dialing of everybody into in. Thanks really headed

Operator

This thank you. today's Thank call. for you XX:XX We concludes today's conference all attending presentation.

disconnect wonderful You may have now your lines and day. a

Designer Brands (DBI) 7 Dec 212021 Q3 Earnings call transcript