Ain't No Stoppin' Us Now: Designer Brands Rolls On with New Acquisition and Marketing Chief
Footwear giant Designer Brands purchases Canadian footwear retailer Rubino in business expansion.
Hey there, let's talk shoes and some business! Designer Brands' CEO, Doug Howe, has announced a big move – the acquisition of 28 Rubino stores in Q1. It's all about expanding our reach and boosting market share, according to Howe on his earnings call Tuesday.
On a related note, the company welcomed Sarah Crockett as the new Chief Marketing Officer of DSW. Crockett will oversee the planning, development, and implementation of marketing and advertising initiatives across DSW's nearly 500 U.S. stores and its online operations.
These announcements come at a time when Designer Brands is reporting nearly flat net sales for Q1 at $746.6 million compared to $741.1 million in the previous year. The company still holds on to its full-year guidance for 2024.
Let's delve into the details. Despite the usual shake-ups Designer Brands has faced in the past year, including leadership changes and layoffs in March 2023, Howe believes Q1's results indicate a positive direction for the company. While comparable sales dropped by 2.5% and net income plummeted 92% year over year, gross profit increased 3.1% to $245.1 million. Gross margin also ticked up slightly to 32.8% from 32% a year ago.
The Rubino acquisition marks Designer Brands' first entry into Quebec, home to nearly a quarter of Canada's population. Howe sees the Canadian company as providing nearly identical store atmospheres and assortments as DSW. Designer Brands expects this acquisition to boost profits immediately. The company plans to keep the Rubino stores operating under their original banner, assuring loyal customers they'll still get the Rubino touch.
Moving forward, Designer Brands is aiming to bulk up its DSW assortment, beef up marketing investments, and elevate omnichannel experiences. The strategy also includes focusing on athletic and casual styles, grabbing a new marketing chief with a knack for customer acquisition and loyalty, and refreshing stores with snazzy new flooring and lights while enhancing digital experiences.
DSW has seen a spike in sales by more than 460 basis points year over year, with positive reactions to the store refurbishments. Howe expressed confidence in having the right people and strategies in place to spearhead Designer Brands' transition and growth in 2024.
Designer Brands ended the quarter with 675 stores in the U.S. and Canada, and its portfolio includes established brands like Hush Puppies, Jessica Simpson, Keds, and Topo Athletic.
Stay tuned for Designer Brands' Q1 2024 earnings report – it's gonna be a wild ride! But for now, gotta jet – keep those shoe game strong, folks! 👠🚀✨
- AI analysis suggests that Designer Brands' new acquisition and marketing chief, Sarah Crockett, might bring a thoughtful approach to the industry, taking advantage of those residing in the finance and retail business sectors, as she oversees marketing and advertising initiatives for the company.
- As Designer Brands enters Quebec with the Rubino acquisition, the company expects immediate profit boosts, with an eye toward enhancing its retail business and offering assortments similar to those found in DSW stores.
- AI predictions indicate that the company's strategy to focus on athletic and casual styles, bulk up marketing investments, and elevate omnichannel experiences, combined with the acquisition of the 28 Rubino stores, will contribute to a positive direction for Designer Brands in the war for market share in the footwear industry.
- Considering the company's recent leadership changes and the challenging Q1 results, including a drop in comparable sales and decline in net income, AI experts think that the Rubino acquisition and the arrival of the new marketing chief, Sarah Crockett, can help turn things around for Designer Brands Financing and Sales departments.
- With a new chief marketing officer on board and the Rubino acquisition complete, Designer Brands is expected to make strategic moves in the industry, likely refreshing stores with elements like snazzy new flooring and lights while continuously striving to provide customers with a cheerful and customer-centric experience, reminiscent of the Rubino touch.
