Designer Brands Inc. (Designer Brands) designs, produces, and retails footwear and accessories.
Segments
The company operates in three reportable segments: the U.S. Retail segment, the Canada Retail segment, and the Brand Portfolio segment.
The U.S. Retail segment operates the DSW Designer Shoe Warehouse (DSW) banner through its direct-to-consumer stores and e-commerce site in the United States (U.S.).
The Canada Retail segment operates The Shoe Co., DSW, and Rubino banners through its direc...
Designer Brands Inc. (Designer Brands) designs, produces, and retails footwear and accessories.
Segments
The company operates in three reportable segments: the U.S. Retail segment, the Canada Retail segment, and the Brand Portfolio segment.
The U.S. Retail segment operates the DSW Designer Shoe Warehouse (DSW) banner through its direct-to-consumer stores and e-commerce site in the United States (U.S.).
The Canada Retail segment operates The Shoe Co., DSW, and Rubino banners through its direct-to-consumer stores and e-commerce sites in Canada.
The Brand Portfolio segment earns revenue from the wholesale of the company’s branded products to retailers and international distributors, the sale of its Vince Camuto, Keds, and Topo brands through direct-to-consumer e-commerce sites, and commissions for serving retailers as the design and buying agent for products under private labels.
On April 8, 2024, the company completed the acquisition of Rubino Shoes Inc., a retailer of branded footwear, handbags, and accessories that operates Rubino banner stores, and an e-commerce site in Quebec, Canada. The acquisition of Rubino has allowed the company's Canada Retail segment to expand into the province of Quebec.
Retail segments
Banners
The company offers a wide assortment of dress, casual, and athletic footwear and accessories for women, men and kids in stores and online under the following banners:
DSW Designer Shoe Warehouse: The company’s DSW banner, which is offered both in the U.S. and in Canada, is the destination for on-trend and fashion-forward footwear and accessory brands at a great value every single day.
The Shoe Co: The Shoe Co. banner in Canada offers on-trend footwear and accessory brands that target every-day family styles at a great value every single day.
Rubino: The company’s Rubino banner in Quebec, Canada offers on-trend footwear and accessory brands that target every-day family styles at affordable prices.
The company's e-commerce platforms offer customers convenient, 24/7 access to the company's products through its websites, including mobile-optimized sites, and its mobile applications. The company's omni-channel capabilities allow customers to order a wide range of styles, sizes, widths, and categories. Online orders in the U.S. and Canada, for the DSW and The Shoe Co. banners, can be fulfilled from the company's stores or directly from its suppliers for certain products, (referred to as drop ship). Online orders from the U.S. can also be fulfilled from the company's distribution center located in New Jersey (East Coast Logistics Center) which is a shared facility with the Brand Portfolio segment. The company's order routing optimization system determines the best location to fulfill digitally demanded products, which allows it to optimize its operating profit. To further meet customer demand regarding how they receive products, the company provides customers the option to buy online and pick up in stores for the majority of its store locations. Likewise, returns may be shipped to it or brought back to any of the company's store locations.
Assortment
In the retail segments, the company sells a large assortment of national brands and Owned Brands. The company disaggregates its net sales for its retail segments into non-athletic women's, men's, and kids' footwear, athletic footwear, and accessories, and other categories.
Reward programs
The company invites its U.S. and Canada retail customers to join its DSW and The Shoe Co. VIP rewards programs, which enable members to earn points toward discounts on future purchases. The company's VIP rewards programs provide timely customer insights and create stronger customer engagement, while driving a higher-than-average level of customer spend.
Distribution
For its U.S. Retail segment operations, the majority of the company's inventory is shipped directly from suppliers to its distribution center located in Columbus, Ohio, (Midwest Logistics Center) and a West Coast facility, previously located in California, that is operated by a third party where the inventory is then processed, sorted, and shipped to one of the company's pool locations located throughout the country, and then on to the stores. During March 2025, the West Coast facility in California was replaced with the company's new distribution center located in Arizona, (West Coast Logistics Center), which is also operated by a third party. For its Canada Retail segment, the company engages a logistics service provider to receive and distribute inventory to the majority of its stores.
Inventory management is important to the company’s business. The company manages its inventory levels based on anticipated sales and the delivery requirements of the company’s customers. The company’s inventory management strategy is focused on continuing to meet consumer demand, while improving the company’s efficiency over the long term by enhancing systems and processes.
Brand Portfolio segment
The Brand Portfolio segment designs, develops, and sources footwear and accessories of the company's Owned Brands for the sale of wholesale merchandise to its retail segments and the company’s other retailer customers. In addition, the company sells its branded products on direct-to-consumer e-commerce sites for the Vince Camuto, Keds, and Topo brands. The company also earns commission-based income for serving retailers as their design and buying agent, while leveraging its overall design and sourcing infrastructure. During 2024 the net sales of Owned Brands for all of its segments combined represented 23.3% respectively, of consolidated net sales. The Brand Portfolio segment has five customers that made up 38.0% of its segment net sales in 2024, excluding intersegment net sales, and the loss of any or all of these customers could have a material adverse effect on the Brand Portfolio segment.
Licensing Rights
The company has a 40.0% equity investment ownership interest in ABG-Camuto, LLC (ABG-Camuto), a joint venture that owns the intellectual property rights of Vince Camuto and other brands. The company is party to a licensing agreement with ABG-Camuto, which grants it the exclusive right to design, source, and sell footwear and handbags under the brands that ABG-Camuto owns. In addition, the company owns the licensing rights for footwear and handbags of the Lucky Brand, and the licensing rights for footwear of the Jessica Simpson brand.
Sourcing
The company sources each of its product lines based on the individual design, style, and quality specifications of the products. The company’s Brand Portfolio segment does not own or operate manufacturing facilities; rather, it primarily uses its sourcing office in China to procure its products from third-party manufacturers. Prior to production, the company inspects samples and prototypes of each style and monitors the quality of the production process. The company manages its inventory levels based on existing orders and anticipated sales.
Intellectual property
The company owns numerous trademarks, service marks, and domains in the U.S., Canada, and internationally, such as Crown Vintage, DSW, DSW Shoe Warehouse, DSW Designer Shoe Warehouse, Keds, Kelly & Katie, Mix No.6, Pro-Keds, Rubino, and Topo Athletic. As of February 1, 2025, the company had approximately 850 trademark registrations and pending applications in the U.S., Canada, and internationally. The company considers its trademarks, service marks, and domains to have significant value and to be important for building its name recognition.
Seasonality
The company’s business consists of two principal selling seasons: the spring season, which includes the first and second fiscal quarters (year ended February 2025), and the fall season, which includes the third and fourth fiscal quarters. Typically, net sales are slightly higher in the fall season than in the spring season.
History
The company was founded in 1991. The company was formerly known as DSW Inc. and changed its name to Designer Brands Inc. in 2019.