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Designer Brands Inc. Class A (DBI) has submitted its 10-K filing for the fiscal year ended February 1, 2025.
The filing includes financial statements for the year, showing a decrease in net sales to $3.0 billion from $3.1 billion in the previous year. The decrease is attributed to lower sales in the U.S. Retail segment and the impact of an additional week of sales in the previous year.
Gross profit as a percentage of net sales decreased to 42.7% from 43.1% in the previous year, primarily due to a change in product mix with an expansion in athletic and casual offerings.
The company reported a net loss attributable to Designer Brands Inc. of $10.5 million, or $0.20 loss per diluted share, compared to net income of $29.1 million, or $0.46 earnings per diluted share, in the previous year.
Operating expenses decreased slightly to $1.25 billion from $1.26 billion, with reductions in personnel overhead costs, store selling expenses, and distribution costs.
The Brand Portfolio segment saw an increase in net sales due to a change in sourcing certain Owned Brands for the U.S. Retail segment under a wholesale model.
Interest expense increased to $45.3 million from $32.2 million, driven by a higher debt balance.
The effective tax rate was 7.0%, compared to 27.3% in the previous year, affected by non-deductible compensation and other adjustments.
Cash provided by operating activities was $82.2 million, while cash used in investing and financing activities was $62.7 million and $22.1 million, respectively.
Designer Brands had a working capital of $144.5 million as of February 1, 2025. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various acquisitions, including the purchase of Rubino Shoes Inc., and changes in distribution facilities.
Designer Brands continues to focus on growing its Brand Portfolio segment and enhancing its omni-channel capabilities.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Designer Brands Inc. Class A annual 10-K report dated March 24, 2025. To report an error, please email earnings@qz.com.