Athletic and Digital Surge in Q2 for DSW
Designer Brands reported that DSW’s year-over-year athletic comps increased 90 percent in the period to generate 23 percent of the banner’s quarterly revenues, up from 17 percent in Q2/19. The gains were made amidst a 10 percent drop in store traffic and a 21 percent increase in digital orders. Meanwhile, year-to-date, DSW’s Top 50 brands have generated 78 percent of revenues versus 40 percent a few years ago.
Of the potential challenges of getting inventory from brands, CEO Roger L. Rawlins told analysts, “When you’re running 112 percent increases in your top 50 brands, you’d hope you can have a conversation with those leaders and say, ‘Hey, can you please make certain we get our fair share of products?’”
Rawlins also pointed to Designer Brands’ ability to design and source its own goods and noted that overall the company has demonstrated over the last 24 months an “ability to be nimble on our feet” and that he expects much of the same in H2.
In H1, Designer Brands had a $5-6 million in higher freight costs, a figure that is projected to more than double in H2 due to supply chain issues.