Designer Brands Inc (DBI) 2022 Q3 法說會逐字稿

Good morning, and welcome to the Designer Brands Inc. Third Quarter 2022 Earnings Call. (Operator Instructions) Please note, this event is being recorded.

早上好，歡迎來到 Designer Brands Inc. 2022 年第三季度財報電話會議。 （操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to Jessie Miller. Please go ahead.

我現在想把會議轉交給 Jessie Miller。請繼續。

Good morning. Earlier today, the company issued a press release comparing results of operations for the 13-week period ended October 29, 2022, to the 13-week period ended October 30, 2021.

早上好。今天早些時候，該公司發布了一份新聞稿，比較了截至 2022 年 10 月 29 日的 13 週期間和截至 2021 年 10 月 30 日的 13 週期間的運營結果。

Please note that remarks made about the future expectations, plans and prospects of the company constitute forward-looking statements. Results may differ materially due to various factors listed in today's press release and the company's public filings with the SEC. The company assumes no obligation to update any forward-looking statements.

請注意，有關公司未來預期、計劃和前景的評論構成前瞻性陳述。由於今天的新聞稿和公司向美國證券交易委員會提交的公開文件中列出的各種因素，結果可能存在重大差異。公司不承擔更新任何前瞻性陳述的義務。

Joining us today are Roger Rawlins, Chief Executive Officer; Jared Poff, Chief Financial Officer; and Doug Howe, President of DSW. Now let me turn the call over to Roger.

今天加入我們的是首席執行官 Roger Rawlins；賈里德波夫，首席財務官；和 DSW 總裁 Doug Howe。現在讓我把電話轉給羅傑。

Good morning, and thank you, everyone, for joining us today. We posted another consecutive quarter of solid results and made material progress on our brand-building journey. We ended the quarter with comparable sales up 3% compared to the third quarter of 2021, which was on top of strong comp net sales growth last year of 41%. We are incredibly proud of these results as we lapped a record third quarter in 2021 and invite you to review our earnings infographic on our Investor Relations site that highlights some of these accomplishments.

早上好，謝謝大家今天加入我們。我們又連續一個季度取得了穩健的業績，並在我們的品牌建設之旅中取得了實質性進展。與 2021 年第三季度相比，我們在本季度結束時的可比銷售額增長了 3%，這是在去年強勁的淨銷售額增長 41% 的基礎上取得的。我們對這些結果感到無比自豪，因為我們在 2021 年第三季度取得了創紀錄的成績，並邀請您在我們的投資者關係網站上查看我們的收益信息圖，其中突出了其中一些成就。

Notably, we made tangible progress against our long-term plan of doubling sales of our owned bands by 2026 while also maintaining our sales levels of national brands as we continue to strengthen relationships with our top partners. As you know, our owned brands strategy will continue to be the key driver of our growth over the next 5 years as we have the unique ability to intimately understand our customers so we can design, source and sell the products they love. We're excited to share that in the third quarter, owned brands sales grew 25% compared to the same period last year. Our direct-to-consumer sales, through our retail stores and websites, delivered a 33% increase to last year, and wholesale distribution also grew at 8%. And what makes this even more impressive, this growth is coming at a time when the industry is flooded with inventory.

值得注意的是，隨著我們繼續加強與頂級合作夥伴的關係，我們在實現到 2026 年將我們自有樂隊的銷售額翻一番的長期計劃方面取得了切實進展，同時還保持了我們民族品牌的銷售水平。如您所知，我們的自有品牌戰略將繼續成為我們未來 5 年增長的主要驅動力，因為我們擁有深入了解客戶的獨特能力，因此我們可以設計、採購和銷售他們喜愛的產品。我們很高興與大家分享，在第三季度，自有品牌的銷售額與去年同期相比增長了 25%。我們通過零售店和網站直接面向消費者的銷售額比去年增長了 33%，批發分銷也增長了 8%。更令人印象深刻的是，這種增長是在行業庫存氾濫之際出現的。

And while we see this inventory pressure across the industry, our ability to self-liquidate excess product through our own retail clearance section is a key differentiator of our unique business model that gives us confidence in our ability to continue to build our owned brands penetration and extract as much margin as possible along the way. Doug will dive more into our owned brands strategy in just a few moments.

雖然我們看到了整個行業的庫存壓力，但我們通過自己的零售清倉部分自行清算過剩產品的能力是我們獨特商業模式的一個關鍵差異化因素，使我們有信心繼續建立我們自有品牌的滲透率和沿途提取盡可能多的利潤。 Doug 稍後將深入探討我們的自有品牌戰略。

As we've been transforming into a brand-builder, we've been making strategic investments in talent and experience. To that end, over the last 2 years, we have created new positions and teams inside of Designer Brands, including a chief supply chain and sourcing office, brand-level leadership and international sourcing groups in new parts of the world.

在我們轉型為品牌建設者的過程中，我們一直在對人才和經驗進行戰略投資。為此，在過去 2 年中，我們在 Designer Brands 內部設立了新的職位和團隊，包括首席供應鍊和採購辦公室、品牌級領導和世界新地區的國際採購團隊。

Additionally, we just announced last week the appointment of 2 new board members, Rich Paul, CEO and Founder of KLUTCH Sports Group, the powerhouse agency representing some of the biggest athletes across major professional sports; and Tami Fersko, Chief Operations and Supply Chain Manager of Centric Brands, a leading global lifestyle brand collective, who brings strong leadership in this space, including past executive roles at sourcing and branding leaders, Li & Fung and The Jones Group. Both Rich and Tami bring extensive brand-building expertise and knowledge of the footwear industry, and we look forward to their input on our strategy.

此外，我們上周剛剛宣布任命 2 名新董事會成員，Rich Paul，KLUTCH Sports Group 的首席執行官兼創始人，KLUTCH Sports Group 是一家代表主要職業體育界一些最偉大運動員的強大機構； Tami Fersko，Centric Brands 的首席運營和供應鏈經理，Centric Brands 是全球領先的生活方式品牌集團，她在這一領域帶來了強大的領導力，包括曾在採購和品牌領導者 Li & Fung 和 The Jones Group 擔任過高管職務。 Rich 和 Tami 都帶來了廣泛的品牌建設專業知識和鞋業知識，我們期待他們對我們的戰略提出意見。

As we've been calling out since the introduction of our initial fiscal 2022 guidance, the third quarter was planned to be the quarter in which our strategic efforts to bring back our clearance shopper were expected to be running on all cylinders, and I'm happy to report we were wildly successful. Our clearance sales were up 28% compared to the third quarter of 2021. We were pleased to see this critical part of our business model return to full strength, especially at a time when the industry faces large inventory challenges and more consumers are looking to cut back on discretionary spending.

正如我們自推出最初的 2022 財年指南以來一直呼籲的那樣，第三季度計劃是我們恢復清倉購物者的戰略努力預計將在所有氣瓶上運行的季度，我是很高興地報告我們取得了巨大的成功。與 2021 年第三季度相比，我們的清倉銷售額增長了 28%。我們很高興看到我們商業模式的這一關鍵部分恢復了全部實力，尤其是在行業面臨巨大庫存挑戰和更多消費者希望削減的時候回到可自由支配的支出上。

Given the material success we have had in growing our owned brands and given the structural changes we have made in our overall retail business, we have seen our gross margin rates materially and substantially improved from legacy levels. And while we will always be subject to the impacts of macro conditions and consumer sentiment, these structural changes should keep our margin profile consistently above legacy levels we delivered in 2019 and prior.

鑑於我們在發展自有品牌方面取得的重大成功，以及我們在整體零售業務中所做的結構性變革，我們已經看到我們的毛利率比傳統水平有了實質性的顯著提高。雖然我們將始終受到宏觀環境和消費者情緒的影響，但這些結構性變化應該會使我們的利潤率狀況始終高於我們在 2019 年及之前實現的傳統水平。

In the third quarter specifically, we saw some of those pressures take hold. First, many of the largest footwear industry players, especially athletic brands, are massively over-inventoried and have become very aggressive in their own DTC businesses, including exact styles we carry in our retail assortments. We noted last quarter that this was an area of potential risk as the effects of competitors lowering price impacts the entire industry.

特別是在第三季度，我們看到其中一些壓力持續存在。首先，許多最大的鞋類行業參與者，尤其是運動品牌，庫存嚴重過剩，並且在他們自己的 DTC 業務中變得非常積極，包括我們在零售品類中提供的確切款式。我們在上個季度指出，這是一個潛在風險領域，因為競爭對手降價的影響會影響整個行業。

Additionally, as you've heard many other brands in big-box retailers discussed, we saw a drop in discretionary demand starting in the last 2 weeks of October. This drop came on very suddenly and appears to be widespread and continuing across much of the consumer market. With these impacts, we are returning back to a range within our original 2022 EPS guidance. Our revised guidance still includes mid-single-digit retail comp sales growth and full year adjusted EPS in the range of $1.75 to $1.80. This still puts our EPS significantly above 2019 given our structurally improved gross margin profile. Jared will go into more details around some of the numbers and efforts we are implementing across the business to minimize the impact of this uncertainty as much as possible.

此外，正如您在大型零售商中聽到的許多其他品牌所討論的那樣，我們發現從 10 月的最後兩週開始，可自由支配的需求有所下降。這種下降來得非常突然，並且似乎在大部分消費市場中普遍存在並持續存在。由於這些影響，我們將回到最初的 2022 年每股收益指導範圍內。我們修訂後的指引仍然包括中等個位數零售銷售額增長和全年調整後每股收益在 1.75 美元至 1.80 美元之間。鑑於我們結構性改善的毛利率狀況，這仍然使我們的每股收益顯著高於 2019 年。 Jared 將詳細介紹我們在整個企業中實施的一些數字和努力，以盡可能減少這種不確定性的影響。

In closing, I want to take this opportunity to thank our associates for remaining nimble in continuing to support designer brands. I'll now turn it over to Doug Howe, President of DSW. Doug?

最後，我想藉此機會感謝我們的同事在繼續支持設計師品牌方面保持敏捷。我現在將把它交給 DSW 總裁道格豪。道格？

Thank you, Roger, and good morning, everyone. I want to talk first about the incredibly exciting developments and milestones we achieved in this third quarter. Our journey as a brand-builder is continuing at an exciting clip, and we continue to deliver against our long-term strategy of doubling owned brands net sales by 2026 and maintaining national brands.

謝謝羅傑，大家早上好。我想首先談談我們在第三季度取得的令人難以置信的激動人心的發展和里程碑。我們作為品牌建設者的旅程正在以令人興奮的速度繼續，我們將繼續實現我們的長期戰略，即到 2026 年將自有品牌的淨銷售額翻一番，並保持民族品牌。

Designer Brands strategic differentiator is the unique synergies between the brands we build and our best-in-class retail infrastructure. We have a unique ability to connect with our customers and identify their needs and present them with the widest assortment of brands they love across the highly developed and in-place omni infrastructure.

Designer Brands 的戰略優勢在於我們打造的品牌與我們一流的零售基礎設施之間的獨特協同作用。我們擁有獨特的能力，可以與我們的客戶建立聯繫並確定他們的需求，並在高度發達和就位的全方位基礎設施中向他們展示他們喜愛的最廣泛的品牌。

In the quarter, our owned brands represented 27% of DBI revenue compared to 22% in the third quarter last year. This puts us well on our way to our goal of making our owned brands approximately 1/3 of our total revenue by 2026. That is a huge accomplishment on our path to elevating DBI status as a brand-builder.

本季度，我們的自有品牌佔 DBI 收入的 27%，而去年第三季度為 22%。這使我們順利實現我們的目標，即到 2026 年使我們的自有品牌收入約占我們總收入的 1/3。這是我們提升 DBI 作為品牌建設者地位的巨大成就。

I want to specifically highlight 2 of these owned brands and some exciting progress that was made in the quarter. We are very enthusiastic about the momentum we are seeing with Crown Vintage, a brand that is vintage inspired at its core and free spirited in its full with shoes and accessories that invite customers to embrace their individuality. In the quarter, we launched a collaboration partnership with Emma Roberts for our Crown Vintage brand, which included a robust marketing campaign across national and social media channels. This campaign received over 6 billion press impressions and 120 million social media impressions and was the strongest social celebrity content we have ever had.

我想特別強調其中的兩個自有品牌以及本季度取得的一些令人振奮的進展。我們對 Crown Vintage 的發展勢頭充滿熱情，該品牌以復古為核心，並以其鞋類和配飾充分體現自由精神，邀請顧客擁抱他們的個性。在本季度，我們與 Emma Roberts 就我們的 Crown Vintage 品牌建立了合作夥伴關係，其中包括在全國和社交媒體渠道開展的強有力的營銷活動。該活動獲得了超過 60 億次媒體曝光和 1.2 億次社交媒體曝光，是我們有史以來最強大的社交名人內容。

You can see some of the beautiful campaign imagery on our Q3 '22 infographic. As part of this launch, we hosted pop-up shops in both Los Angeles and Nashville that generated over 1 billion impressions, including 25 million organic social media impressions. Crown Vintage searches on Google have been up significantly with index scores trending up over last year in the same period by 43%, indicating the consumer interest we're generating beyond DSW channels.

您可以在我們的 Q3 '22 信息圖上看到一些精美的活動圖像。作為此次發布的一部分，我們在洛杉磯和納什維爾舉辦了快閃店，產生了超過 10 億次展示，其中包括 2500 萬次有機社交媒體展示。 Crown Vintage 在 Google 上的搜索量顯著上升，指數得分比去年同期上升了 43%，表明我們在 DSW 渠道之外引起了消費者的興趣。

Additionally, as we move through the fall and winter, we are proud that Crown Vintage was the #1 demanded brand in women's boots at DSW during Septober and can sit comfortably in the neighborhood with other brand partners such as UGG, Lucky Brand and Vince Camuto.

此外，隨著秋冬季節的到來，我們感到自豪的是，Crown Vintage 是 9 月份 DSW 女靴需求量第一的品牌，並且可以與 UGG、Lucky Brand 和 Vince Camuto 等其他品牌合作夥伴舒適地坐在一起.

Similarly, Kelly & Katie met some incredible milestones in the past few months. In the third quarter, Kelly & Katie grew in the triple digits as it continues to resonate with our customers. And in fact, was 1 of our top 3 brands sold at DSW, with 2 styles in the top 10 styles at DSW for the third quarter.

同樣，Kelly & Katie 在過去幾個月也遇到了一些令人難以置信的里程碑。在第三季度，Kelly & Katie 以三位數的速度增長，因為它繼續引起我們客戶的共鳴。事實上，是我們在 DSW 銷售的前 3 大品牌之一，第三季度在 DSW 的前 10 大款式中有 2 種款式。

We are excited about the progress we are making in our owned brands portfolio and look forward to continuing our brand-building journey with the official launch of our first athleisure brand, Le TIGRE. You can expect more exciting upcoming announcements in the near future.

我們對我們在自有品牌組合方面取得的進展感到興奮，並期待通過正式推出我們的第一個運動休閒品牌 Le TIGRE 繼續我們的品牌建設之旅。您可以期待在不久的將來發布更多激動人心的公告。

We continue to hold true to our goal of having the best possible assortment available both in stores and online, which is allowing us to attract a broader customer base. Specifically, as it relates to clearance, we have reactivated 2 million shoppers who had not shopped with us since the pandemic due to our lack of clearance product.

我們繼續堅持我們的目標，即在商店和網上提供盡可能最好的分類，這使我們能夠吸引更廣泛的客戶群。具體來說，在清倉方面，我們已經重新激活了 200 萬購物者，他們自大流行以來由於我們缺乏清倉產品而沒有在我們這裡購物。

At DBI, we have a long-standing history of rich customer data. We know how to best leverage that data to design and market to our customers in effective ways to meet them with the products they demand and the way they want to engage. Our warehouse reimagine store in Houston is another example of how we are meeting our customers' needs across the board. We have received overwhelmingly positive feedback from customers relative to how light and bright the store feels, with customers describing the store as warm and welcoming with a better shopping experience. Our warehouse reimagined store allows for increased capacity in smaller square footage, which has resulted in a double-digit sales productivity increase.

在 DBI，我們擁有豐富的客戶數據的悠久歷史。我們知道如何最好地利用這些數據以有效的方式設計和營銷我們的客戶，以滿足他們所需的產品和他們想要的參與方式。我們在休斯頓的倉庫改造商店是我們如何全面滿足客戶需求的另一個例子。我們從顧客那裡收到了關於商店感覺如何明亮的壓倒性積極反饋，顧客描述商店溫暖而熱情，購物體驗更好。我們的倉庫經過重新設計，可以在更小的平方英尺內增加容量，從而實現了兩位數的銷售效率增長。

The expanded kids' section has also increased customer engagement. Also, brand new to our shopping experience, we have listened to our customer and have launched Scan & Go self-checkout at this location. Customers have responded and we have seen nearly 1/3 of transactions run through these kiosks. Intimately knowing our customer and regularly speaking with them is such a vitally important tool for us as we continuously evolve our brands and our shopping experience and is a massive competitive advantage for all parts of Designer Brands business.

擴大的兒童部分也增加了客戶參與度。此外，作為全新的購物體驗，我們聽取了客戶的意見，並在此地點推出了 Scan & Go 自助結賬服務。客戶已經作出回應，我們已經看到近 1/3 的交易是通過這些自助服務亭進行的。密切了解我們的客戶並定期與他們交談對我們來說是一個非常重要的工具，因為我們不斷發展我們的品牌和我們的購物體驗，這對 Designer Brands 業務的所有部分來說都是一個巨大的競爭優勢。

Turning to the seasonal focus in the third quarter. We mentioned on our last earnings call our increased attention to back-to-school during the third quarter as we lean into this newest season for DBI, which we only started capitalizing on in earnest in 2021. Overall demand increased 4% on top of a 2% increase last year compared to 2019. And we were especially pleased with our kids' business that delivered a 2% increase in sales on top of a 40% increase last year compared to 2019.

轉向第三季度的季節性焦點。我們在上一次財報電話會議上提到，隨著我們進入最新的 DBI 季節，我們在第三季度更加關注返校，我們在 2021 年才開始認真利用這一季。總體需求增長了 4%與 2019 年相比，去年增長了 2%。我們特別高興的是，我們的兒童業務在去年與 2019 年相比增長 40% 的基礎上實現了 2% 的銷售額增長。

Let me turn to Septober, which, as you all know, is an incredibly important season for us. Our owned brands performed exceptionally well during this time period. In our women's boots category, 5 of the top 10 brands sold were owned brands, with Crown Vintage holding the spot as the #1 demanded brand during Septober, as was mentioned earlier.

讓我談談 9 月，眾所周知，這對我們來說是一個極其重要的季節。在此期間，我們的自有品牌表現異常出色。在我們的女靴類別中，銷量前 10 名的品牌中有 5 個是自有品牌，如前所述，Crown Vintage 佔據 9 月份需求量第一的品牌位置。

Additionally, those 5 women's boots brands posted 28% growth compared to the same period last year.

此外，這 5 個女靴品牌與去年同期相比增長了 28%。

We did see some unplanned softness in the rest of our assortment as temperatures were much warmer than normal across most of the Septober period. Additionally, as Roger referenced, we saw a sudden drop off in consumer traffic and demand that most of the consumer discretionary markets saw starting in the back half of October.

由於 9 月期間的大部分時間溫度比正常溫度高得多，因此我們確實在我們的其他品種中看到了一些意外的柔軟。此外，正如羅傑所提到的，我們看到消費者流量和需求突然下降，大多數非必需消費品市場從 10 月下旬開始出現這種情況。

If we look to historical builds for the balance of the year and apply that trend to where we ended October, we feel there is pressure to the original plan for Q4. This, coupled with the continued massively competitive promotional posture of the branded athletic business right now, is what is giving us reason to be cautious and bring down balance-of-year expectations.

如果我們查看今年餘下時間的歷史構建並將該趨勢應用到我們 10 月份結束時的情況，我們認為第 4 季度的原始計劃存在壓力。這一點，再加上品牌運動業務目前持續的大規模競爭促銷態勢，讓我們有理由保持謹慎並降低年度收支預期。

Before I pass it over to Jared, I want to thank the team for their hard work throughout the quarter. I was really impressed with how the team stepped up time and time again to read, react and adapt as necessary.

在我將它傳遞給 Jared 之前，我想感謝團隊在整個季度的辛勤工作。團隊如何一次又一次地加強閱讀、反應和根據需要進行調整，給我留下了深刻的印象。

With that, I'll pass it over to Jared. Jared?

有了這個，我會把它傳遞給賈里德。賈里德？

Thank you, Doug, and good morning, everyone. Please note that the financial results that we will reference during the remainder of today's call excludes certain adjustments recorded under GAAP unless specified otherwise. For a complete reconciliation of GAAP to adjusted earnings, please reference our press release.

謝謝你，道格，大家早上好。請注意，除非另有說明，否則我們將在今天電話會議的剩餘時間參考的財務結果不包括根據 GAAP 記錄的某些調整。如需 GAAP 與調整後收益的完整對賬，請參考我們的新聞稿。

I want to echo Roger and Doug's comments around the pride we have in our third quarter results. We delivered on our strategic goals of owned brand growth and the reestablishment of our critically important clearance business and customer while also seeing the fruits of our changed and diversified business model come to bear. We put up numbers that demonstrated the power of this evolved Designer Brands, and I couldn't be prouder of what the teams continue to accomplish.

我想回應羅杰和道格對我們對第三季度業績感到自豪的評論。我們實現了自有品牌增長和重建我們至關重要的清關業務和客戶的戰略目標，同時也看到了我們改變和多元化業務模式的成果。我們提供的數字證明了這個不斷發展的 Designer Brands 的力量，我為團隊繼續取得的成就感到無比自豪。

Let's first review our results. For the third quarter, sales increased 1.4% to $865 million compared to the same quarter 2021. For the third quarter, total comps were up 3% on top of a strong 40.8% comp last year. Within this growth, we saw positive sales across all of our segments.

讓我們首先回顧一下我們的結果。與 2021 年同期相比，第三季度銷售額增長 1.4% 至 8.65 億美元。第三季度，總收入在去年 40.8% 的強勁增長基礎上增長了 3%。在這種增長中，我們看到所有部門的銷售額都在增長。

U.S. retail comps for the third quarter were up 1.1% compared to up 43.9% in the prior year. [DC.com comps] were up 27% compared to a gain of 50.4% in the prior year. And Canada continues to see strong growth and posted comps of 18.8% for the quarter on top of 15.2% in the same quarter of 2021.

第三季度美國零售業業績增長 1.1%，而去年同期增長 43.9%。 [DC.com comps] 與去年同期的 50.4% 相比上漲了 27%。加拿大繼續保持強勁增長，在 2021 年同一季度的 15.2% 的基礎上，本季度的收入增長率為 18.8%。

Gross profit for the quarter was $285.8 million. As planned and as previously communicated, our consolidated gross profit rate for the quarter decreased to last year as we strategically and intentionally reestablished our clearance business and won back that lapsed clearance shopper while coming in meaningfully above 2019 given the structural changes we've made in our business.

本季度的毛利潤為 2.858 億美元。正如計劃和之前所傳達的那樣，我們本季度的綜合毛利率低於去年，因為我們在戰略上和有意地重新建立了我們的清倉業務，並贏回了流失的清倉購物者，同時鑑於我們在 2019 年所做的結構性調整，我們的收入顯著高於 2019 年我們的業務。

Our gross profit rate for the quarter came in at 33%, 370 basis points above 2019's rate of 29.3%.

我們本季度的毛利率為 33%，比 2019 年的 29.3% 高出 370 個基點。

In the third quarter, consolidated adjusted SG&A was $221 million. Given our sales increase and the expense mitigation tactics we implemented as soon as we saw some of the macro pressures surface, we were able to hold our adjusted SG&A ratio relatively in line with last year at 25.5% of sales in the third quarter compared to 25.1% of sales last year.

第三季度，綜合調整後的 SG&A 為 2.21 億美元。鑑於我們的銷售額增長以及我們在看到一些宏觀壓力出現後立即實施的費用緩解策略，我們能夠將調整後的 SG&A 比率保持在與去年相對一致的水平，第三季度佔銷售額的 25.5%，而去年同期為 25.1%去年銷售額的百分比。

Adjusted operating profit in the third quarter was $67.1 million and 7.8% of sales, 340 basis points above 2019's operating profit rate. We had $4.8 million of net interest expense during the third quarter compared to $7.7 million in the prior year.

第三季度調整後的營業利潤為 6710 萬美元，佔銷售額的 7.8%，比 2019 年的營業利潤率高出 340 個基點。我們在第三季度的淨利息支出為 480 萬美元，而去年同期為 770 萬美元。

Our effective tax rate on adjusted results was 25.9% in the third quarter. Third quarter adjusted net income was $46.1 million or $0.67 per diluted share.

我們在第三季度調整後的實際稅率為 25.9%。第三季度調整後淨收入為 4610 萬美元或每股攤薄收益 0.67 美元。

Turning to our inventory. We ended the third quarter with inventories of $681.8 million compared to $602.1 million last year. As planned and as previously communicated, we continue to decline in our inventory comp versus last year and expect for this to continue as we round out the year. Inventory levels were elevated at the end of the second quarter, and we flagged they would be coming down throughout the year. Accordingly, we ended the quarter with retail inventories up 14% on a square-footage basis compared to the third quarter of 2021, materially down from up 33% at the end of the second quarter. We expect to end the year much closer to last year's inventory levels.

轉向我們的庫存。我們在第三季度末的庫存為 6.818 億美元，而去年為 6.021 億美元。按照計劃和之前的溝通，我們的庫存與去年相比繼續下降，並預計這一情況將在今年結束時繼續下去。庫存水平在第二季度末有所上升，我們表示它們將在全年下降。因此，與 2021 年第三季度相比，我們在本季度末的零售庫存按平方英尺計算增長了 14%，大大低於第二季度末 33% 的增長。我們預計年底的庫存水平將更接近去年的水平。

Unlike other large brands who have had to turn to liquidators as part of their solution to slow-moving inventory, we have a self-liquidating machine through our DSW clearance business that allows us to perform better than others when needing to clear through inventory. As a brand-builder, this is a massive differentiator to our model and is why we needed to reestablish our clearance business, which we did.

與其他不得不求助於清算人作為解決滯銷庫存解決方案的一部分的大品牌不同，我們通過 DSW 清關業務擁有一台自動清算機，這使我們在需要清算庫存時能夠比其他人表現更好。作為品牌建設者，這是我們模式的一個巨大差異化因素，也是我們需要重建清關業務的原因，我們也這樣做了。

Importantly, as we move into the fourth quarter, our liquidity position remains strong. During the quarter, we repurchased 1.3 million shares. Repurchases year-to-date through Q3 were 10.7 million, which is equivalent to roughly 15% of our 73 million shares outstanding at the beginning of the year.

重要的是，隨著我們進入第四季度，我們的流動性狀況依然強勁。本季度，我們回購了 130 萬股股票。今年迄今截至第三季度的回購量為 1070 萬股，相當於我們年初 7300 萬股已發行股票的約 15%。

We ended the quarter with $62.5 million of cash in our total liquidity, which includes cash and availability under our revolver was $193.4 million. We had $130.9 million available to draw on our revolving credit facility.

本季度結束時，我們的總流動資金中有 6250 萬美元的現金，其中包括現金和我們循環貸款下的可用性為 1.934 億美元。我們有 1.309 億美元可用於使用我們的循環信貸額度。

In addition, we are pleased to share that we received $120 million of the $160 million CARES Act tax refund due to us from the IRS in November, which was immediately used to pay down debt, and we ended November with well over $300 million of total liquidity. We continue to await the receipt of the remaining $40 million, which we expect as soon as the standard audits of the applicable prior tax years conclude.

此外，我們很高興地與大家分享，我們在 11 月份收到了美國國稅局應付給我們的 1.6 億美元 CARES 法案退稅中的 1.2 億美元，這些退稅立即用於償還債務，而我們在 11 月底的總金額遠遠超過 3 億美元流動性。我們繼續等待收到剩餘的 4000 萬美元，我們預計在適用的先前納稅年度的標準審計結束後儘快收到。

As mentioned, we could not be more pleased with the success we've had with our strategic initiatives. However, macro pressures, including a constrained consumer and an excess of inventory in the industry, resulted in a drop in demand in the last 2 weeks of October. We expect similar dynamics to persist, and therefore, we feel it is prudent to revise our full year guidance.

如前所述，我們對我們的戰略舉措所取得的成功感到非常高興。然而，包括消費受限和行業庫存過剩在內的宏觀壓力導致 10 月最後兩週的需求下降。我們預計類似的動態會持續存在，因此，我們認為修改全年指引是謹慎的做法。

Given the challenging macro environment, we continue to closely manage our business and our cost in a strategic and effective manner. We are cutting investments where prudent in the near term to better assess the longevity of this macro pressure, but also want to remain cognizant of the critical growth we want to continue in our Owned Brands business and retaining our top talent in this hypercompetitive labor market.

鑑於充滿挑戰的宏觀環境，我們繼續以戰略性和有效的方式密切管理我們的業務和成本。我們正在削減短期內謹慎的投資，以更好地評估這種宏觀壓力的持續時間，但也希望繼續認識到我們希望在自有品牌業務中繼續實現關鍵增長，並在這個競爭異常激烈的勞動力市場中留住我們的頂尖人才。

With all of this as a backdrop, we are revising our full year guidance as follows. Retail comp sales growth is still anticipated to come in, in the mid-single digits, but is now projected at the lower end of that range. Non-DBI wholesale growth is expected to be 20% to 30% over last year, and adjusted EPS is now expected to be $1.75 to $1.80 for the full year, actually squarely in line with our initial 2022 guidance of $1.75 to $1.85 we issued at the beginning of the year.

以所有這些為背景，我們正在修訂我們的全年指導如下。預計零售銷售增長仍將以中等個位數增長，但現在預計將處於該範圍的下限。非 DBI 批發增長預計比去年增長 20% 至 30%，調整後的全年每股收益現在預計為 1.75 美元至 1.80 美元，實際上與我們在年初。

We continue to be very proud of the structural changes we have made in our business that allow us to better perform even when these macro pressures arise. As a comparison, 2019 saw sales actually a bit higher for total DBI than what this revised guidance would imply, but adjusted EPS in 2019 was only $1.47. With the meaningful growth in our owned brands sales, the growth in athletic and top 50 national brands, which require less discounting, and our digitally focused and targeted approach to marketing at our retail business replacing the broad-based direct mail discounts of the past, we continue to see sustained leverage in our gross profit rate versus 2019.

我們繼續為我們在業務中所做的結構性變化感到自豪，這些變化使我們即使在這些宏觀壓力出現時也能表現得更好。相比之下，2019 年總 DBI 的銷售額實際上略高於修訂後的指引所暗示的水平，但 2019 年調整後的每股收益僅為 1.47 美元。隨著我們自有品牌銷售額的顯著增長，需要更少折扣的運動品牌和前 50 名全國品牌的增長，以及我們以數字為中心和有針對性的零售業務營銷方法取代了過去廣泛的直郵摺扣，與 2019 年相比，我們繼續看到毛利率的持續槓桿作用。

And this sustained margin profile change, along with our more strategically diversified revenue or profit streams across more meaningful business segments, keeps me excited about what this means for Designer Brands as we move past these macro issues and continue to make meaningful progress towards our long-term strategic plans. As we navigate this challenging environment, we will continue to lean on our strategic pillars being adaptable, nimble and utilizing our DTC infrastructure to move inventory and grow owned brands.

這種持續的利潤率變化，以及我們在更有意義的業務部門的更具戰略性的多元化收入或利潤流，讓我對這對 Designer Brands 意味著什麼感到興奮，因為我們已經克服了這些宏觀問題，並繼續朝著我們的長期目標取得有意義的進展。長期戰略計劃。在我們應對這個充滿挑戰的環境時，我們將繼續依靠我們的戰略支柱適應性強、靈活，並利用我們的 DTC 基礎設施來轉移庫存和發展自有品牌。

With that, we will open the call for questions. Operator?

有了這個，我們將打開問題的電話。操作員？

(Operator Instructions) Our first question comes from Jay Sole from UBS.

（操作員說明）我們的第一個問題來自瑞銀的 Jay Sole。

Roger, if you could just talk about the changes that you've seen in the competitive environment, consumer behavior into the fourth quarter. Maybe just tell us a little bit more about sort of like the gross margin change in 4Q that's leading to the change in the guidance for the full year and sort of what you expect in the fourth quarter relative to third quarter? Do you think the fourth quarter will be a little bit more competitive than what you've seen so far? Or do you see they're about the same? Or do you see maybe getting a little bit better?

羅傑，如果你能談談你在競爭環境中看到的變化，消費者行為進入第四季度。也許只是告訴我們更多關於第四季度毛利率變化導致全年指導變化的信息，以及您對第四季度相對於第三季度的預期？你認為第四季度會比你目前看到的更具競爭力嗎？或者你看到他們差不多了嗎？或者你看到可能會好一點嗎？

Thanks, Jay. And I think there are 2 major macro trends that we've experienced throughout Q3 that we are clearly, I think, with our guidance showing that that's our expectation that those trends will continue into Q4. And that is when you look at how the consumer is responding, they're looking for value. And obviously, inflation has been a big driver of that, and Doug can talk to this. But our DSW clearance business, which was planned to be up in a material way, it posted a 28% comp. The customer is voting that they want value pass. So that's number one.

謝謝，傑伊。而且我認為我們在整個第三季度經歷了 2 個主要的宏觀趨勢，我認為我們很清楚，我們的指導表明我們期望這些趨勢將持續到第四季度。那就是當您查看消費者的反應時，他們正在尋找價值。很明顯，通貨膨脹是其中的一個重要推動因素，道格可以談談這一點。但我們的 DSW 清關業務計劃以實質性方式增長，它發布了 28% 的補償。客戶正在投票表示他們想要傳遞價值。所以這是第一。

And then the second one is just the amount of excess inventory that we see, again, what's out in the market and the amount of items being sold into the secondary goods market. And obviously, we play there and trying to sell things to some of those people. And when you see what offers are being given on product you have, it's clear there is excess inventory. And I'm quoting -- I'm not quoting them directionally from the things that we get. When you look at the 3 big athletic players, the Swoosh folks up over 60%, SKECHERS up over 40%, adidas up over 50% in inventory. Those goods are being pumped into the market. And with their direct-to-consumer plays, that puts pressure on that athletic category in particular. So those are the 2 big things that we have seen happen, and we don't see that slowing down as we go through Q4.

然後第二個就是我們再次看到的過剩庫存量，市場上有什麼以及出售到二手商品市場的商品數量。顯然，我們在那裡打球，並試圖向其中一些人推銷東西。當您看到您所擁有的產品提供了哪些報價時，很明顯庫存過剩。我在引用——我不是從我們得到的東西中定向引用它們。當您查看三大運動型球員時，Swoosh 的庫存增加了 60% 以上，SKECHERS 的庫存增加了 40% 以上，adidas 的庫存增加了 50% 以上。這些商品正被注入市場。通過他們直接面向消費者的遊戲，這尤其給體育類別帶來了壓力。因此，這些是我們已經看到的兩件大事，而且在我們經歷第四季度時我們沒有看到這種情況放緩。

Got it. And then -- and maybe if you can just talk about the slowdown that happened in the second half of October and the first half of November, there's some discussion if it was weather-related, maybe the election was distracting to people. Perhaps the comparison were pretty tough from last year because of the pull forward that happened because of the supply chain issues of the Omicron. Do you think that that's been -- that's really the reason that we've seen a slowdown? Or is it more the consumer is weakening because of inflation? I mean where do you stand on that?

知道了。然後——也許如果你能談談 10 月下半月和 11 月上半月發生的經濟放緩，有一些討論是否與天氣有關，也許選舉分散了人們的注意力。也許與去年相比比較艱難，因為 Omicron 的供應鏈問題導致了向前推進。你認為那是——這真的是我們看到經濟放緩的原因嗎？還是消費者因通貨膨脹而疲軟？我的意思是你的立場是什麼？

I think we don't really allow our team to talk about weather. But whenever you look at how our business performed, and our sandal business was really strong in Q3. Boots achieved our goals, but it was still a negative comp for the quarter. So our sandal business was really good. So there was some weather. But at the end of the day, it comes back to those 2 things I mentioned. The customer is clearly voting. They're looking for value, and we're seeing it in how they're -- what they're buying from us. And then the second piece is there is just a lot of inventory that's out in the market that is, frankly, competitive because those brands are competing with us through their DTC channels.

我認為我們真的不允許我們的團隊談論天氣。但無論何時你看看我們的業務表現如何，我們的涼鞋業務在第三季度真的很強勁。 Boots 實現了我們的目標，但它在本季度的表現仍然不佳。所以我們的涼鞋生意真的很好。所以有一些天氣。但歸根結底，它又回到了我提到的那兩件事上。客戶顯然在投票。他們正在尋找價值，而我們正在從他們的方式中看到這一點——他們從我們這裡購買的東西。然後第二點是市場上有很多庫存，坦率地說，這是有競爭力的，因為這些品牌通過他們的 DTC 渠道與我們競爭。

(Operator Instructions) Our next question comes from Gaby Carbone from Deutsche Bank.

（操作員說明）我們的下一個問題來自德意志銀行的 Gaby Carbone。

I just wanted to circle back to that clearance customer again that's been coming back into your stores. Just curious if you can dig into how that's impacting traffic and units per transaction.

我只是想再次回到那個已經回到你商店的清倉客戶。只是好奇您是否可以深入了解這如何影響每筆交易的流量和單位。

Gaby, this is Doug. Again, we had talked about the fact that this was an opportunity for us, obviously, with regards to regaining that clearance customer back. And as we said in the transcript, we had a 28% increase in clearance sales in the quarter. So again, that's actually a model that we can lean into.

蓋比，這是道格。再一次，我們談到了一個事實，這對我們來說顯然是一個機會，可以重新奪回清關客戶。正如我們在成績單中所說，本季度清倉銷售額增長了 28%。所以，這實際上是一個我們可以藉鑑的模型。

We definitely saw that accelerating as we move throughout the quarter. So to Roger's point, customers are definitely migrating more towards value. So there's favorability obviously in our model with regards to the clearance customer. And then the other thing that is a key differentiator, which I couldn't be more proud of, is the results that we have with our owned brands. So obviously, those can grow significant value. And those generated 22% of our overall volume at DSW in the quarter, and it was over a 30% increase. So those 2 factors, we believe, are going to be differentiators for us as we move forward because, again, the customer is clearly focusing on the value.

隨著我們在整個季度的發展，我們確實看到了這種加速。因此，就羅傑的觀點而言，客戶肯定會更多地轉向價值。因此，在我們的模型中，清倉客戶顯然有好感。然後，另一件關鍵的差異化因素是我們自有品牌的成果，我對此感到無比自豪。很明顯，這些可以增加巨大的價值。這些在本季度產生了 DSW 總銷量的 22%，增幅超過 30%。因此，我們相信，這兩個因素將成為我們前進的差異化因素，因為客戶再次明確關注價值。

Gaby, I think -- this is Roger. And I think even to Jay's question, if you think about what it is we do and how we respond to this, as Doug said, the big thing for us is lean into that clearance prop. So knowing that our customer comes to us, that's sort of rooted in who we are from day one, I think it's 1 more opportunity for us to pivot assortment and our thinking and leverage that as a way to compete and grow share.

加比，我想——這是羅傑。而且我認為即使是 Jay 的問題，如果你想想我們做了什麼以及我們如何回應，正如 Doug 所說，對我們來說最重要的是依靠那個許可支持。因此，知道我們的客戶來找我們，這從第一天起就植根於我們的身份，我認為這對我們來說是一個更多的機會來調整分類和我們的思維，並利用它作為競爭和增加份額的一種方式。

And then obviously, leveraging all of our owned brands, especially the ones that are exclusive to DSW, as a way to continue to pass value to the customer and, to Doug's point in the script, where we're talking about our owned brands growing at 25% year-over-year, I mean that's just remarkable. And that's been our game plan for the last 3 years, and it's continuing to work. But the competitive landscape is different and that we're going to keep leaning into those things that we've been doing now for the last 3 years.

然後很明顯，利用我們所有的自有品牌，尤其是 DSW 獨有的品牌，以此作為繼續向客戶傳遞價值的一種方式，正如道格在劇本中所說的那樣，我們正在談論自有品牌的增長同比增長 25%，我的意思是這非常了不起。這一直是我們過去 3 年的遊戲計劃，而且它正在繼續發揮作用。但競爭格局不同，我們將繼續專注於過去 3 年我們一直在做的事情。

I just had a quick follow-up. I just was wondering if you can discuss how you're planning maybe your brand portfolio outside of DSW over the next couple of quarters as we're continuing to see retailers play inventory pretty conservatively for next year?

我剛剛進行了快速跟進。我只是想知道您是否可以討論在接下來的幾個季度中您如何計劃您在 DSW 之外的品牌組合，因為我們將繼續看到零售商在明年相當保守地玩庫存？

Yes. I mean I don't want to get into the forward-facing view until we give you some guidance for next year. But yes, I mean we -- what we do know is that if you're more conservative in your inventory plans, you always have the ability to chase upside. And right now, we're dealing with the pain of the industry being over-inventoried, and we will not let that happen. And I think we have a history and tradition of managing our inventories in a pretty tight manner, and that's our approach as we move forward as we will be much more conservative, I would say, in how we're approaching our inventory positions, specifically as we look at what we're going to sell outside of our core DSW business and Shoe Company businesses.

是的。我的意思是，在我們為明年提供一些指導之前，我不想進入前瞻性觀點。但是，是的，我的意思是我們——我們所知道的是，如果你在你的庫存計劃中更加保守，你總是有能力追逐上行空間。而現在，我們正在應對行業庫存過多的痛苦，我們不會讓這種情況發生。而且我認為我們有以非常嚴格的方式管理我們的庫存的歷史和傳統，這是我們前進的方法，因為我們將更加保守，我會說，在我們如何接近我們的庫存位置，特別是當我們審視我們將在核心 DSW 業務和鞋業公司業務之外銷售的產品時。

This concludes our question-and-answer session. I would like to turn the conference back over to Roger Rawlins for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給 Roger Rawlins，聽取任何閉幕詞。

Thanks, everybody, for listening. I know we have a lot of associates, and I just want to recap. If you think about the big things you accomplished this quarter of growing your top line by 3%, and that's on top of -- remember, last year, we grew our business by 41%. So there's not a lot of folks I see out there in our space that had those kind of results for the third quarter. .

謝謝大家的聆聽。我知道我們有很多同事，我只想回顧一下。如果你想想本季度你完成的大事，即你的收入增長了 3%，那是最重要的——記住，去年，我們的業務增長了 41%。因此，我在我們的領域看到的人中沒有很多人在第三季度取得了這樣的結果。 .

You grew our owned brands, meaning the things that we own and control by 25%, it penetrated at 27% versus 22% last year, remarkable. Then you add into that our direct-to-consumer channels that grew by 33%, our gross margin rate up 370 bps to where we were in 2019. And then just the amazing progress that Mary, [Joe] and Nancy and the whole team up in Canada have demonstrated growing 19% and grabbing huge market share. The strategies we've put in place over the last 4 or 5 years are working. And just keep doing what you're doing, and I can't thank you enough, and hope everybody has fantastic holidays. Talk to you soon.

你發展了我們的自有品牌，這意味著我們擁有和控制的東西增加了 25%，滲透率為 27%，而去年為 22%，非常了不起。然後再加上我們的直接面向消費者的渠道增長了 33%，我們的毛利率比 2019 年增長了 370 個基點。然後就是 Mary、[Joe] 和 Nancy 以及整個團隊取得的驚人進步up 在加拿大已經證明增長了 19% 並佔據了巨大的市場份額。我們在過去 4 或 5 年中實施的策略正在發揮作用。繼續做你正在做的事，我對你感激不盡，希望每個人都有一個美好的假期。以後再聊。

Thank you.

謝謝你。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。