DSW Will Continue to Sell Nike Through End of 2021
While Nike will stop taking orders from DSW parent, Designer Brands, and its Canadian operations in September, DSW will be selling Nike through the end of this year. In reporting its first quarter results, Designer Brands senior management highlighted the banner’s ongoing athleisure strategy that focuses on an “active dialogue” with 50 top brands and downplayed the loss of Nike products that accounted for less than 5 percent of 2019 total sales and slightly more than 7 percent last year.
At the end of Q1, the 50 top brands represented 78 percent of DSW’s total revenues, higher than a goal of 75 percent and representing 50 percent growth from 2019. DBI says the top brands’ strategy enables DSW to maintain better in-stocks and be less promotional. The retailer projects nearly 55 percent of its Spring 2021 assortment is athleisure in nature, ahead of a 50 percent objective. In Q1, athleisure styles represented 58 percent of chain sales against 47 percent in Q1/20. Sales of athleisure products, which includes athletic and casual styles, rose 92 percent. Kids’ comps increased 78 percent year-over-year.
Anticipating surging consumer demand for seasonal styles, DSW is chasing product within its Camuto business, whose production will build in H2, and in the broader market. Fifteen of DSW’s top 25 selling items in Q1 were designed and sourced vertically by Designer Brands. In the fall, the JLO brand is being re-launched to join other exclusive labels at the retailer such as Kelly and Katie and Mix No. 6.