Earnings call transcript Q2 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Designer Brands Second Quarter 2023 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

I'd now like to turn the conference over to Justin Fischer, Director of Investor Relations. ahead. go Please

Justin Fischer

XXXX. today, results Earlier July issued press July a XXXX, Good operations the for comparing XX, ended period of the ending the release to morning. XX-week company XX-week XX, period

during Please note that specified recorded of financial results otherwise. adjustments call certain GAAP the will excludes that today's under remainder we the reference unless

earnings, press release. our a reconciliation For reference complete of please GAAP to adjusted

Results company and may today's future Additionally, materially please expectations, the no constitute update forward-looking note forward-looking the of prospects press public obligation about the statements. that to any assumes with plans statements. the differ in due The various the remarks and listed company SEC. to filings made factors company's release

Poff, Officer. Joining Chief us are and Financial Howe, today Doug Chief Executive Jared Officer;

turn Doug. Now the to call over let me

Doug Howe

Good morning, everyone.

this to results, quarter's quarter quarter during work team overall macroeconomic backdrop. in our want and the we throughout that to posting improvement first Because against challenging addition comps I from pleased the dedication their posted that performance, quarter. sequential the a improving thank improved of for I commitment Before am our to hard share that to out played discussing team's

growth also QX our improvement not and as as year-over-year the second across top our organization, decade. marked Within enough. and lines. to highest margin well year-over-year along committed gross rate Our producing past increased the is bottom over sequentially Sequential though are we

level environment I'm simultaneously in goal healthy and with reacting to that we team's to consistently, a reading pleased segments. to retail inventory our an managing work while achieving towards brand promotional As and continue both our our appropriate highly efforts

an excited the TIGRE have we drive are showcasing completely our over athleisure diversify launched to are perspective, as profitability Le rolling our month also we we brand term. which and consistent and own longer We brand, collaborations portfolio, QX, new out operational strengthen will first a new progress. the of in From are very

a announce includes take hire the as recently to us stores, that Warehouse. Claire very incredible at to Michaels as I moment been during also to Laura of new the of brought Shoe and board we Designer that has important Merchandising want resume an made with thrilled a time Laura joins month Macy's, Officer. Denk I'm Michaels Chief President highlight July. on most

Laura help on-trend will bring customer will background, augmenting the of to leadership, positioning both own phase drive will retailer. our time strategic our growth partnerships, DSW. me priorities experiences overall driving welcoming and specific join brand's of Please her next Laura. With This the ability growing her elevating of more DSW and brand importantly including extensive in and inside national and to builder and performance, us on and allow strong forge we'll merchandising owned within focus be as an knowledge our me DBI's channels. credibility brands vendor outside

we brands growing to elsewhere new our us business. that distinctive of has Combined, retail give business exist that clear not synergies growth. become industry. the have legacy and positioned the in actions DBI's to well for made my phase mark moment as our and to on we've a hit recently we I want and I XXX-day we ensure take CEO, to in and increasingly It our businesses, and progress the distinct taking valuable they me reflect do are the next two new are seat

setting for the strategic follows ago, which talent hire foundation realignments our to few businesses, the while our needs a align closely resources more we months instituted strong of different organizational aim Laura's growth. the and with

we help intend seasoned to we the brands brand announced this that growing Additionally, Bill from to our a will builder Jordan business. With be business. recently stepping lead down hire change,

very it unique the and deliver thankful immensely is we footwear Designer growth best. Designer have truly where firmly help Brands the that to I strategic company any in him Brands industry, has the other the led, for made future. advantages unlike believe will is wish Bill work are today We and into

as retail our our Turning and net last declined year up the the the down of points to in but and launched XX% Athletic compared casual net results, Total increasing driven roughly Brands offerings. quarter, Keds XXX by newest versus improved X.X%, sales Le our the strength quarter comps quarter second while TIGRE. versus Topo wholesale Designer were sales second X.X% quarter's to basis last in decline, brands were integrate year brand, first we

priority, full XXXX strategy long-term we to Our ahead doubling move a continue our brands top and XXXX from on remains speed sales of to own of our journey.

our second sales total basis brands the including has of quarter. progress points quarter, DBI This revenue. to year-over-year Year-to-date through XX XX% into penetration, increased wholesale the continued own by third

are Le thrilled with recent We launch TIGRE. the of

We equally growth in seen expectations our meet performance. Topo terms are continues to proud Athletic has that steady and of

have now and become U.S. channels the We building new licensee Puppies exclusive Hush are to with also expansion. Canada, excited the we our continue DTC and as international in success including

Ranked brand. fifth Le DSW. of by on shop hottest were able customers brand X/XX, TIGRE And this X, buy need as you summer, for as the launches launched to to the for people.com at August fashion our newest

with the and we in is XXXX, be As was our in comfort. with first work brand athleisure their thrilled The Raised athletic the into ever launch collection. to has includes and street reminder, Born this TIGRE timeless rooted launch, and Their bringing culture new I athletic modern strategic the for brand. TIGRE gone selections footwear City, to Le City national vintage in Wild, is are a couldn't a new men's women's of the York new Anything us. the the approach we both that are Le about and and inspired and in style, inaugural excited by New this footwear spirit Ready day more established line design launch loaded space,

already by owned U.S. brands. related Wolverine in U.S. comfort was to Canada. categories Turning to informed brand licensee expansion is an in Puppies, to had stellar a exclusive DSW This distribution the with the Hush and exclusive agreement to our highly signed and we relationship special and the recently become casual of the

take over Now official to be the independent we e-commerce ability the America. the the sixth license, site, as which and brand business, our will wholesale in will hushpuppies.com have we'll North

been first of up growth Hush DSW of quarter driven dress nearly Puppies XX% is and with expression within versus XXXX. casual, robust, has men's our across the growth for last anticipated boots. year, Excitingly, by spring product

integration Returning continues at advance to as our Keds, in the our progress to expected. quarter

launched also exciting Habits and both with quarter, collaborations the stock. We Recreational in

launch cater to Pickleball this, sneaker on First, court Craze our Recreational sports the designed court Habits in enthusiasts. white colorways. our and is the and to latest Saks produced sophisticated take grey a classic Complementary partnership to

We've Saks complemented by implemented a influencer marketing activations robust campaign. at digital and

with pick an of of of this all Saks court Avenue in store July. inside part excited of launch, top As during customers New Fifth actual we York

the only to and of through Avenue XX. Saks product And our [ph] launch, on beginning be are on was Fifth part keds.com hosted we exclusive initially later channels. hype Saks month, the exclusively in-house September this available As bringing

Emma Crown positive dsw.com first during At which collection engaging the content and Robert's interactions included Vintage, curated drove quarter. buzz. video Emma's customer launched This on Fits

continues coming seasonal to boots our target content new around customer. with partnership booties. October in long-term Crown with This and have relevance positioning Emma Vintage and strengthen also our brand We

a we're hybrid At launched pleased dress-meets-casual shoe style have men's line, our Vince Camuto, FLYXXX, to collection. shoe first franchise

reduction and the is weight production, sets a line use technologies rubber special often including out lightweight this this midsole from and pack apart features return and rest franchise non-athletic build durability. cushioned the which the we traction for found cupsole of men's not like stability, for a As in a supportive shoes, of and for outsole energy

We world. have inspired is the merged to Camuto Vince the modern innovation aesthetic on likely comfort compromise the customer who post-COVID to with technical European comfort target in male less

was Footwear highlighted News. XXX recently fact in In

Growing the male style. of DBI remains white our of of Le space believe offerings growth opportunities We from long-term. customers and increasingly Camuto our lever that new men's unification a us business that we with are traction our prioritizing believe across one Vince over TIGRE will comfort the largest and represents significant help gain and all

where Vince continued men's saw we QX in sales Camuto was up Our evident in XX% success results, dot.com. our

brands on we This are our point top also relationships strengthening committed the our as and position distribution. to to continue are leveraging the our remains relevant customers. of business national that with as We strategy track our expanding most

our and last announced amplify we of strategy, that quarter. to partnership Nike part our we As edit with continue be excited

will leverage customers offering our We provide relationship an elevated an assortment. across athletic to digital kids, and this men's, giving and physical women's

customers. continue value of our more providing to to Finally, we be cognizant increased

and is strengths greatest vendor buys with our of long-standing associated national brands. opportunistic relationships large our One closeout

quarter. We the an Sperry, events to and long-term of us we forward As our for offering our Merrell to with to provided buy customers relationship such, on advantageous in in opportunity executed that Chalco fall. products the an as our Saucony, with compelling savings offer Wolverine, customers additional look part

year I Before to full going Jared, I'm it outlook. our over hand to quickly to speak

Although we today, go holiday end Septober on-trend driving a anticipate the to XXXX Jared QX. the laser-focused improvement sequential moments. demand on we continue into fact, we and potential we full We us, this and will selling increase, with meeting reaffirm supported season will from still in through have detail saw few have of of into the our guidance, year and continue product. pressures our by be and ahead more on to macro the year QX in

are committed value-creating to forward, move prioritize we shareholders. returning capital As we continue our and to to opportunities

has you I Brands million Designer our fiscal capital back returned 'XX. of a on the half to dividends back speak to repurchases. strategic shareholders all half strategic as our $XX.X on we plans X, initiatives combination more through I'll September the through updating year. year-to-date, fact, Jared let for move and the In forward through of look share of allocation

pass Jared. that, it to Jared? With over I'll

Jared Poff

reiterate will our tremendous say She in morning, for vision business, Doug, tactical growth. Denk unlock to meaningful that had that driving focusing will and be anchored our target President and DSW be welcome I everyone. overall our asset customers. Laura which you, new is our want and there that help to a of experience, at Thank believe to and to good comments current merchandising, as strategic will am our I and leadership on how DSW growth of excited We Doug's DSW. be Laura's marketing all us

line quarter feeling saw to headwinds. the challenging We in increasingly expectations. allowing sequential current year and this through with second we over EPS our our continue deliver and both of a macro sales full ability are and Doug's a team's as pride our margin. environment, managing to in gross industry despite quarter first guidance us share $X.XX, And I of continued current in adjusted the result, organization reaffirming our improvement

detail let me Now a on provide results. bit our financial more

environment, $XXX.X The continued all results. contributed the second quarter's decrease. consumers, the retail industry last X.X% sales inventory an For first from million the this pressure year quarter, and across to to decreased extremely improvement on from and an promotional high

From but total our by a comps Keds, up the wholesale acquisition Athletic. Le launch driven were retail XX%, sales compared TIGRE sequentially a of down retail our sequentially the of QX. pressured segments, to costs and were acquisition U.S. roughly improved year, X.X% but In X.X% perspective, of down retail improved quarter, first in Topo from the last were specifically also from quarter.

comps just of XX% on of comp XX vincecamuto.com, While our a roughly in comp we with Canada of basis top the DTC quarter one of recovery last up second posted was comps very at top down points channels results this XXXX. seeing pleased quarter, with the in over We remain the XX% on X.X% of premier strong are year. post-COVID

XX.X% in the markdowns. and The last basis versus driven by XX.X% lower second improvement quarter basis primarily was was margin year, of points to XXX an sequential XX points sequential increase compared quarter. last improvement gross a of Consolidated

margin margin up gross the to gross compared points of continues fundamentally strong XXX be to XXXX. our with second Importantly, quarter basis consolidated

cost. and of promotions, a ECLC centers rebuilding centers, lower our deleverage was increased of fulfillment was consolidating business Center Year-over-year and favorable distribution also specifically store Columbus expense New of profitability expense. the our fixed including fulfillment allowed offset consolidation improvement variable us of The and clearance to our achieve freight, leverage. level Fulfillment the partially of logistics costs, into driven by more occupancy the and impact continued by benefit shipping significantly fixed This Jersey our

XXXX. adjusted XX.X% of Our the quarter to ratio sales XX.X% SG&A in compared for the quarter of second was second

first experiencing our current are performance, out saw deleverage given we and quarter. perspective retail we improvement dollar sequential versus a Although from rate modest

entire we awareness we increased customer marketing build on may equity out pursue could this our investment trend and forward, other as but to Going sites opportunities DTC pressure sustaining This the volatility execute maintain put will to trim ratio. across and continue business. rolling brand to strategic see costs continue initiatives, new

of first X.X% interest the compared sequentially $X.X million of adjusted our For improved effective XXXX. last profit operating to had the second expense quarter, prior year. of year compared to XX.X% sales results second quarter quarter, X.X% on adjusted was our the we In X.X% the tax and from in and rate XX.X% in net was

was second or last $X.XX our adjusted or or $X.XX million million $XX.X Finally, quarter diluted million $XX.X $XX.X $X.XX in net XXXX. income year, versus EPS and

second quarter down sequentially to ended inventories XXXX. of million $XXX.X ended to We quarter. the retail compared from first down of $XXX million down with million, X% quarter and roughly and down versus XX% year compared XXXX XX% basis, in inventory square footage $XXX.X the second we last On a the QX

our we feel year. Keds, heading and action and to the inventory we second have into down have ensuring about opportunistic the Wholesale adjusted take remained approach necessary inventory we when Topo nimble to to on and Because in fall, XX% last our quarter would good the XX% assortment, down inventory of ended been for have our buys. flexibility acquisition compared positioning chase

price reminder, end $XX.X of our the a final our In quarter, As the stock under own Board-approved common we of offer, Class a our announced which repurchase which share invest at Dutch share the Auction million the included offer, A program. to of of $XX repurchasing existing stock. Tender per commencement us in we allowed announced at our results last mid-July, the of

use we capital we at maintain shareholders. of it to our our Directors that time and of dialogue our As capital strategy. allocation our most believe prudent ongoing return is Together, always, this to Board on management between to an continue

strategy. by result, a of of two we market. the vote open million the have added purchase shareholders repurchases. million In Thus X, and through far in based through quarters date, to $XX.X continued the share have As in to open $XX.X trading returned long-term market total first as XXXX, thanks quarter, fiscal this in to to dividends we repurchases. third continued view shares a We our confidence September on we that the

our includes with the our total and liquidity, cash quarter ended $XXX.X We $XX.X of million. cash revolver under of million and availability which

available we of the credit As quarter, of $XXX.X had our facility. draw revolving end to on the million

the activity as mentioned end second repurchase the our that availability current share the credit $XXX.X given million However, of draw since of X/X/XXXX. was to quarter, previously on has occurred revolving our facility

$XX five-year fund help proceeds draw entered term June the The the had loan throughout allocation priorities, course on As closing XXXX, year. we immediately announced million term down revolving and that anticipate used the that subsequent previously we Upon the million drawing under loan. a drew reminder, we facility. XX, debt be facility, will to capital credit our the that pay outstanding of under into a additional $XX immediately of to

remaining We our Act $XX IRS. due the continue the us of CARES await the tax to million receipt refund of to from

now the the through ultimate such, our refund request channels standard We are this appropriate happy Treasury work we Department adjustments. way IRS has as the formally no the are And to IRS its approval closed with to which waiting at simply applies and for funding. refund audit report that for on

I current on Before conclude, remarks a to I our want share few guidance.

the a our squarely multitude quarter, the pullback discretionary updated last while lie with with continues delayed consumer later consumer pressures, discussed guidance macroeconomic in largest consumer inventory, also the the contemplating recovery in assumes health and As competitive spending the with to views, other until year. a prior including Consistent headwinds. overall a uncertainty continued of of

on consumer, comp as comparables to continue headwinds lighter. pressures the current our subside consumer year the prior begin to potential to therefore, That improves Our weigh our the as balance macro that assumes for on throughout and said, the worsen being become performance pressures remains. guidance year retail and the of

cover few to want updates do assumptions. I within a our

average the activity, for now With to previously expected shares discussed count be repurchase our weighted approximately is share million fiscal outstanding XX XXXX. diluted

interest Thus our of the average is the approximately lower for loan, benefit expected share full the $XX year. weighted figure. fiscal incremental count for loan XXXX expense of to term outstanding With interest essentially EPS new offsets now term the be the the million

to XX%. anticipated estimated tax be our rate Additionally, is

sequential XXXX mind, range reaffirming in EPS of to $X.XX of this of recent given and quarter and terms seen we all guidance margins, $X.XX. our in With sales are in the fiscal improvement most our

we path new made evolution forward. including as As and our noted, of have in a builder. hires, in brands, recent growing progress incredible have existing company, journey Doug launches brand our conviction partners as our leadership a brand with strong accelerating I

call With for the Operator? that, questions. we open will

Operator

comes question Carbone first Today's Instructions] [Operator Please ahead. Gaby with you. go Deutsche from Thank Bank.

Gaby Carbone

Good the today. for all morning. Thanks color

could as discuss if the I important. was versus maybe performance, season, then category XQ. if boot any, saw So XQ look fall category first, from changes in becomes the to the you obviously, you wondering we quite And

inventory thinking you. how curious Just there. you're about Thank

Doug Howe

continue Yeah. Thanks, see gain Doug. trend that Obviously, two reacting Gaby. really buoyancy in with inventory. where momentum. [Indiscernible] This we the to the capitalization category. There's category performance is managing casual to to continues the just

So that in good business particular. feel about again, we really

a new point, which time on. a very have key selling. category. Second penetration We the It's talked very, we boot in for dominant about is the Septober, lot early

So I us of season ahead majority the think is that all. of

some by are fashion on We goods, initial driven seeing results western. nice particularly

majority about of So us. again, we're ahead is optimistic the cautiously still of season But that. the

Gaby Carbone

And I in one more. sneak could if just Got it.

into across are there it's So been that activity? promotional then more Curious, seeing And high you're inventory levels like obviously promotional there. the moving on seeing categories front. baked ahead, your And still the just you're promotion mentioned certain out kind what you marketplace. guidance of then

you will view the think bit marketplace clean. you maybe if curious when any be more a So have

Doug Howe

the and good largely shape. margin is Good work actually that that managing a is have we Yes, done question. strong really inventory by fueled our our fact of Yeah. in really

need didn't to So feel promotional. we get the overly

the back in landscape category. particularly move through improvement we the the are We half, athletic as seeing

to less think start I we'll that to normalize, be will which us promotional. to start see hopefully inventory allow

So said, out choppy as macroeconomic there. environment we're to saying a it's But very that. close you

So definitely we'll it. stay close to

Gaby Carbone

so Great, thank you much.

Doug Howe

you. Thank

Operator

Today's go [Operator next question Instructions] Please UBS. from Mauricio ahead. comes with Serna

Mauricio Serna

taking thanks question. morning. Good Great. my And for

color wanted maybe we we some half, QX And to big quarter-to-date QX. QX. could and what the First, difference any should segment particular versus sales I about if like second think see between any in on ask if provide you growth you see in on performance,

because website. little Then just about the SG&A on the being the launching a probably the and pressured margins, of talked probably you the SG&A more marketing bit rate of

growth accelerate should the about Or in mean think half? does that dollar SG&A will So second that? that how we

lastly, the And see then very to for point? this there's sheet on on even just also there balance the continuing in you. balance QX. like how more a all sheet, encouraging leverage buyback Thank potential higher the given at the Is

Doug Howe

Mauricio. Thanks, Yeah. lot a Doug. to there. This unpack There's is

I questions. have think four you

So to the two I'll first I'll QX, the the hand the current to performance Jared take year. speak SG&A over it QX then on and to balance of and and and

quarter. don't in know, in We in As sales to and us said maintaining QX. feel, our definitely QX seen as lead you we anything to notably think about that, guidance, QX on QX sales against most outlook. comps would we're change softer that we why growth regard is which comment a and certainly, tailwind, the up haven't our in we're we Having current

of And bringing are tailwinds as going we elevate excited the about. Nike, are fall optimistic about very awareness, kicking continuing we're really last return Nice that DSW quarter focus then secondly, partnership. the to on we to campaign shared be our that to we're which off

tailwinds macroeconomic two through we're those obviously again, balancing, choppy with headwinds. those are we environment, those But again as navigate So tailwinds.

Jared Poff

year-to-date. against current get change a our we want trajectory make that said one this That's times. especially is we there reiterated a assuming always current easier is why Doug thing reaffirmed, as believe, experienced it's to are clear, comps, in been we've few we pretty that and that guidance, I material which belief. echo had we've to In the case, have the we we And sure

to certainly, but what I would is called but There have that, say, not net that why is that haven't that anticipated, seen see out. is we To macroeconomic pertains our but we've planned that's current date, the there. a turning -- we risk is to on why seeing yet, we reaffirmed that to in now, turn degree guidance. But and position that trend guidance conditions and as it is the it has for

questions consensus moment spoke you in and mind, initial million two legacy I'm we fall. that on for stripped is have the your the where our about glad Keds, that cost to a of my I talked very to week. the probably the because about right into want what initiatives because $XX $XX most take also business. To for the savings reorg back XXrd that last for overall company or And SG&A, year. the actually asked you guidance modeling said disconnected SG&A SG&A our now, some out that done about to about we was million But have had year-over-year Topo we and of we add the to of

And on consensus a year now, reflect not right total that basis. I'm seeing

it's [ph]. has SG&A fact, below like In looking dollars most consensus that LY

biggest disconnects that's in there consensus. out I the of So one that are think currently

of and I new a in just look there's back guidance. I big to That's a to want get within year that you to, from the dollars talked we guidance about the few coming loan. million change that I kind $XX if to fall, to So spring call shift gave about full buckets what work. to a our of SG&A at which interest

we We to seeing not of One, with that as $XX of were got into or see traction about company have shifted we've the spring million would that incremental out we fall expected the marketing. the traction marketing. marketing across

DSW branding some And for heavy moved fall we've the for a as well. very of long marketing, of We use fall. So top funnel we're in that first be back-to-school. to into very video excited in the some launching that

moved. So has shift that

being XXrd added We that also have in week about $X there. million of that's

We have that and month, materialize sure in transition. related been to a when was to going So not to to QX. of our final Keds fall, unique million and be just with that that do, spring, catch-up in has about month $X happens to we again, That then case. weren't coming off the happening TSA that's always the

that of I to comp year total selling year, which expenses performance that about SG&A in want guidance to versus you along all line million the at are in and totals just in that the properly make gave shift $XX modeling. related spring with beginning So we between more our sure fall with together, guys of an improvement

And then which the a second the Obviously, give, last we And cover We advantage to much question have we because of to what activities. future even liquidity, repurchases. term been it in want we wanted opportunistic did is was accomplished funded than loan in with commenced and We we've what heavier think that current very there take remaining. price. did was quarter executing. some we quarter. never the to is We

but I to So we feel of in think, up we fifth, yesterday how the our that's, quoted through long-term strategy. up proof confident

Mauricio Serna

so Thanks all the much for Great. details.

Operator

Thank Please next you. Dylan ahead. [Operator from Instructions] question with William go Blair. Our Carden comes today

Dylan Carden

or you refund, just Jared, IRS with last, of about primary addition full? that how that very sticking [ph] that use you think much. to the Thank in

Jared Poff

share Yeah, on mechanically. it lion's the adjust our is facility to credit revolving of

pay will in comes be used that as soon to As down. immediately that that

assess We capacity always versus to stock as overall and price buy. do will always we liquidity current

no that debt. our one to for to And deploy would we ABL down those or point. in So there's But it this at one on aren't earmarked be funds fashion. particular committing used day commitments pay

Dylan Carden

of the balance of Okay. make And I want kind then guidance. I understand just to sure

a tailwinds of of down takes this if have be rhetoric But of here, of leg sort guidance point, at cetera. lot So the Nike, consumer et between given on? sort in you would to comparisons the detrimental some just a that

Jared Poff

Yeah.

head. So Dylan it and you the hit on

shift and are that's out built what year the tailwinds how range, hit overall we a that head. case, That's we experienced performance than And year-over-year always spring. on anticipating have we've the pretty we've you in the communicated. always material and guidance As them what some do we the we look for in been and

got We've that comps. Nike about. just on advertising got some branding talked got I in. coming We've new easier going We've

the end tailwinds. the entire At seeing the caution. of seeing So and there it consumer, sell are who day, especially consumer, discretionary though, across certainly of been retail lot we're people the to we've a lens, the

net in call I position now, consumer like current right pertains to it going our even we're it square they're feel that really feeling But discretionary And into a risk with I as fall. and guidance. it it lies -- how

Dylan Carden

I'm new on about And the talked these anything had last of happen loyalty kind brands of while. how part one, program or [indiscernible]? sort would just the of interact built how retail? much sales number of the with and of And the we back that curious a essentially haven't you your in lower

Doug Howe

brands with Dylan, obviously. mentioned broader opportunity we Doug. the progress in were DBI launch pleased we which the that recently we're a Le that as and as of but then the outside that channels this days of move forward Again, TIGRE, at distribution, Athletic. is about And We're we there's of the partner first DSW, most is in general. Keds we remarks, Topo believe that opportunity early excited to very expand on,

that. good So We feel about expectations. everything our is really performing to

the we we as well to segment sales And fact that retail the did in channel. I think our the and the as our that segment back that strength those just business own have realize brand goes of

forward. in that strategy So just the deploying we're more to going confidence be going

Jared Poff

The mentioned schedule basically with services I transition we SG&A, one our agreement, I ahead of Keds. off this Dylan, thing be that -- fully add with would a to actually will it that, little is month, and

our them really to about been strategic have at on them infrastructure So systems. positioning the to having We're for growth a model. acquisition for for late now start actually excited while, transition now this wholesale, performing in really they've year they're been their our pretty Keds, excited that on has DTC and

Dylan Carden

How pace just kind you think -- launches with of quick difficulty] in the the Got this the it. channel. And of dynamics of the it this thinking here. historically. Nike, quarter, reengage that of relationship relationship scale business sort a right? I are to Nike fourth what of about was new on I think I'm then one But [technical just right you one can another

Doug Howe

very some little earlier be about site, anticipated, about Dylan, had is optimistic amount have we and units a next significant Yeah. originally again, available we'll actually couple the have a with stores this weeks. We are we to in Nike. partnership actually And We of than a delivering be to than product anticipated. a continue earlier integrated month rolling earlier. bit we Doug. Again, the on going that products of to our our month that's out about

tailwind. that again, a definitely So is

So about feel we good that.

what as shared We be. that what very where manage top-line. really you that obviously would obviously of is be customer the with will to brand informed we regards it carefully specific portfolio and shared manage it our seeing with by all of we're haven't We was the demanding And how but we brands. historically,

Dylan Carden

Okay, that's all I got.

Operator

ladies question-and-answer like over any the back I'd and remarks. this Doug for And our you. to to Thank final conference turn Howe concludes session. gentlemen,

Doug Howe

and Well, we to today, all we back our our team their dedication the to We everyone, for backdrop. challenging very on macroeconomic half I just through for thanks you the progress tuning move next updated of look as in year to throughout as want reiterate move forward thanks quarter. keeping

again. So thanks

Operator

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

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

Designer Brands (DBI) 7 Sep 232023 Q2 Earnings call transcript