Latest news with #DesignerBrands
Yahoo
4 days ago
- Business
- Yahoo
Designer Brands, Tilly's, Gray Television, G-III, and Soho House Shares Are Soaring, What You Need To Know
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +1.5%, S&P 500 +1.0%) as reports pointed to easing tensions between Israel and Iran. The Wall Street Journal said senior Iranian officials had signaled a willingness to restart stalled nuclear talks, on the condition that Washington refrain from joining Israel's ongoing strikes. This development triggered a significant decline in oil prices, easing inflation concerns. Also, it is possible some investors were buying the dip following the sell-off at the end of the previous week. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Footwear Retailer company Designer Brands (NYSE:DBI) jumped 7.2%. Is now the time to buy Designer Brands? Access our full analysis report here, it's free. Apparel Retailer company Tilly's (NYSE:TLYS) jumped 5.2%. Is now the time to buy Tilly's? Access our full analysis report here, it's free. Broadcasting company Gray Television (NYSE:GTN) jumped 6.4%. Is now the time to buy Gray Television? Access our full analysis report here, it's free. Apparel and Accessories company G-III (NASDAQ:GIII) jumped 5.5%. Is now the time to buy G-III? Access our full analysis report here, it's free. Travel and Vacation Providers company Soho House (NYSE:SHCO) jumped 6.1%. Is now the time to buy Soho House? Access our full analysis report here, it's free. Designer Brands's shares are extremely volatile and have had 58 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 3 days ago when the stock dropped 7.3% after the major indices pulled back (Nasdaq -1.3%, S&P 500 -1.1%) as Israel carried out significant strikes on Iranian nuclear and military sites, dramatically escalating fears of a broader conflict in the Middle East. This development sent crude oil prices surging, as investors feared potential disruptions to global oil supply and a wider regional conflict. Designer Brands is down 54.3% since the beginning of the year, and at $2.42 per share, it is trading 70.3% below its 52-week high of $8.16 from July 2024. Investors who bought $1,000 worth of Designer Brands's shares 5 years ago would now be looking at an investment worth $301.73. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
New York Post
13-06-2025
- Business
- New York Post
Ex-hedge fund manager hit with insider trading charges again — 3 years after feds forced to drop case
A former Miami-based hedge fund manager was arrested on Friday after federal prosecutors revived an insider trading case they had been forced to drop in 2022 after a key witness withdrew from an agreement to testify against him. Federal prosecutors in Boston said Kris Bortnovsky, co-founder of Sakal Capital Management, earned over $4 million by placing illegal trades based on tips he received from among others a friend whose family held investments and leadership roles in retailers like DSW owner Designer Brands. That friend was David Schottenstein, a Florida entrepreneur who was sentenced to a year in prison in 2023 after admitting to his role in an insider trading scheme that had led to earlier charges against Bortnovsky and another man. Federal prosecutors in Boston said Kris Bortnovsky, co-founder of Sakal Capital Management, earned over $4 million by placing illegal trades based on tips he received. Getty Images Schottenstein had originally agreed to testify against them but subsequently backed out of his cooperation deal with authorities. Prosecutors then dropped their case against Bortnovsky and the other man in December 2022. Prosecutors reserved the right to bring the case again, saying their investigation was ongoing, and on Friday revealed they had obtained guilty pleas from three other individuals in recent months related to their involvement in the scheme. Friday's indictment charged Bortnovsky not just with securities fraud but also obstruction of justice, alleging he intimidated Schottenstein, identified in the indictment as 'CC-1,' in March 2022. The indictment alleged Bortnovsky while on bail followed Schottenstein into an orthodox synagogue he attended and, while wearing dark sunglasses, stared at Schottenstein with the intent to influence his testimony. Lawyers for Bortnovsky and Schottenstein did not respond to requests for comment. Prosecutors said that from 2017 to 2019, Bortnovsky conspired with others to trade on non-public information of DSW, now called Designer Brands, Aphria Inc. and Rite Aid. Colin Douglas Gray Prosecutors said that from 2017 to 2019, Bortnovsky conspired with Schottenstein and others to trade on non-public information regarding the earnings results and merger-and-acquisition activity of companies including DSW, now called Designer Brands; Aphria Inc; and Rite Aid. Prosecutors said Schottenstein passed along information he learned from a relative on the boards of DSW and Green Growth Brands, which pursued a failed bid to acquire Aphria. A Schottenstein family business was involved in a failed merger involving Rite Aid. The indictment said Bortnovsky also traded on information he received from another person about a private equity firm's potential acquisition of home décor retail chain At Home Group in 2017 and 2019 and the termination of those deal talks.
Yahoo
13-06-2025
- Business
- Yahoo
Former Florida hedge fund manager charged with insider trading, again
By Nate Raymond BOSTON (Reuters) -A former Miami-based hedge fund manager was arrested on Friday after federal prosecutors revived an insider trading case they had been forced to drop in 2022 after a key witness withdrew from an agreement to testify against him. Federal prosecutors in Boston said Kris Bortnovsky, co-founder of Sakal Capital Management, earned over $4 million by placing illegal trades based on tips he received from among others a friend whose family held investments and leadership roles in retailers like DSW owner Designer Brands. That friend was David Schottenstein, a Florida entrepreneur who was sentenced to a year in prison in 2023 after admitting to his role in an insider trading scheme that had led to earlier charges against Bortnovsky and another man. Schottenstein had originally agreed to testify against them but subsequently backed out of his cooperation deal with authorities. Prosecutors then dropped their case against Bortnovsky and the other man in December 2022. Prosecutors reserved the right to bring the case again, saying their investigation was ongoing, and on Friday revealed they had obtained guilty pleas from three other individuals in recent months related to their involvement in the scheme. Friday's indictment charged Bortnovsky not just with securities fraud but also obstruction of justice, alleging he intimidated Schottenstein, identified in the indictment as "CC-1," in March 2022. The indictment alleged Bortnovsky while on bail followed Schottenstein into an orthodox synagogue he attended and, while wearing dark sunglasses, stared at Schottenstein with the intent to influence his testimony. Lawyers for Bortnovsky and Schottenstein did not respond to requests for comment. Prosecutors said that from 2017 to 2019, Bortnovsky conspired with Schottenstein and others to trade on non-public information regarding the earnings results and merger-and-acquisition activity of companies including DSW, now called Designer Brands; Aphria Inc; and Rite Aid. Prosecutors said Schottenstein passed along information he learned from a relative on the boards of DSW and Green Growth Brands, which pursued a failed bid to acquire Aphria. A Schottenstein family business was involved in a failed merger involving Rite Aid. The indictment said Bortnovsky also traded on information he received from another person about a private equity firm's potential acquisition of home décor retail chain At Home Group in 2017 and 2019 and the termination of those deal talks.
Yahoo
11-06-2025
- Business
- Yahoo
DBI Q1 Earnings Call: Management Focuses on Cost Controls Amid Soft Consumer Demand
Footwear and accessories discount retailer Designer Brands (NYSE:DBI) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 8% year on year to $686.9 million. Its non-GAAP loss of $0.26 per share was significantly below analysts' consensus estimates. Is now the time to buy DBI? Find out in our full research report (it's free). Revenue: $686.9 million vs analyst estimates of $732.9 million (8% year-on-year decline, 6.3% miss) Adjusted EPS: -$0.26 vs analyst estimates of -$0.06 (significant miss) Adjusted EBITDA: $14.36 million vs analyst estimates of $32.05 million (2.1% margin, 55.2% miss) Operating Margin: -1.1%, down from 1.3% in the same quarter last year Locations: 669 at quarter end, down from 675 in the same quarter last year Same-Store Sales fell 7.8% year on year (-2.5% in the same quarter last year) Market Capitalization: $148.9 million Designer Brands' first quarter results were shaped by a challenging retail environment and weaker consumer sentiment, which pressured both store and digital traffic. CEO Doug Howe cited 'increased uncertainty and reduced planning visibility, particularly around consumer behavior,' leading to an 8% drop in comparable sales. Management attributed the softness in the U.S. and Canada to macroeconomic factors and unfavorable weather, particularly in February, which further dampened seasonal demand. The shift in consumer preferences toward value and heightened caution among discretionary shoppers forced the company to increase markdowns and adjust its approach to inventory and promotions. Howe noted that the team implemented a 6% reduction in operating expenses, with a broader plan to save $20 million to $30 million this year. Looking forward, Designer Brands withdrew its forward-looking guidance due to ongoing volatility and unpredictability in consumer demand. Management emphasized a near-term focus on cost controls, tariff mitigation, and enhancing the value proposition for customers. Howe stated, 'This volatility makes any future forecast highly unpredictable,' explaining the decision to refrain from providing projections. The company is prioritizing expense reductions, optimizing inventory levels, and diversifying sourcing to manage tariff impacts. Investments will continue in growth brands like Topo and Keds, which management believes are well-positioned even as discretionary spending remains under pressure. CFO Jared Poff highlighted ongoing efforts to 'operate the business as optimally as possible during this time,' with capital spending and inventory investments being tightly managed. Designer Brands' leadership attributed the quarter's results to persistent consumer softness, cost-cutting measures, and a strategic shift toward value and sourcing diversification. Consumer demand volatility: Management emphasized that lower store and online traffic reflected ongoing weakness in consumer sentiment, which was exacerbated by unfavorable weather early in the quarter and continued economic uncertainty for discretionary shoppers. Cost structure adjustments: The company implemented a 6% reduction in operating expenses for the quarter and expects $20 million to $30 million in annual savings as part of a broader cost management initiative in response to revenue pressures. Product assortment strategy: Designer Brands is reducing its choice count while increasing depth on key styles, prioritizing higher-converting products, and leveraging partnerships with top brands. This approach has shown improvement in store conversion rates and better inventory productivity, according to management. Brand performance divergence: While the overall Brand Portfolio segment saw lower sales, specific brands like Topo achieved 84% year-over-year growth, driven by expanded distribution and new product launches. Keds also improved gross margins by shifting production in-house and cleaning up excess inventory, despite top-line headwinds. Sourcing and tariff response: Management accelerated efforts to diversify sourcing away from China due to higher-than-anticipated tariffs, aiming for less than half of sourced products from China by year-end. They noted that only about 20% of products are directly sourced, limiting their ability to adjust for all categories. Management's outlook centers on continued cost control, sourcing diversification, and focusing investment on key growth brands amid consumer demand uncertainty. Tariff mitigation and sourcing shifts: Designer Brands is prioritizing diversification of its supplier base to reduce reliance on China, especially in anticipation of ongoing tariff pressures. Management expects less than half of all sourcing to come from China by the end of the year, which should help limit cost increases, though some categories—like dress footwear—remain more dependent on established Chinese suppliers. Expense discipline and capital allocation: The company aims to deliver $20 million to $30 million in expense savings this year, with further reductions in planned capital expenditures. CFO Jared Poff noted that every dollar of spend is being "highly scrutinized," and inventory investments are being managed for flexibility to respond quickly to demand shifts. Brand investment and product focus: Despite near-term headwinds, management is investing in brands like Topo and Keds, which are seen as long-term growth drivers with pricing power. The company will also relaunch its VIP Rewards program next year, aiming to deepen customer engagement and drive more targeted promotions, even as overall consumer sentiment remains volatile. In the coming quarters, the StockStory team will watch (1) whether cost reduction efforts yield sustained margin improvement, (2) the effectiveness of sourcing diversification in mitigating tariff and supply chain risks, and (3) further growth in brands like Topo and Keds. The relaunch of the VIP Rewards program and any stabilization in consumer demand will also be important milestones for tracking the company's recovery. Designer Brands currently trades at a forward P/E ratio of 12.2×. At this valuation, is it a buy or sell post earnings? See for yourself in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-06-2025
- Business
- Yahoo
Designer Brands Inc (DBI) Q1 2025 Earnings Call Highlights: Navigating Challenges with ...
Net Sales: $687 million, down 8% year-over-year. Comparable Sales: Declined 7.8% overall; US Retail comps down 7.3%, Canada Retail comps down 9.2%. Operating Expenses: Reduced by 6% for the quarter, with expected annual savings of $20 million to $30 million. Gross Margin: 43%, decreased by 120 basis points from the previous year. Adjusted Operating Income: Essentially breakeven compared to $14.7 million last year. Adjusted Net Loss: $12.5 million, or a loss of $0.26 per diluted share, compared to a gain of $4.8 million last year. Inventory: Up 0.5% year-over-year. Total Debt: $522.9 million at the end of the quarter. Cash and Liquidity: $46 million in cash, with total liquidity of $171.5 million. Topo Brand Sales: Increased by 84% year-over-year. Operating Expense Reduction: Brand Portfolio segment saw a 23% reduction in operating expenses. Warning! GuruFocus has detected 8 Warning Signs with DBI. Release Date: June 10, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Designer Brands Inc (NYSE:DBI) achieved two consecutive quarters of year-over-year adjusted operating income growth. The company implemented expense cuts resulting in a 6% reduction in operating expenses for the quarter. Topo brand showed impressive growth, with sales increasing by 84% year-over-year. The company is focusing on strategic partnerships and data-driven insights to optimize its product assortment. DBI is actively diversifying its sourcing to mitigate tariff impacts, expecting less than half of its sourcing to come from China by the end of the year. First quarter comparable sales declined by 8%, reflecting weakening consumer sentiment. US retail reported a 7.3% decline in comps and a 7.7% decline in total sales. Canadian sales declined by 2.9% with comps down 9.2%, affected by similar consumer sentiment issues as in the US. Consolidated gross margin decreased by nearly 120 basis points due to increased markdowns. The company withdrew its forward-looking guidance due to the highly volatile macro-environment. Q: Can you explain the relationship between the $20 million to $30 million in savings and the anticipated increase in SG&A expenses this year? A: Initially, we anticipated a $30 million headwind due to no bonus accrual for FY24. We started this year without a bonus accrual, providing about $10 million in favorability for Q1. However, we will face a headwind in Q3 due to last year's bonus reversal. Despite not providing guidance, we expect $20 million to $30 million in cuts below last year's SG&A for 2025. Q: Could you elaborate on the performance of the Canadian and brand portfolio segments, particularly regarding comps? A: In Canada, consumer sentiment mirrors the US, with volatility affecting comps. Rubino's addition caused some noise, but the sentiment remains similar. The brand portfolio saw mixed results; Topo grew 84%, while Keds faced top-line headwinds due to last year's liquidation but improved gross margins. Q: What trends are you seeing in Q2, and how are tariffs impacting your business? A: Q2 trends are similar to Q1's exit. Tariffs mainly affect consumer sentiment and volatility. Our brand portfolio team mitigated a potential $100 million gross profit pressure through negotiations and selective pricing. We're working with national brand partners to manage price increases while maintaining our IMU. Q: Can you provide insights into Topo's growth and expectations for 2025? A: Topo grew 84% in the quarter, driven by door expansion and new product launches. It's in 1,200 distribution points, and we expect this trend to continue. We're optimistic about its growth potential as we're just getting started with the brand. Q: How did the athletic wear segment perform in the US, and what are your expectations? A: Athletic and athleisure outperformed other categories, with DSW gaining market share in Q1. The top eight brands, mostly athletic, were flat in Q1, indicating strong relative performance. This aligns with our strategy over the past 18 months. Q: How are you planning for back-to-school and holiday seasons, and how are you navigating tariff mitigation? A: We're cautiously optimistic about back-to-school, with strong performance last year and buoyant kids' business. Inventory is well-managed, and the category is less affected by tariffs. For the holiday season, we're prepared to execute our playbook, focusing on gifting and marketing. Tariff mitigation involves diversifying sourcing and maintaining flexibility. Q: What are your strategies for mitigating tariff impacts, and how does it affect your sourcing? A: We accelerated diversification outside China, with options to reduce sourcing from China to 5%. However, China remains a stable and cost-effective supply chain for non-athletic footwear. Less than 20% of our products are directly controlled, so we work closely with partners on sourcing decisions. Q: How are you managing inventory and pricing in response to the current environment? A: We're closely monitoring inventory investments to align with demand and maintain flexibility. Pricing strategies involve maintaining IMU while working with brand partners to manage price increases. Our focus is on delivering value through inventory, pricing, and messaging. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
