Leadership changes ahead as warm winter impacts Designer Brands
Unseasonably warm winter weather in the US reduced customer demand for shoes in the third quarter, according to Doug Howe, CEO of footwear retailer Designer Brands.
It reported 9% lower revenues for the three months to $786.3 million compared with the same period last year.
He said: “We saw improved performance in casual and clearance categories this quarter, but this was not enough to offset the broader lack of demand.
“While macro pressures notably impacted our business, we clearly recognize the need to operate with even greater speed and increase the level of innovation, newness, and fashion into our assortments, returning to our roots as a merchant organization and a fashion footwear retailer."
He added refreshment of the assortment, including new specialty sizes, and new marketing initiatives are tools it is using to reverse the decline.
“We have also made some difficult decisions regarding leadership across our organisation and believe that we are making progress in positioning our business well for the long-term while continuing to generate strong cash flow and ample liquidity," he said.
During the third quarter, the group opened one store in the US and six stores in Canada, resulting in a total of 499 US stores and 144 Canadian stores as of October 28, 2023.