“The Edit” is coming to four DSW stores this fall.
Ranging from between 1,000 and 1,500 square feet, the spaces showcase key affordable luxury and elevated fashion brands.
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Douglas Howe, chief executive officer of DSW parent Designer Brands Inc., told investors during the company’s second quarter earnings conference call Thursday the plan is to use learnings from the pilot to evaluate customer response and understand how to evolve the concept going forward.
Howe, who said the aim was to deliver a more elevated experience, noted that the company has a unique business model combining its retail store operation with its brand portfolio’s wholesale component. That combination, he said, “gives us greater flexibility in how and where we distribute our products, creating diverse opportunities to drive growth and margin expansion as we remain excited by the long-term potential and value creation inherent to this business model.”
The brands — Topo Athletic, Keds, Vice Camuto, Jessica Simpson, Lucky Brand, and others — also provide Designer Brands‘ stores with differentiated product and greater control over the assortment mix.
Howe noted that Topo was the “standout with revenue growth of more than 24 percent during the quarter,” adding that the company expects the “brand to generate over $100 million in 2027.” Overall, the CEO said women’s dress shoes saw sales growth in the “high single digits.” That helped the Jessica Simpson line, which had an outstanding quarter with sales up 24 percent and “impressive growth across all major accounts as strength in dress continues to resonate with customers.”
Howe said that retail segment sales were down 2 percent due to softness in seasonal categories, with sandals the largest one that was pressured by early weather-related headwinds that “never fully recovered.” He noted that the athletic business was also softer in the second quarter, but that the company remained disciplined it its markdown cadence, adding that athletic demand improved sequentially by 400 basis points in August.
In addition to 523 DSW stores, the company also operates 118 The Shoe Co. doors, and 27 Rubino locations, giving it a total network of 668 sites. DSW stores in July celebrated 35 years in operation.
And going into the third quarter, the CEO said the company is seeing “encouraging trends in both dress and boots” quarter to date.
