DBI - Earnings call transcript Q2 2024

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Operator

Good morning, and welcome to the Designer Brands Second Quarter 2023 Earnings Conference Call. [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. Please go ahead.

Justin Fischer

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

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

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

materially statements. prospects remarks to differ please the and filings public company about factors that various and in due SEC. plans made press of note Results constitute listed forward-looking Additionally, expectations, future the with release the may company's the today's the

assumes company no update The any forward-looking statements. obligation to

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

Now let me the over turn call to Doug.

Douglas Howe

Good morning, everyone.

I their team performance, the thank discussing challenging against during work this dedication hard that backdrop. want for played quarter out macroeconomic the quarter's our to and Before

throughout that to to Because overall quarter. comps of am the from I our improved pleased quarter results, first team's to posted we sequential improving improvement the in share commitment that posting addition

gross as sequentially second-highest marked the the well rate also year-over-year over Our and QX past as decade. increased margin

bottom year-over-year enough. across improvement to though, committed organization, our producing Sequential we alone top are our Within not is and lines. growth

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

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

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

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

as on the we we've I recently actions for well my CEO, progress our positioned next a and taking are moment I take the new DBI's to XXX-day the of want to mark in reflect growth. ensure and made to hit seat are phase we

synergies that industry. It business distinctive exist increasingly has in businesses, growing Combined, have do distinct clear Retail valuable to not new our legacy Brands X they give the business. and that we and me and our become us elsewhere

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

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

what made We today Designer wish thankful led him has very it Brands to immensely help for Bill the the are best. is and work

deliver unique strategic firmly company the advantages believe will Designer we Brands footwear truly industry, has that future. I unlike any the into in growth have other and

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

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

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

We of La TIGRE. are thrilled launch recent the with

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

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

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

athletic to inaugural their leisure launch footwear we with and new the reminder, are a TIGRE is As space, is cap us. year La thrilled

La more design gone be established women's that Ready the we I the and in comfort. by modern in bringing style, "Born the about anything." spirit loaded our collection. both for couldn't launch brand has a brand. to rooted Their first in work The XXXX, are York and selections with launch, the street and includes men's in City athletic TIGRE this and Timeless and footwear excited new wild. line culture this was inspired Raised national new New ever approach city. the of into strategic vintage day

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

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

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

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

collaborations in and Habits We ]. the also launched both with quarter, Recreational [ Star exciting

Habits sophisticated ] in First, is to and craze partnership sport white gray our [Star the classic lace. enthusiasts. produced court this, and our of a the to Complementary cater sneaker all take designed color launch pick Recreational on latest to court

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

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

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

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

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

to first Vince Camuto, address selection. our FlyXXX, hybrid have pleased line, meets shoe style franchise shoe we're casual men's launched

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

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

In in fact, XXX highlighted recently was News. Footwear

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

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

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

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

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

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

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

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

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

saw we will supported QX year anticipate have the we reaffirmed end Although by fact, and the through in full of the we today, to guidance, QX. XXXX into increase, sequential potential the year improvement our macro pressures continue from

we products. Jared ahead We and and laser-focused go on-trend to continue holiday moments. a be and still meeting of selling have on Septober few with on our driving detail seasons demand us, this more in into will

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

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

I initiatives strategic we the through look as forward year. of back the our half on all to updating you move

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

Jared Poff

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

adjusted pride environment, us share of in increasingly expectations. line and our continue in the second organization with challenging team's through to Doug's deliver a current feeling $X.XX, managing to I of ability EPS quarter this our allowing

as saw We year over we margin. and in our headwinds. reaffirming our continued sequential result, full both a gross and current first And a despite macro industry are improvement quarter sales guidance the

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

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

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

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

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

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

achieve Year-over-year level our was to freight, and into Columbus the Jersey and of by centers costs, variable the distribution consolidating New driven ECLC, impact expense specifically fixed significantly lower expense. leverage. our favorable center and The centers, consolidation a logistics shipping profitability of fulfillment fulfillment of improvement allowed also us more fulfillment including

promotions, This offset of occupancy continued our rebuilding the by store increased benefit deleverage cost. business of fixed and was clearance partially our

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

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

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

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

and in and ended $XXX.X income was We quarter or $XX.X in XX% diluted net last Finally, the our quarter $X.XX of roughly year, or compared adjusted $XX.X million or year versus second the second $XXX.X $X.XX from million, EPS $XXX million last million down sequentially down million first to with $X.XX $XX.X million inventories XXXX. quarter.

second we the to to On inventory for and inventory XX% X% quarter compared of ended square when down the down down Keds, the XXXX Wholesale been Topo down have versus of retail ended inventory footage XXXX. of acquisition QX compared a and basis, adjusted last XX% year. second XX% and, quarter would

good Because opportunistic fall, remained in our on buys. we feel approach necessary inventory the ensuring we take and about nimble have into we chase our have our positioning assortment, heading action flexibility to to

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

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

As have to open purchase strategy. our a shares long-term in result, continued the market. in view of as vote we a confidence this We

added $XX.X Thus far trading the repurchases. total continued XXXX, have date, shareholders we to returned the third and the In that repurchases. X, based quarters $XX.X September X through million through in of thanks dividends market quarter, first by share to fiscal million open on we to

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Operator

Today's Instructions] with Carbone [Operator Deutsche comes question first from Bank. Gaby

Gabriella Carbone

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

inventory about thinking you're there. how curious Just

Douglas Howe

X This Gaby. is Doug. There's Thanks, performance today. Yes. really category

We the that see Obviously, with the casualization momentum just and in continue to trend managing inventory. continues to casual of category. the gain buoyancy [indiscernible]

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

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

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

so of ahead results by nice that. optimistic some season initial driven are about Western, still is goods, cautiously particularly But of us. We the seeing fashion again, majority we're the on

Gabriella Carbone

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

kind promotional promotional into more on been what's the So promotion there are then obviously, it's in? seeing moving there. out you're guidance just front. baked categories your And ahead, Curious, of activity certain

across you're inventory marketplace. levels then mentioned And that still seeing high you like the

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

Douglas Howe

job Yes, the question. really in by inventory is didn't obviously Good to promotional. overly that Yes. really the fact a our we've we of so good done that our largely get fueled margin is need and managing strong shape, feel

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

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

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

close So to stay it. we'll definitely

Operator

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

Mauricio Serna Vega

Great.

could quarter-to-date any performance. you some see if Have provide on what you ask QX? versus to seen wanted you I [indiscernible] First, maybe color on

between QX if like sales do you second we think in and difference any see about big the -- And we growth half, should QX?

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

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

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

Douglas Howe

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

had you questions. X think I

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

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

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

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

Jared Poff

case, we reaffirmed But is it have the that that's yet, trend net current certainly, There we our get pertains that why called And but turn it's we planned and reaffirmed, make is we see conditions we that to not material clear, experienced that easier there. believe, to the is had risk anticipated, date, as it the that thing in that that is guidance. that in a to reiterated Doug say, what why and assuming a is would echo for want -- there our comps, to is In has we've one that, on a against to macroeconomic are belief, times. guidance now, said trajectory sure current guidance, this have position is especially I degree we which current few but pretty we we've always That's turning seen but as we've year-to-date. why to seeing haven't change and and we been the but I out.

on my the where is questions or SG&A X you the very that glad in probably now asked fall. right spoke last for actually your most modeling the consensus mind, because that's rate, I'm about To disconnected

that of to have for million XXrd of week. business. the said initiatives basis. what Keds, take of on out have initial that Topo you cost-savings to I'm year. year-over-year $XX the $XX year reorg we and a want reflect consensus that back had company we the And because that not we guidance million now, to the also done about add to our stripped I we and some for And about SG&A into a legacy talked about seeing But was moment our overall total SG&A right

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

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

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

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

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

has shift that So moved.

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

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

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

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

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

Mauricio Serna Vega

Great.

Operator

[Operator Blair. William Instructions] from comes today Our next with Dylan question Carden

Dylan Carden

sticking are about thought, that or the one to refund, thinking well? last how it Jared, that you IRS primary just that use, addition with as the is in

Jared Poff

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

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

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

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

Dylan Carden

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

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

Jared Poff

head. and on the it Yes. you Dylan, Yes. hit Certainly,

built for what we we case, we've and material range, and the out year-over-year in spring. overall always that's that communicated. That's year how shift pretty look guidance anticipating we a what the been the are than experienced always in we've As performance

have just head. got Nike new We've We've and got hit And going some we the on that about. do talked in. easier you comps. I branding them We've tailwinds, on got advertising coming some

sell who a with as caution. right fall. feel But tailwinds. we're I position it of are day, going current in -- into it the entire and call to discretionary discretionary been And we're our net the it how certainly squarely guidance. like pertains I to there seeing So though, feeling end consumer, it that lot they're lies now, the saying it really even a retail risk consumer and especially consumer, of people we've across the At land, the

Dylan Carden

last a can curious anything essentially there the Is sort the new the built on much talked these of have loyalty haven't brands your one, of kind royalty talk sales how how that maybe, [indiscernible]. And sort number in or program you you there interact back and happens about of the with I'm we of Doug? just about while. of

Douglas Howe

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

So everything the Brands as feel about performing sales have didn't I that fact in And is just and we that to really as the We that our our Retail business think to expectations. realize our back own those that. of goes strength the good well the segment segment channel. we

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

Jared Poff

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

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

Dylan Carden

can launches How should right? it And Nike, I'm that fourth you this in how coming channel. is Got -- the the thinking what think Nike pace this I of quickly one of just a it. dynamics about the think of right you quarter, of then of kind kind just reengaging historically relationship -- the maybe here. scale, business new relationship this but another sort talk was I in are with about

Douglas Howe

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

tailwind. a definitely again, that is So

good we feel about So that.

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

Operator

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

Douglas Howe

tuning backdrop. we thanks Well, all for in as for and to move reiterate, just team our thanks, want dedication everyone, today, challenging throughout their macroeconomic very I to a

on you to our year look back half updated quarter. keeping move progress through as We the forward the next of we

thanks So again.

Operator

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

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

Designer Brands (DBI) 7 Sep 232024 Q2 Earnings call transcript