Designer Brands Inc.DBI
Designer Brands Inc. Segments Disclosure
SEGMENT REPORTING
Our two reportable segments are the Retail segment and the Brand Portfolio segment. Beginning with this 2025 Annual Report on Form 10-K, we aggregated our previously reported U.S. Retail operating segment and Canada Retail operating segment into a single reportable segment, the Retail segment, due to the similar nature of their operations and economic characteristics. All prior period segment information has been recast to conform to the current reporting segment presentation. We have determined that the Chief Operating Decision Maker ("CODM") is our CEO and we have identified such segments based on internal management reporting and responsibilities. The CODM uses segment operating profit (loss) predominantly in the annual budget and projection process and for considering variances with actual results when assessing performance and making decisions about the allocation of resources to each segment. Total assets by segment are not presented in the table below as the CODM does not evaluate, manage, or measure performance of segments using total assets.
The following table provides certain financial data by segment reconciled to the consolidated financial statements:
| (in thousands) | Retail | Brand Portfolio | Total | ||||||||||||||
| 2025 | |||||||||||||||||
| Net sales: | |||||||||||||||||
| External customer sales | $ | 2,656,809 | $ | 235,862 | $ | 2,892,671 | |||||||||||
| Intersegment sales | — | 126,999 | 126,999 | ||||||||||||||
| Segment net sales | 2,656,809 | 362,861 | 3,019,670 | ||||||||||||||
| Elimination of intersegment net sales | (126,999) | ||||||||||||||||
| Consolidated net sales | $ | 2,892,671 | |||||||||||||||
| Less segment expenses: | |||||||||||||||||
| Cost of sales, exclusive of expenses shown below | (1,504,104) | (260,070) | |||||||||||||||
| Store selling expenses | (339,954) | — | |||||||||||||||
| Occupancy costs | (302,001) | (4,742) | |||||||||||||||
| Marketing | (149,034) | (14,640) | |||||||||||||||
| Distribution and fulfillment costs | (53,440) | (12,603) | |||||||||||||||
| Personnel overhead costs | (52,238) | (45,504) | |||||||||||||||
| Depreciation and amortization | (36,876) | (7,122) | |||||||||||||||
Other expense items(1) | (7,610) | (18,298) | |||||||||||||||
| Plus income from equity investments | — | 11,026 | |||||||||||||||
| Segment operating profit | $ | 211,552 | $ | 10,908 | 222,460 | ||||||||||||
| Net recognition of intersegment activity | 4,894 | ||||||||||||||||
Corporate shared services costs(2) | (175,171) | ||||||||||||||||
Impairment charges(2) | (4,419) | ||||||||||||||||
| Consolidated operating profit | 47,764 | ||||||||||||||||
| Interest expense, net | (45,338) | ||||||||||||||||
| Non-operating expenses, net | (192) | ||||||||||||||||
| Income before income taxes and loss from equity investment | $ | 2,234 | |||||||||||||||
| Cash paid for segment property and equipment | $ | 26,429 | $ | 2,038 | $ | 28,467 | |||||||||||
| (in thousands) | Retail | Brand Portfolio | Total | ||||||||||||||
| 2024 | |||||||||||||||||
| Net sales: | |||||||||||||||||
| External customer sales | $ | 2,749,124 | $ | 260,138 | $ | 3,009,262 | |||||||||||
| Intersegment sales | — | 138,743 | 138,743 | ||||||||||||||
| Segment net sales | 2,749,124 | 398,881 | 3,148,005 | ||||||||||||||
| Elimination of intersegment net sales | (138,743) | ||||||||||||||||
| Consolidated net sales | $ | 3,009,262 | |||||||||||||||
| Less segment expenses: | |||||||||||||||||
| Cost of sales, exclusive of expenses shown below | (1,562,896) | (289,067) | |||||||||||||||
| Store selling expenses | (346,756) | — | |||||||||||||||
| Occupancy costs | (298,645) | (6,021) | |||||||||||||||
| Marketing | (149,712) | (23,251) | |||||||||||||||
| Distribution and fulfillment costs | (45,785) | (13,452) | |||||||||||||||
| Personnel overhead costs | (52,078) | (49,949) | |||||||||||||||
| Depreciation and amortization | (36,468) | (6,811) | |||||||||||||||
Other expense items(1) | (7,342) | (20,250) | |||||||||||||||
| Plus income from equity investments | — | 13,145 | |||||||||||||||
| Segment operating profit | $ | 249,442 | $ | 3,225 | 252,667 | ||||||||||||
| Net elimination of intersegment activity | (10,084) | ||||||||||||||||
Corporate shared services costs(2) | (189,314) | ||||||||||||||||
Impairment charges(2) | (18,336) | ||||||||||||||||
| Consolidated operating profit | 34,933 | ||||||||||||||||
| Interest expense, net | (45,291) | ||||||||||||||||
| Non-operating expenses, net | (372) | ||||||||||||||||
| Loss before income taxes | $ | (10,730) | |||||||||||||||
| Cash paid for segment property and equipment | $ | 31,911 | $ | 2,414 | $ | 34,325 | |||||||||||
| (in thousands) | Retail | Brand Portfolio | Total | ||||||||||||||
| 2023 | |||||||||||||||||
| Net sales: | |||||||||||||||||
| External customer sales | $ | 2,798,078 | $ | 276,898 | $ | 3,074,976 | |||||||||||
| Intersegment sales | — | 72,078 | 72,078 | ||||||||||||||
| Segment net sales | 2,798,078 | 348,976 | 3,147,054 | ||||||||||||||
| Elimination of intersegment net sales | (72,078) | ||||||||||||||||
| Consolidated net sales | $ | 3,074,976 | |||||||||||||||
| Less segment expenses: | |||||||||||||||||
| Cost of sales, exclusive of expenses shown below | (1,569,909) | (256,431) | |||||||||||||||
| Store selling expenses | (347,283) | — | |||||||||||||||
| Occupancy costs | (296,686) | (7,714) | |||||||||||||||
| Marketing | (148,376) | (27,987) | |||||||||||||||
| Distribution and fulfillment costs | (48,523) | (15,308) | |||||||||||||||
| Personnel overhead costs | (58,350) | (47,669) | |||||||||||||||
| Depreciation and amortization | (33,428) | (7,811) | |||||||||||||||
Other expense items(1) | (9,216) | (22,169) | |||||||||||||||
| Plus income from equity investments | — | 9,390 | |||||||||||||||
| Segment operating profit (loss) | $ | 286,307 | $ | (26,723) | 259,584 | ||||||||||||
| Net recognition of intersegment activity | 3,281 | ||||||||||||||||
Corporate shared services costs(2) | (185,630) | ||||||||||||||||
Impairment charges(2) | (4,834) | ||||||||||||||||
| Consolidated operating profit | 72,401 | ||||||||||||||||
| Interest expense, net | (32,171) | ||||||||||||||||
| Non-operating expenses, net | (33) | ||||||||||||||||
| Income before income taxes | $ | 40,197 | |||||||||||||||
| Cash paid for segment property and equipment | $ | 33,696 | $ | 2,211 | $ | 35,907 | |||||||||||
(1) Other expense items include professional services fees, payment service fees, supplies, travel, and other administrative segment expenses.
(2) Corporate shared services costs and impairment charges are not attributed to any of our segments. Corporate shared services costs primarily relate to corporate administration, IT, finance, human resources, legal, real estate, and other shared services performing corporate-level activities. We also do not allocate amounts related to restructuring and integration charges (including severance) and acquisition-related costs.
The following table provides net sales by geography:
| (in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| United States | $ | 2,599,401 | $ | 2,709,443 | $ | 2,792,593 | |||||||||||
| Canada and other international | 293,270 | 299,819 | 282,383 | ||||||||||||||
| $ | 2,892,671 | $ | 3,009,262 | $ | 3,074,976 | ||||||||||||
Beginning in 2024, we changed how the Brand Portfolio segment sources certain exclusive brands for the Retail segment by transacting using a wholesale model, where intersegment net sales and cost of sales are recorded, whereas in 2023 we transacted on a commission model, where intersegment net sales were based on a percentage of product cost. This change resulted in an increase in Brand Portfolio intersegment net sales, cost of sales, and gross profit and a corresponding increase in the amount of eliminated intersegment net sales, cost of sales, and gross profit with no impact to consolidated net sales, cost of sales, and gross profit when comparing 2025 and 2024 to 2023.
As of January 31, 2026 and February 1, 2025, long-lived assets, consisting of property and equipment and leased assets, included $804.7 million and $837.6 million, respectively, in the U.S. and $84.0 million and $71.6 million, respectively, in Canada, with only an immaterial amount in other countries. No single customer accounted for 10% or more of consolidated total net sales. However, the Brand Portfolio segment has five customers that make up approximately 38% of its segment net sales, excluding intersegment net sales, and the loss of any or all of these customers could have a material adverse effect on the Brand Portfolio segment.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 30, 2026 | Showing above |
| 2025 | Mar 24, 2025 | |
| 2024 | Mar 25, 2024 | |
| 2023 | Mar 16, 2023 | |
| 2022 | Mar 21, 2022 | |
| 2021 | Mar 22, 2021 | |
| 2020 | May 1, 2020 | |
| 2019 | Mar 26, 2019 | |
| 2018 | Mar 23, 2018 | |
| 2017 | Mar 23, 2017 | |
| 2016 | Mar 24, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.