Designer Brands Inc. (NYSE:DBI) Q3 2023 Earnings Call Transcript

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Doug Howe: Sure. Yes. Thanks for your question. We were very promotional because we wanted to make sure that we didn’t lose share, specifically as we went into that Cyber Week. So we are very aggressive on promotions. We did see a nice performance there. So again, kind of mission accomplished with regard to not losing share. Having said that, there definitely has been a lull coming out of Cyber Monday and then even the continuation of those promos through Tuesday. So there’s four weekends between Thanksgiving and Christmas. There’s always historically been a bit of a lull between Black Friday and the holidays. And we’re definitely seeing that. But what we’re seeing obviously for the quarter still is obviously incorporated into our guidance. But I think customers are waiting until the very last minute. They’re being very selective, as I said. We were pleased with what we saw coming out of Black Friday, but again, we were very promotional and leaning into that.

Jay Sole: Okay. And then if I can ask one more. If you can just elaborate a little bit on the brand portfolio. Within the brand portfolio, which brands do you see the most strength? Maybe which brands, is there room for improvement? If you could just touch on the brands within the portfolio, that would be helpful? Thank you.

Doug Howe: Yes. And as Jared said in his comments, I mean, that brand portfolio largely performed within our expectations. We were up against a pretty strong comp last year as it relates to just some timing opportunities. But we’re very encouraged with what we’re seeing certainly from the Keds business. We’re very encouraged with what we’re seeing from Topo. Two acquisitions, obviously, that were part of our strategy to distort towards the casual and athletic space. So we’re very encouraged by that. Again, small businesses overall, but we’re definitely encouraged by what we saw and the plans that we have going forward for those brands in particular. And then Le TIGRE, we launched that at DSW as part of our opportunity, obviously, to expand encouraged by initial results there as well. So again, early days, going through, obviously, the integration, but we’re optimistic about those.

Jay Sole: Got it. Okay. Thank you so much.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Doug Howe for closing remarks.

Doug Howe: In closing, I would be remiss not to mention the terrible tragedies that have unfolded in Israel and Palestine over the past several months. Our hearts and prayers are with those suffering and we recognize this is a very difficult and uncertain time for many of our associates, our partners and our customers. I’m proud of how our team cares for, supports and lifts those around us. We recognize the values that unite us have powerful positive impacts because that Designer Brands, we all belong. Thank you.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.

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