COLUMBUS, Ohio, March 19, 2019 /PRNewswire/ -- DSW Inc. (the
"Company") (NYSE: DSW), one of North
America's largest designers, producers and retailers of
branded footwear and accessories, today presented the Company's
three-year strategic priorities designed to leverage its unique
business model to unlock value and deliver 2021 Adjusted earnings
per share in the range of $2.65 to
$2.75. The Company also today
unveiled its new corporate name – Designer Brands Inc. ["Designer
Brands"] – which 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.
Experience the interactive Multichannel News Release here:
https://www.multivu.com/players/English/8499351-dsw-rebranding-designer-brands/
"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. 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," stated Roger Rawlins, Chief Executive Officer of
Designer Brands. "We look forward to continuing to drive innovation
and increase market share by delivering positive comp sales while
also growing complementary categories and markets."
Mr. Rawlins continued, "With DSW's world-class omni-channel
capabilities and loyal customer base, combined with Camuto Group's
leading design and sourcing capabilities and The Shoe Company's
powerful last-mile solution, Designer Brands has a strong platform
to grow and lead the footwear market."
As outlined in today's presentations, Designer 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 program 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 percent 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
- Capitalize on increased buying power, leverage and production
cost insights with vendors;
- Optimize inventory management, including pursuing cross-border
and inter-segment opportunities; and
- Drive operational excellence and efficiencies through shared
best practices.
Fiscal 2021 Financial Objectives and Fiscal 2019
Outlook
The Company provided its financial expectations for 2021, as
follows:
- Achieve adjusted earnings per share in the range of
$2.65 to $2.75
- Achieve approximately 5.5% revenue CAGR
- Generate consistent low single-digit comparable store sales
growth
- Improve gross profit by 240 basis points from 2018 level
- Drive improved operating income across its three segments over
the next three years, including:
-
- 13% operating income CAGR at DSW
- 19% operating income CAGR at The Shoe Company
- $26 million operating income
growth at Camuto Group
- Target $800 million cumulative
cash flow over the next three years
For fiscal 2019, which is the 52-week period ending February 1, 2020, the Company expects to achieve
low double-digit revenue growth as compared to fiscal 2018 revenue
of $3.2 billion, which included a
$189 million contribution from the
Canada Retail segment and a $96
million contribution from the new Brand Portfolio segment.
The Company anticipates increasing comparable store sales in the
low single-digit range.
Fiscal 2019 adjusted earnings per share is expected to range
between $1.80 to $1.90. This represents year-over-year earnings
growth of 5% to 11% excluding fiscal 2018 losses from the wind-down
of operations of exited business and including fiscal 2018
estimated losses for the first quarter of the Canada Retail segment
and three quarters of the Branded Portfolio segment. The Company's
outlook assumes a tax rate of approximately 27% and approximately
81 million shares outstanding.
New Corporate Name
Effective today, the parent company, DSW Inc. becomes Designer
Brands. In conjunction with its corporate name change, Designer
Brands will change the Company's ticker symbol from "DSW" to "DBI,"
effective at the start of trading on April
2, 2019, which has been approved by the New York Stock
Exchange. As of that date, the "DSW" trading symbol will no longer
be active. No action is needed from the Company's current
shareholders relative to the ticker symbol change.
Investor Day Webcast
An archived replay of the webcast for Designer Brand's 2019
Investor Day can be accessed at
https://www.webcaster4.com/Webcast/Page/1213/29255.
About Designer Brands
Designer Brands is one of North
America's largest designers, producers and retailers of
footwear and accessories. The company operates a portfolio of
retail concepts in nearly 1,000 locations under the DSW Designer
Shoe Warehouse, The Shoe Company, and Shoe Warehouse banners and
services footwear departments in the U.S through its Affiliated
Business Group. Designer Brands designs and produces footwear
and accessories through Camuto Group, a leading manufacturer
selling in more than 5,400 doors worldwide. The Camuto Group owns
licensing rights for the Jessica Simpson® footwear business, and
footwear and handbag licenses for Lucky Brand® and Max Studio®. In
partnership with a joint venture with Authentic Brands Group,
Designer Brands also owns a stake in Vince Camuto®, Louise et Cie®,
Sole Society®, CC Corso Como®, Enzo Angiolini® and others. More
information can be found at www.designerbrands.com.
Cautionary Statement Regarding Forward-Looking Information
for Purposes of the "Safe Harbor" Provisions of the Private
Securities Litigation Reform Act of 1995
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,
including the statements made in our "Fiscal 2021 Financial
Objectives and Fiscal 2019 Outlook." You can identify these
forward-looking statements by the use of forward-looking words such
as "outlook," "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: our success in growing our store base and digital
demand; risks related to our acquisitions of Camuto Group and TSL,
including the possibility that the anticipated benefits of the
acquisitions are not realized when expected or at all; our ability
to protect our reputation and to maintain the brands we license;
maintaining strong relationships with our vendors, manufacturers
and wholesale customers; our ability to anticipate and respond to
fashion trends, consumer preferences and changing customer
expectations; risks related to the loss or disruption of our
distribution and/or fulfillment operations; continuation of
agreements with and our reliance on the financial condition of
Stein Mart; our ability to execute
our strategies; fluctuation of our comparable sales and quarterly
financial performance; risks related to the loss or disruption of
our information systems and data; our ability to prevent or
mitigate breaches of our information security and the compromise of
sensitive and confidential data; failure to retain our key
executives or attract qualified new personnel; our reliance on our
loyalty program and marketing to drive traffic, sales and customer
loyalty; risks related to leases of our properties; our
competitiveness with respect to style, price, brand availability
and customer service; our reliance on foreign sources for
merchandise and risks inherent to international trade, including
escalating trade tensions between the U.S. and other countries, as
well as U.S. laws affecting the importation of goods, such as
recent tariffs imposed on Chinese goods imported to the U.S.;
uncertainty related to future legislation, regulatory reform,
policy changes, or interpretive guidance on existing legislation,
including the impact of the Tax Cuts and Jobs Act; uncertain
general economic conditions; risks related to holdings of cash and
investments and access to liquidity; and fluctuations in foreign
currency exchange rates. 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.
¡ References to "DSW" refer to the DSW
Designer Shoe Warehouse banner.
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SOURCE Designer Brands