DSW parent firm purchases footwear brand Topo Athletic for expansion within sports footwear sector.
Designer Brands, the parent company of DSW Designer Shoe Warehouse, has made a strategic move by acquiring Topo Athletic, a company specialising in performance athletic and outdoor footwear. The acquisition is part of Designer Brands' ongoing strategy to expand its owned brands portfolio.
Topo Athletic's founder and CEO, Tony Post, expressed his excitement about the deal. In a statement, he said, "Designer Brands brings a deep set of resources that will help Topo continue to grow, innovate and deliver a better experience for our customers for years to come." Post will continue to lead Topo Athletic, reporting to Designer Brands President Bill Jordan.
The acquisition provides Topo Athletic with additional resources to fuel its growth and innovation. Designer Brands President Bill Jordan is confident that Topo will strengthen their Owned Brands portfolio and help extend their reach around the world.
Prior to the Topo acquisition, Designer Brands' owned brands portfolio included Jessica Simpson, Crown Vintage, Mix No. 6, Lucky Brand, and Kelly & Katie. Designer Brands also acquired LeTigre this summer.
The financial terms of the acquisition were not disclosed. However, Designer Brands reported a 1.4% increase in third-quarter net sales to $865 million, a decrease in gross profit to $285.8 million, and a net income of $45.2 million. This growth follows 68% year-over-year revenue growth in owned brands earlier this year.
In its most recent earnings, Designer Brands reported that owned brand sales grew 25% year over year, a significant increase that reflects the company's commitment to its private label strategy. Along with Designer Brands, retail giants like Target and Macy's are also pursuing a private label strategy.
Designer Brands has guaranteed access to owned brands for a set period, with some owned outright and others available through licensing agreements. This diversified approach allows the company to adapt to market trends and consumer preferences.
Tony Post, before founding Topo Athletic, was previously senior vice president of product and marketing at The Rockport Company, and also served as CEO of Vibram USA and launched Vibram FiveFingers minimalist shoes. His expertise in the industry is expected to contribute significantly to Designer Brands' growth.
With the acquisition of Topo Athletic, Designer Brands aims to strengthen its Owned Brands portfolio and help extend its reach around the world. As of the last quarter of 20XX, there is no available information about any company acquiring Topo Athletic. However, with this strategic move, Designer Brands is poised to make a strong impact in the athletic footwear market.
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