US footwear and accessories retailer DSW Group has outlined its three-year strategic priorities and financial goals and unveiled a new corporate name – Designer Brands Inc.
The company, which designs, produces, and retails branded footwear and accessories, said its new priorities will help it deliver 2021 adjusted earnings per share in the range of US$2.65 to $2.75.
Go deeper with GlobalData
The new name, it added, “supports its vision for the future and reflects its expertise in building brands and delivering differentiated experiences, powered by one of North America’s largest footwear enterprises.”
In conjunction with the change, Designer Brands will change the company’s ticker symbol from ‘DSW’ to ‘DBI’, effective at the start of trading on 2 April, which has been approved by the New York Stock Exchange. As of that date, the ‘DSW’ trading symbol will no longer be active.
In November of last year, Designer Brands – then DSW – finalised its purchase of the Camuto Group in a US$375m deal together with Authentic Brands Group (ABG), owner of brands including Juicy Couture, Aeropostale and Nautica.
See Also:
Under the terms of the deal, ABG took the majority stake of 60% and DSW Inc the balance of 40%.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataDesigner Brands’ strategic priorities over the next three years include:
Controlling Designer Brands’ destiny through differentiated products and experiences
- Build exclusive brands and products for DSW and The Shoe Company through Camuto Group’s design and sourcing capabilities;
- Expand services including DSW’s partnership with the W Nail Bar, as well as custom insoles, shoe repair and shoe concierge, while exploring new opportunities;
- Enhance and build upon DSW’s award-winning VIP loyalty program with new features; and
- Leverage DSW’s loyalty expertise and infrastructure to launch a new loyalty programme for The Shoe Company.
Grow market share through positive comparable store sales, new direct-to-consumer opportunities and continued partnership with other retailers
- Leverage Designer Brands’ business model to continue participating in 5% of all footwear transactions in North America;
- Deliver consistent low single-digit comparable retail sales collectively across the enterprise;
- Grow the kids business at DSW;
- Leverage DSW’s digital expertise and infrastructure to meaningfully increase digital sales penetration for The Shoe Company and Camuto Group’s direct-to-consumer business; and
- Strengthen relationships with and enhance performance of Camuto Group’s retail partners.
Leveraging the scale of the Designer Brands enterprise
- Capitalise on increased buying power, leverage and production cost insights with vendors;
- Optimise inventory management, including pursuing cross-border and inter-segment opportunities; and
- Drive operational excellence and efficiencies through shared best practices
“The long-term plan we announced today represents a new chapter for our company as we take greater control of our destiny in today’s changing retail landscape,” says Designer Brands CEO Roger Rawlins. “Over the next three years and beyond, we will leverage our integrated enterprise to continue delivering differentiated products and experiences while significantly expanding our gross margin by bringing the production of our private brands in-house through our industry-leading Camuto Group and increasing the sales penetration of all of our produced brands across our retail channels.
“We look forward to continuing to drive innovation and increase market share by delivering positive comp sales while also growing complementary categories and markets.”
For fiscal 2019, the company expects to achieve low double-digit revenue growth as compared to fiscal 2018 revenue of $3.2bn billion, and to increase comparable store sales in the low single-digit range. Adjusted earnings per share, meanwhile, is expected to range between $1.80 to $1.90.
The company, this week, reported a widening of its net loss in the fourth quarter to $45.73m, compared to net income of $11.95m in the prior year period. Net sales, meanwhile, rose to $838.58m from $723.36m last year.
