Dive Brief:
- Designer Brands is working to “pare back every line of spending possible,” including labor costs and management incentive compensation, CFO Jared Poff said on an earnings call Thursday.
- The parent company of DSW Designer Shoe Warehouse said that it has streamlined operations, and that “a number of our employees have been affected by this action,” according to CEO Roger Rawlins.
- Designer Brands did not respond to inquiries by Retail Dive on the number of employees impacted.
Dive Insight:
Designer Brands has undergone labor cuts.
The company has taken action to “promote collaboration and make our organization more efficient,” Rawlins said. “We are sensitive to the fact that a number of our employees have been affected by this action. We're working closely with them to aid in their transition, and I personally would like to thank them for all their contributions to DBI.”
Designer Brands on Thursday reported fourth quarter and fiscal year 2022 financial results. For the quarter, net sales decreased 7.5% to $760.5 million, while comparable sales decreased 5.5%. For the full year, net sales increased 3.7% to $3.3 billion, while comparable sales increased by 4.4%.
The company last year introduced a long-term plan that focuses on building its owned brands and delivering $4 billion in revenue by fiscal 2026.
“Our owned and national brand strategy continues to be our priority,” President of DSW Doug Howe said on Thursday’s earnings call. “I want to take a moment to emphasize that our goals to maintain strong partnerships with national brands while doubling owned brands are completely complementary. We will continue to aggressively grow our own brands, while finding unique ways to unlock additional opportunities with our national brand partners.”
As part of this strategy, Designer Brands recently bought Keds from Wolverine Worldwide and is working to finalize an agreement to become the exclusive licensee for the Hush Puppies brand in the U.S. and Canada. The company also acquired Topo Athletic at the end of last year to expand its owned brands portfolio.
At the start of the year, Designer Brands named Howe as its CEO, effective April 1. Rawlins will step down from the chief role and as a member of the company’s board of directors. Rawlins will continue to work with Designer Brands as a strategic advisor for one year to ensure a smooth leadership transition.
Howe, who joined Designer Brands last May, was previously the chief merchandising officer at Kohl’s.
