Designer Brands Inc. (NYSE:DBI) Q4 2023 Earnings Conference Call March 21, 2024 8:00 AM ET

Company Participants

Dustin Hauenstein - SVP of Finance
Doug Howe - CEO
Jared Poff - CFO

Conference Call Participants

Mauricio Serna - UBS
Dylan Carden - William Blair
Dana Telsey - Telsey Group

Operator

Good morning everyone, and welcome to the Designer Brands, Inc. Fourth Quarter 2023 Earnings Call. [Operator Instructions] Please also note, today's event is being recorded.

At this time, I'd like to turn the floor over to Dustin Hauenstein, SVP of Finance. Please go ahead.

Dustin Hauenstein

Good morning. Earlier today, the company issued a press release comparing results of operations for the 14-week and 53-week periods ended February 3, 2024 to the 13-week and 52-week periods ended January 28, 2023. Please note that the financial results that we will be referencing during the remainder of today's call exclude certain adjustments recorded under GAAP unless specified otherwise. For a complete reconciliation of GAAP to adjusted earnings, please reference our press release.

Additionally, please note that remarks made about future expectations, plans and prospects of the company constitutes forward-looking statements. Results may differ materially due to the 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.

Joining us today are Doug Howe, Chief Executive Officer; and Jared Poff, Chief Financial Officer.

Now, let me turn the call over to Doug.

Doug Howe

Thank you for joining us this morning.

I'd like to begin by recognizing all of our associates for their continued hard work and dedication to Designer Brands. They effectively executed on our priorities, quickly adapted inventory to shifting sales trends, and worked to manage spending levels amidst a challenging macroeconomic backdrop.

While we are pleased with where we ended the year, we fully recognize that we are not operating at our full potential. However, as we enter 2024, we do believe we have the right people and processes in place to move our strategy forward. This provides us with renewed confidence during what will be a transitional year as we begin to see the benefits of new leadership and simultaneously work to right-size our cost base in anticipation of future growth.

In fiscal 2023, we saw a 7.3% year-over-year decline in total sales, though we were still able to deliver EPS at the upper end of our guidance range. During the year, we saw industry weakness across the market. According to Circana, dollar sales in the footwear industry contracted year-over-year for both the fiscal third and fourth quarters consecutively; the first time we have seen a quarterly decline since 2020. This impacted us most within our U.S. retail and Canada retail segments as our footwear offerings are highly discretionary.