# EDGAR Filing Document

**Accession Number:** 0001319947
**File Stem:** 0001319947-23-000011
**Filing Date:** 2023-3
**Character Count:** 39007
**Document Hash:** 1633367f9e17abfdf580ddccb774d7d5
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001319947-23-000011.hdr.sgml**: 20230316

**ACCESSION NUMBER**: 0001319947-23-000011

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 16

**CONFORMED PERIOD OF REPORT**: 20230316

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230316

**DATE AS OF CHANGE**: 20230316

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Designer Brands Inc.
- **CENTRAL INDEX KEY:** 0001319947
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-SHOE STORES [5661]
- **IRS NUMBER:** 310746639
- **STATE OF INCORPORATION:** OH
- **FISCAL YEAR END:** 0129

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-32545
- **FILM NUMBER:** 23737099

**BUSINESS ADDRESS:**
- **STREET 1:** 810 DSW DRIVE
- **CITY:** COLUMBUS
- **STATE:** OH
- **ZIP:** 43219
- **BUSINESS PHONE:** (614) 872-1473

**MAIL ADDRESS:**
- **STREET 1:** 810 DSW DRIVE
- **CITY:** COLUMBUS
- **STATE:** OH
- **ZIP:** 43219

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** DSW Inc.
- **DATE OF NAME CHANGE:** 20050307

?xml version="1.0" ? dbi-20230316

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): March 16, 2023**

![dbi-20230316_g1.jpg](dbi-20230316_g1.jpg)

**Designer Brands Inc.** 

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Ohio** | **1-32545** | **31-0746639** |
| (State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |

---

---

| | |
|:---|:---|
| **810 DSW Drive, Columbus, Ohio** | **43219** |
| (Address of Principal Executive Offices) | (Zip Code) |

---

Registrant's telephone number, including area code: **(614) 237-7100**

---

| |
|:---|
| **N/A** |
| (Former name or former address if changed since last report.) |

---

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| **Class A Common Shares, without par value** | **DBI** | **New York Stock Exchange** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange

Act.&nbsp;&nbsp;&nbsp;&nbsp;☐

------

**Item 2.02 Results of Operations and Financial Condition.**

On March 16, 2023, Designer Brands Inc. (the "Company") issued a press release announcing its consolidated financial results for the quarter and fiscal year ended January 28, 2023. A copy of the press release is attached as Exhibit 99.1 hereto and incorporated by reference herein. The Company also posted an infographic dated March 16, 2023 on the "Investors" section of its investor relations website (investors.designerbrands.com/investor-relations). Copies of the press release and infographic are furnished herewith as Exhibit 99.1 and Exhibit 99.2, respectively. Information on the Company's website is not, and will not be deemed to be, a part of this Current Report on Form 8-K or incorporated into any other filings the Company may make with the Securities and Exchange Commission.

Pursuant to General Instruction B.2 of Current Report on Form 8-K, the information in this Item 2.02, including Exhibit 99.1 and Exhibit 99.2, is being furnished and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Furthermore, the information in this Item 2.02 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended.

**Item 8.01 Other Events.**

On March 15, 2023, the Board of Directors (the "Board") of the Company approved a quarterly cash dividend of $0.05 per share for the Company's Class A and Class B common shares. The dividend will be paid on April 14, 2023 to shareholders of record as of the close of business on March 31, 2023.

Future declarations of dividends are subject to Board approval and may be adjusted based on the Company's results of operations, financial position, or market conditions. As it is customary, details regarding the record and payment dates for any future quarterly dividends will be announced at the time such dividends are declared by the Board.

**Item 9.01 Financial Statements and Exhibits.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Exhibits.

---

| | |
|:---|:---|
| **Exhibit Number** | **Description** |
| <u>[99.1](q420228-kex991pressrelease.htm)</u> | <u>[Press Release of Designer Brands Inc., dated March 16, 2023.](q420228-kex991pressrelease.htm)</u> |
| <u>[99.2](dbi4q22infographic.htm)</u> | <u>[Infographic dated March 16, 2023.](dbi4q22infographic.htm)</u>  |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

------

**Signature** 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| | | By: | **Designer Brands Inc.**<br>/s/ Michelle C. Krall |
| | | | Michelle C. Krall |
| | | | Senior Vice President, General Counsel and Secretary |
| Date: | March 16, 2023 |  |  |

---

## Exhibit 99.1

**Exhibit 99.1**

**Designer Brands Inc. Reports Fourth Quarter and Fiscal Year 2022 Financial Results**

*Owned Brands Net Sales up 32.1% for 2022 Compared to Last Year*

*2022 Gross Margin Up 400 Basis Points over 2019 as Brand Building Strategy Takes Hold*

COLUMBUS, Ohio, March 16, 2023 - Designer Brands Inc. (NYSE: DBI) (the "Company" and "Designer Brands"), one of the world's largest designers, producers, and retailers of footwear and accessories, announced financial results for the three months and year ended January 28, 2023.

Roger Rawlins, Chief Executive Officer, stated, "Our 2022 results clearly showcase the power and success of our brand building strategy with our Owned Brands growing over 32% to last year while delivering gross margins 400 basis points higher than those we saw in 2019. These results showcase the successful execution of our strategy. I am incredibly proud of our team and their tireless efforts, and I am excited about what lies ahead for Designer Brands."

Doug Howe, President of DSW and incoming Chief Executive Officer, added, "Looking ahead, we are confident in the strength of our business as we work to integrate new and recognizable names into the Designer Brands family, including Keds, Le Tigre, Topo Athletic, and Hush Puppies. Although we are navigating through a volatile environment, we are well-positioned to offer great value and a diverse assortment of product to our customers as we head into 2023. We will continue to be prudent in managing our expenses and inventory and drive growth in our portfolio of increasingly diversified Owned Brands."

**<u>Fourth Quarter Operating Results</u>** *(Unless otherwise stated, all comparisons are to the fourth quarter of 2021)*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Net sales decreased 7.5% to $760.5 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Comparable sales decreased by 5.5%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** Gross profit decreased to $222.0 million versus $254.2 million last year, and gross margin was 29.2% as compared to 30.9% last year.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** Reported net income attributable to Designer Brands Inc. was $45.1 million, or diluted earnings per share ("EPS") of $0.66, including net benefits of $0.59 per diluted share from adjusted items, primarily related to the change in valuation allowance on deferred tax assets, partially offset by restructuring and termination costs and CEO transition costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted net income was $4.7 million, or adjusted diluted EPS of $0.07.

**<u>Full Year Operating Results</u>** *(unless otherwise stated, all comparisons are to full year 2021)*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net sales increased 3.7% to $3.3 billion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Comparable sales increased by 4.4%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** Gross profit was flat to last year at $1.1 billion, and gross margin was 32.6% as compared to 33.4% last year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** Reported net income attributable to Designer Brands Inc. was $162.7 million, or diluted EPS of $2.26, including net benefits of $0.41 per diluted share from adjusted items, primarily related to the change in valuation allowance on deferred tax assets, partially offset by the loss on extinguishment of debt and write-off of debt issuance costs, restructuring and termination costs, CEO transition costs, and impairment charges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted net income was $133.7 million, or adjusted diluted EPS of $1.85.

**<u>Liquidity Highlights</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash and cash equivalents totaled $58.8 million at the end of 2022, compared to $72.7 million at the end of 2021, with $243.9 million available for borrowings under our senior secured asset-based revolving credit facility ("ABL Revolver"). Debt totaled $281.0 million at the end of 2022 compared to $225.5 million at the end of 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company ended the year with inventories of $605.7 million compared to $586.4 million at the end of 2021.

------

**<u>Return to Shareholders</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For the year ended January 28, 2023, we repurchased 10.7 million Class A common shares (14.6% of Class A and Class B common shares at the beginning of the fiscal year) at an aggregate cost of $147.5 million, with $187.4 million of Class A common shares that remain authorized under the program as of January 28, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** A dividend of $0.05 per share of Class A and Class B common shares will be paid on April 14, 2023 to shareholders of record at the close of business on March 31, 2023.

**<u>Store Openings and Closings</u>**

During the fourth quarter of 2022, we closed three stores in the U.S. with no changes to the store count in Canada, resulting in a total of 501 U.S. stores and 138 Canadian stores at the end of 2022.

**<u>Outlook for 2023</u>**

The Company has announced the following guidance for the full year 2023:

---

| | |
|:---|:---|
| **Metric** | **Fiscal 2023 Guidance** |
| Net Sales: |  |
| &nbsp;&nbsp;Designer Brands net sales growth, excluding Keds | Down mid-single digits |
| &nbsp;&nbsp;Incremental net sales from Keds acquisition | $75.0 million to $85.0 million |
| Diluted EPS: |  |
| &nbsp;&nbsp;Designer Brands, excluding Keds | $1.65 - $1.75 |
| &nbsp;&nbsp;Contribution from Keds acquisition | ~$0.00 |

---

**<u>Webcast and Conference Call</u>**

The Company is hosting a conference call today at 8:30 am Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-888-317-6003, or the international dial in, 1-412-317-6061, and reference conference ID number 5071723 approximately ten minutes prior to the start of the conference call. The conference call will also be broadcast live over the internet and can be accessed through the following link:

https://app.webinar.net/bkDVPKByrX8

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For those unable to listen to the live webcast, an archived version will be available at the same location until March 23, 2023. A replay of the teleconference will be available by dialing the following numbers:

U.S.: 1-877-344-7529

Canada: 1-855-669-9658

International: 1-412-317-0088

Passcode: 2475851

**<u>About Designer Brands</u>**

Designer Brands is one of the world's largest designers, producers and retailers of the most recognizable footwear brands and accessories, transforming and defining the footwear industry by inspiring self-expression across every facet of its enterprise. Through its portfolio of world-class owned brands, led by the industry-setting Vince Camuto brand, Designer Brands delivers on-trend footwear and accessories through its robust direct-to-consumer omni-channel infrastructure, featuring a billion-dollar digital commerce business and nearly 650 stores across the U.S. and Canada. Its retailing operations under the DSW Designer Shoe Warehouse and The Shoe Company banners deliver current, in-line footwear and accessories from most of the largest national brands in the industry and hold leading market share positions in key product categories across Women's, Men's and Kid's in the U.S. and Canada. Designer Brands also distributes its owned brands through select wholesale relationships while leveraging its design and sourcing expertise to build private label product for national retailers. Designer Brands is also committed to being a difference maker in the world, taking steps forward to advance diversity, equity, and inclusion in the footwear industry and supporting our global community and the health of our planet through donating more than six million pairs of shoes to the global non-profit Soles4Souls. More information can be found at www.designerbrands.com.

------

**<u>Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995</u>**

Certain statements in this press release may constitute forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by the use of forward-looking words such as "outlook," "could," "believes," "expects," "potential," "continues," "may," "will," "should," "would," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates," or the negative version of those words or other comparable words. These statements are based on the Company's current views and expectations and involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. These factors include, but are not limited to: uncertain general economic conditions, including inflationary pressures and rising interest rates, and the related impacts to consumer discretionary spending, as well as supply chain disruptions and pressures; risks and uncertainties related to the ongoing coronavirus ("COVID-19") pandemic, any future COVID-19 resurgence, and any other adverse public health developments; our ability to anticipate and respond to fashion trends, consumer preferences and changing customer expectations; our ability to maintain strong relationships with our vendors, manufacturers, licensors, and retailer customers; risks related to losses or disruptions associated with our distribution systems, including our distribution centers and stores, whether as a result of the COVID-19 pandemic, reliance on third-party providers, or otherwise; our ability to manage our Chief Executive Officer transition, retain our existing management team, and continue to attract qualified new personnel; risks related to cyber security threats and privacy or data security breaches or the potential loss or disruption of our information technology ("IT") systems; risks related to the implementation of an enterprise resource planning system ("ERP") software solution and other IT systems; our reliance on our loyalty programs and marketing to drive traffic, sales, and customer loyalty; our ability to protect our reputation and to maintain the brands we license; our competitiveness with respect to style, price, brand availability, and customer service; risks related to our international operations, including international trade, our reliance on foreign sources for merchandise, exposure to political, economic, operational, compliance and other risks, and fluctuations in foreign currency exchange rates; our ability to comply with privacy laws and regulations, as well as other legal obligations; domestic and global political and social conditions and the potential impact of geopolitical turmoil or conflict; risks associated with climate change and other corporate responsibility issues and uncertainties related to future legislation, regulatory reform, policy changes, or interpretive

------

guidance on existing legislation. Risks and other factors that could cause our actual results to differ materially from our forward-looking statements are described in the Company's latest Annual Report on Form 10-K or other reports filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the time when made. The Company undertakes no obligation to update or revise the forward-looking statements included in this press release to reflect any future events or circumstances.

------

**DESIGNER BRANDS INC.** 

**SEGMENT RESULTS**

(unaudited)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Net Sales** | **Net Sales** | **Net Sales** | **Net Sales** | **Net Sales** | **Net Sales** | **Net Sales** |
| | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | | |
| *(dollars in thousands)* | **January 28, 2023** | **January 28, 2023** | January 29, 2022 | January 29, 2022 | Change | Change |
|  | **Amount** | **% of Total Segment Net Sales** | Amount | % of Total Segment Net Sales | Amount | % |
| Segment net sales: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Retail | $**648314** | **84.1%** | $716347 | 84.0% | $(68033) | (9.5)% |
| &nbsp;&nbsp;&nbsp;Canada Retail | **66353** | **8.6%** | 61828 | 7.3% | 4525 | 7.3% |
| &nbsp;&nbsp;Brand Portfolio | **56450** | **7.3%** | 74149 | 8.7% | (17699) | (23.9)% |
| Total segment net sales | **771117** | **100.0%** | 852324 | 100.0% | (81207) | (9.5)% |
| Elimination of intersegment net sales | **(10571)** |  | (29698) |  | 19127 | (64.4)% |
| Consolidated net sales | $**760546** |  | $822626 |  | $(62080) | (7.5)% |

---

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Twelve months ended** | **Twelve months ended** | **Twelve months ended** | **Twelve months ended** | | |
| *(dollars in thousands)* | **January 28, 2023** | **January 28, 2023** | January 29, 2022 | January 29, 2022 | Change | Change |
|  | **Amount** | **% of Total Segment Net Sales** | Amount | % of Total Segment Net Sales | Amount | % |
| Segment net sales: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. Retail | $**2791513** | **82.0%** | $2769706 | 84.2% | $21807 | 0.8% |
| &nbsp;&nbsp;&nbsp;Canada Retail | **283241** | **8.3%** | 234809 | 7.1% | 48432 | 20.6% |
| &nbsp;&nbsp;Brand Portfolio | **327715** | **9.7%** | 286024 | 8.7% | 41691 | 14.6% |
| Total segment net sales | **3402469** | **100.0%** | 3290539 | 100.0% | 111930 | 3.4% |
| Elimination of intersegment net sales | **(87041)** |  | (93956) |  | 6915 | (7.4)% |
| Consolidated net sales | $**3315428** |  | $3196583 |  | $118845 | 3.7% |

---

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Net Sales by Brand Category** | **Net Sales by Brand Category** | **Net Sales by Brand Category** | **Net Sales by Brand Category** | **Net Sales by Brand Category** | **Net Sales by Brand Category** |
| *(in thousands)* | U.S. Retail | Canada Retail | Brand Portfolio | Eliminations | Consolidated |
| **Three months ended January 28, 2023** |  |  |  |  |  |
| Owned Brands:<sup>(1)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;Direct-to-consumer | $**129398** | $**—** | $**13710** | $**—** | $**143108** |
| &nbsp;&nbsp;External customer wholesale and commission income | **—** | **—** | **32169** | **—** | **32169** |
| &nbsp;&nbsp;Intersegment wholesale and commission income | **—** | **—** | **10571** | **(10571)** | **—** |
| Total Owned Brands | **129398** | **—** | **56450** | **(10571)** | **175277** |
| National brands | **518916** | **—** | **—** | **—** | **518916** |
| Canada Retail<sup>(2)</sup> | **—** | **66353** | **—** | **—** | **66353** |
| Total net sales | $**648314** | $**66353** | $**56450** | $**(10571)** | $**760546** |
| Three months ended January 29, 2022 |  |  |  |  |  |
| Owned Brands:<sup>(1)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;Direct-to-consumer | $121278 | $— | $9260 | $— | $130538 |
| &nbsp;&nbsp;External customer wholesale and commission income |  |  | 35191 |  | 35191 |
| &nbsp;&nbsp;Intersegment wholesale and commission income |  |  | 29698 | (29698) |  |
| Total Owned Brands | 121278 |  | 74149 | (29698) | 165729 |
| National brands | 595069 |  |  |  | 595069 |
| Canada Retail<sup>(2)</sup> |  | 61828 |  |  | 61828 |
| Total net sales | $716347 | $61828 | $74149 | $(29698) | $822626 |
| **Twelve months ended January 28, 2023** |  |  |  |  |  |
| Owned Brands:<sup>(1)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;Direct-to-consumer | $**569741** | $**—** | $**37840** | $**—** | $**607581** |
| &nbsp;&nbsp;External customer wholesale and commission income | **—** | **—** | **202834** | **—** | **202834** |
| &nbsp;&nbsp;Intersegment wholesale and commission income | **—** | **—** | **87041** | **(87041)** | **—** |
| Total Owned Brands | **569741** | **—** | **327715** | **(87041)** | **810415** |
| National brands | **2221772** | **—** | **—** | **—** | **2221772** |
| Canada Retail<sup>(2)</sup> | **—** | **283241** | **—** | **—** | **283241** |
| Total net sales | $**2791513** | $**283241** | $**327715** | $**(87041)** | $**3315428** |
| Twelve months ended January 29, 2022 |  |  |  |  |  |
| Owned Brands:<sup>(1)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;Direct-to-consumer | $421398 | $— | $27876 | $— | $449274 |
| &nbsp;&nbsp;External customer wholesale and commission income |  |  | 164192 |  | 164192 |
| &nbsp;&nbsp;Intersegment wholesale and commission income |  |  | 93956 | (93956) |  |
| Total Owned Brands | 421398 |  | 286024 | (93956) | 613466 |
| National brands | 2348308 |  |  |  | 2348308 |
| Canada Retail<sup>(2)</sup> |  | 234809 |  |  | 234809 |
| Total net sales | $2769706 | $234809 | $286024 | $(93956) | $3196583 |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;"Owned Brands" refers to those brands we have rights to sell through ownership or license arrangements.

(2)&nbsp;&nbsp;&nbsp;&nbsp;We currently do not report the Canada Retail segment net sales by brand categories.

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Comparable Sales** | **Comparable Sales** | **Comparable Sales** | **Comparable Sales** | **Comparable Sales** |
| | **Three months ended** | **Three months ended** | **Twelve months ended** | **Twelve months ended** |
|  | **January 28, 2023** | January 29, 2022 | **January 28, 2023** | January 29, 2022 |
| Change in comparable sales: |  |  |  |  |
| &nbsp;&nbsp;U.S. Retail segment | **(8.1)%** | 36.3% | **2.0%** | 55.0% |
| &nbsp;&nbsp;Canada Retail segment | **15.9%** | 42.3% | **28.8%** | 20.1% |
| &nbsp;&nbsp;Brand Portfolio segment - direct-to-consumer channel | **44.4%** | 50.9% | **34.5%** | 30.9% |
| &nbsp;&nbsp;Total | **(5.5)%** | 36.9% | **4.4%** | 51.6% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Store Count** | **Store Count** | **Store Count** | **Store Count** | **Store Count** |
| *(square footage in thousands)* | **January 28, 2023** | **January 28, 2023** | January 29, 2022 | January 29, 2022 |
|  | **Number of Stores** | **Square Footage** | Number of Stores | Square Footage |
| U.S. Retail segment - DSW stores | **501** | **10092** | 508 | 10308 |
| Canada Retail segment: |  |  |  |  |
| &nbsp;&nbsp;The Shoe Company stores | **113** | **596** | 115 | 607 |
| &nbsp;&nbsp;DSW stores | **25** | **496** | 25 | 496 |
|  | **138** | **1092** | 140 | 1103 |
| Total number of stores | **639** | **11184** | 648 | 11411 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Gross Profit** | **Gross Profit** | **Gross Profit** | **Gross Profit** | **Gross Profit** | **Gross Profit** | **Gross Profit** | **Gross Profit** |
| | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | | | |
| *(dollars in thousands)* | **January 28, 2023** | **January 28, 2023** | January 29, 2022 | January 29, 2022 | Change | Change | Change |
|  | **Amount** | **% of Segment Net Sales** | Amount | % of Segment Net Sales | Amount | % | Basis Points |
| Segment gross profit: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;U.S. Retail | $**188315** | **29.0%** | $225490 | 31.5% | $(37175) | (16.5)% | (250) |
| &nbsp;&nbsp;Canada Retail | **17976** | **27.1%** | 18537 | 30.0% | (561) | (3.0)% | (290) |
| &nbsp;&nbsp;Brand Portfolio | **12031** | **21.3%** | 13986 | 18.9% | (1955) | (14.0)% | 240 |
| Total segment gross profit | **218322** | **28.3%** | 258013 | 30.3% | (39691) | (15.4)% | (200) |
| Net recognition (elimination) of intersegment gross profit | **3669** |  | (3785) |  | 7454 |  |  |
| Consolidated gross profit | $**221991** | **29.2%** | $254228 | 30.9% | $(32237) | (12.7)% | (170) |

---

------

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Twelve months ended** | **Twelve months ended** | **Twelve months ended** | **Twelve months ended** | | | |
| *(dollars in thousands)* | **January 28, 2023** | **January 28, 2023** | January 29, 2022 | January 29, 2022 | Change | Change | Change |
|  | **Amount** | **% of Segment Net Sales** | Amount | % of Segment Net Sales | Amount | % | Basis Points |
| Segment gross profit: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;U.S. Retail | $**904583** | **32.4%** | $933555 | 33.7% | $(28972) | (3.1)% | (130) |
| &nbsp;&nbsp;Canada Retail | **99121** | **35.0%** | 76728 | 32.7% | 22393 | 29.2% | 230 |
| &nbsp;&nbsp;Brand Portfolio | **72006** | **22.0%** | 66774 | 23.3% | 5232 | 7.8% | (130) |
| Total segment gross profit | **1075710** | **31.6%** | 1077057 | 32.7% | (1347) | (0.1)% | (110) |
| Net recognition (elimination) of intersegment gross profit | **3515** |  | (8420) |  | 11935 |  |  |
| Consolidated gross profit | $**1079225** | **32.6%** | $1068637 | 33.4% | $10588 | 1.0% | (80) |

---

---

| | | |
|:---|:---|:---|
| **Intersegment Eliminations** | **Intersegment Eliminations** | **Intersegment Eliminations** |
| | **Three months ended** | **Three months ended** |
| *(in thousands)* | **January 28, 2023** | January 29, 2022 |
| Recognition (elimination) of intersegment activity: |  |  |
| &nbsp;&nbsp;Net sales recognized by Brand Portfolio segment | $**(10571)** | $(29698) |
| &nbsp;&nbsp;Cost of sales: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of sales recognized by Brand Portfolio segment | **6085** | 18447 |
| &nbsp;&nbsp;&nbsp;&nbsp;Recognition of intersegment gross profit for inventory previously purchased that was subsequently sold to external customers during the current period | **8155** | 7466 |
|  | $**3669** | $(3785) |

---

---

| | | |
|:---|:---|:---|
| | **Twelve months ended** | **Twelve months ended** |
| *(in thousands)* | **January 28, 2023** | January 29, 2022 |
| Recognition (elimination) of intersegment activity: |  |  |
| &nbsp;&nbsp;Net sales recognized by Brand Portfolio segment | $**(87041)** | $(93956) |
| &nbsp;&nbsp;Cost of sales: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of sales recognized by Brand Portfolio segment | **58234** | 62039 |
| &nbsp;&nbsp;&nbsp;&nbsp;Recognition of intersegment gross profit for inventory previously purchased that was subsequently sold to external customers during the current period | **32322** | 23497 |
|  | $**3515** | $(8420) |

---

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**DESIGNER BRANDS INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

(unaudited and in thousands, except per share amounts)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Twelve months ended** | **Twelve months ended** |
| | **January 28, 2023** | January 29, 2022 | **January 28, 2023** | January 29, 2022 |
| Net sales | $**760546** | $822626 | $**3315428** | $3196583 |
| Cost of sales | **(538555)** | (568398) | **(2236203)** | (2127946) |
| Gross profit | **221991** | 254228 | **1079225** | 1068637 |
| Operating expenses | **(222034)** | (233574) | **(896382)** | (870682) |
| Income from equity investments | **2194** | 2388 | **8864** | 8986 |
| Impairment charges | **(80)** | (546) | **(4317)** | (1720) |
| Operating profit | **2071** | 22496 | **187390** | 205221 |
| Interest expense, net | **(4344)** | (7537) | **(14874)** | (32129) |
| Loss on extinguishment of debt and write-off of debt issuance costs | **—** |  | **(12862)** |  |
| Non-operating expenses, net | **(21)** | (801) | **(130)** | (67) |
| Income (loss) before income taxes | **(2294)** | 14158 | **159524** | 173025 |
| Income tax benefit (provision) | **47394** | 253 | **3142** | (18544) |
| Net income | **45100** | 14411 | **162666** | 154481 |
| Net loss attributable to redeemable noncontrolling interest | **10** |  | **10** |  |
| Net income attributable to Designer Brands Inc. | $**45110** | $14411 | $**162676** | $154481 |
| Diluted earnings per share attributable to Designer Brands Inc. | $**0.66** | $0.19 | $**2.26** | $2.00 |
| Weighted average diluted shares | **67922** | 77549 | **72101** | 77268 |

---

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**DESIGNER BRANDS INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

(unaudited and in thousands)

---

| | | |
|:---|:---|:---|
| | **January 28, 2023** | January 29, 2022 |
| ASSETS |  |  |
| &nbsp;&nbsp;Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $**58766** | $72691 |
| &nbsp;&nbsp;&nbsp;&nbsp;Receivables, net | **77763** | 199826 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | **605652** | 586429 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | **47750** | 55270 |
| &nbsp;&nbsp;Total current assets | **789931** | 914216 |
| &nbsp;&nbsp;Property and equipment, net | **235430** | 256786 |
| &nbsp;&nbsp;Operating lease assets | **700373** | 647221 |
| &nbsp;&nbsp;Goodwill | **97115** | 93655 |
| &nbsp;&nbsp;Intangible assets, net | **31866** | 15527 |
| &nbsp;&nbsp;Deferred tax assets | **48285** | 356 |
| &nbsp;&nbsp;Equity investments | **63820** | 55578 |
| &nbsp;&nbsp;Other assets | **42798** | 31295 |
| Total assets | $**2009618** | $2014634 |
| LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS' EQUITY |  |  |
| &nbsp;&nbsp;Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $**255364** | $340877 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | **190676** | 215812 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current operating lease liabilities | **190086** | 202228 |
| &nbsp;&nbsp;Total current liabilities | **636126** | 758917 |
| &nbsp;&nbsp;Long-term debt | **281035** | 225536 |
| &nbsp;&nbsp;Non-current operating lease liabilities | **631412** | 593429 |
| &nbsp;&nbsp;Other non-current liabilities | **24989** | 24356 |
| &nbsp;&nbsp;Total liabilities | **1573562** | 1602238 |
| &nbsp;&nbsp;Redeemable noncontrolling interest | **3155** |  |
| &nbsp;&nbsp;Total shareholders' equity | **432901** | 412396 |
| Total liabilities, redeemable noncontrolling interest, and shareholders' equity | $**2009618** | $2014634 |

---

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**DESIGNER BRANDS INC.** 

**NON-GAAP RECONCILIATION**

(unaudited and in thousands, except per share amounts)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Twelve months ended** | **Twelve months ended** |
| | **January 28, 2023** | January 29, 2022 | **January 28, 2023** | January 29, 2022 |
| Operating expenses | $**(222034)** | $(233574) | $**(896382)** | $(870682) |
| Non-GAAP adjustments: |  |  |  |  |
| &nbsp;&nbsp;CEO transition costs | **3750** |  | **3750** |  |
| &nbsp;&nbsp;Restructuring and termination costs | **6989** | 1153 | **9445** | 3989 |
| &nbsp;&nbsp;Acquisition-related costs and target acquisition costs | **2247** |  | **2647** | 3226 |
| &nbsp;&nbsp;Total non-GAAP adjustments | **12986** | 1153 | **15842** | 7215 |
| Adjusted operating expenses | $**(209048)** | $(232421) | $**(880540)** | $(863467) |
| Operating profit | $**2071** | $22496 | $**187390** | $205221 |
| Non-GAAP adjustments: |  |  |  |  |
| &nbsp;&nbsp;CEO transition costs | **3750** |  | **3750** |  |
| &nbsp;&nbsp;Restructuring and termination costs | **6989** | 1153 | **9445** | 3989 |
| &nbsp;&nbsp;Acquisition-related costs and target acquisition costs | **2247** |  | **2647** | 3226 |
| &nbsp;&nbsp;Impairment charges | **80** | 546 | **4317** | 1720 |
| &nbsp;&nbsp;Total non-GAAP adjustments | **13066** | 1699 | **20159** | 8935 |
| Adjusted operating profit | $**15137** | $24195 | $**207549** | $214156 |
| Net income attributable to Designer Brands Inc. | $**45110** | $14411 | $**162676** | $154481 |
| Non-GAAP adjustments: |  |  |  |  |
| &nbsp;&nbsp;CEO transition costs | **3750** |  | **3750** |  |
| &nbsp;&nbsp;Restructuring and termination costs | **6989** | 1153 | **9445** | 3989 |
| &nbsp;&nbsp;Acquisition-related costs and target acquisition costs | **2247** |  | **2647** | 3226 |
| &nbsp;&nbsp;Impairment charges | **80** | 546 | **4317** | 1720 |
| &nbsp;&nbsp;Loss on extinguishment of debt and write-off of debt issuance costs | **—** |  | **12862** |  |
| &nbsp;&nbsp;Foreign currency transaction losses | **21** | 801 | **130** | 67 |
| &nbsp;&nbsp;Total non-GAAP adjustments before tax effect | **13087** | 2500 | **33151** | 9002 |
| &nbsp;&nbsp;Tax effect of non-GAAP adjustments | **(1428)** | (672) | **(6513)** | (2291) |
| &nbsp;&nbsp;Valuation allowance change on deferred tax assets | **(52089)** | (4500) | **(55654)** | (29950) |
| &nbsp;&nbsp;Total non-GAAP adjustments, after tax | **(40430)** | (2672) | **(29016)** | (23239) |
| &nbsp;&nbsp;Net loss attributable to redeemable noncontrolling interest | **(10)** |  | **(10)** |  |
| Adjusted net income | $**4670** | $11739 | $**133650** | $131242 |
| Diluted earnings per share | $**0.66** | $0.19 | $**2.26** | $2.00 |
| Adjusted diluted earnings per share | $**0.07** | $0.15 | $**1.85** | $1.70 |

---

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**<u>Non-GAAP Measures</u>**

To supplement amounts presented in our consolidated financial statements determined in accordance with accounting principles generally accepted in the United States ("GAAP"), the Company uses certain non-GAAP financial measures, including adjusted operating expenses, adjusted operating profit, adjusted net income, and adjusted diluted earnings per share as shown in the table above. These measures adjust for the effects of: (1) CEO transition costs; (2) restructuring and termination costs, including severance charges other than those included in CEO transition costs; (3) acquisition-related costs and target acquisition costs; (4) impairment charges; (5) loss on extinguishment of debt and write-off of debt issuance costs; (6) foreign currency transaction losses; (7) the net tax impact of such items; (8) the change in the valuation allowance on deferred tax assets; and (9) net loss attributable to redeemable noncontrolling interest. The unaudited adjusted results should not be construed as an alternative to the reported results determined in accordance with GAAP. These financial measures are not based on any standardized methodology and are not necessarily comparable to similar measures presented by other companies. The Company believes these non-GAAP financial measures provide useful information to both management and investors to increase comparability to prior periods by adjusting for certain items that may not be indicative of core operating measures and to better identify trends in our business. The adjusted financial results are used by management to, and allow investors to, evaluate the operating performance of the Company compared to prior periods, when reviewed in conjunction with the Company's GAAP statements. These amounts are not determined in accordance with GAAP and therefore should not be used exclusively in evaluating the Company's business and operations.

**<u>Comparable Sales Performance Metric</u>**

We consider the change in comparable sales from the same previous year period, a primary metric commonly used throughout the retail industry, to be an important indicator of the performance of our retail and direct-to-consumer businesses. We include in our comparable sales metric stores in operation for at least 14 months at the beginning of the fiscal year. Stores are added to the comparable base at the beginning of the year and are dropped for comparative purposes in the quarter in which they are closed. Comparable sales include stores temporarily closed as a result of the COVID-19 pandemic as management continues to believe that this metric is meaningful to monitor our performance. Comparable sales also include e-commerce sales. Comparable sales for the Canada Retail segment

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exclude the impact of foreign currency translation and are calculated by translating current period results at the foreign currency exchange rate used in the comparable period of the prior year. Comparable sales for the Brand Portfolio segment include the direct-to-consumer e-commerce site www.vincecamuto.com. The calculation of comparable sales varies across the retail industry and, as a result, the calculations of other retail companies may not be consistent with our calculation.

CONTACT: Stacy Turnof, DesignerBrandsIR@edelman.com

## Exhibit 99.2

![](dbi4q22infographic001.jpg)

+32% +35% +400bps Pre-2019 Today +4.4% $1.85$2.26

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