Latest Portfolio Addition Reinforces Successful
Brand-Building Strategy
COLUMBUS, Ohio, Dec. 19,
2022 /PRNewswire/ -- Designer Brands Inc. (NYSE: DBI)
(the "Company" and "Designer Brands"), one of the
world's largest designers, producers and retailers of footwear
and accessories, today announced the acquisition of Topo Athletic
("Topo"). The transaction expands the Company's reach into the
critical performance athletic and outdoor footwear categories.
Topo's founder and CEO, Tony Post,
will remain with the Company as CEO of Topo, and report to
Bill Jordan, president of Designer
Brands.
Topo, a footwear category disrupter known for its distinctive,
award-winning fit and feel, brings Designer Brands' Owned Brand
business immediately into the premium athletic category. Topo
footwear, designed for running, walking, hiking and overall
comfort, is already recognized in their category across the U.S.
and internationally. Led by founder Post, Topo is poised for
meaningful growth with top-tier product, reputation and
distribution already in place. Prior to starting Topo in 2012, Post
was senior vice president of product and marketing at The Rockport
Company, then served as CEO of Vibram USA, managing both the U.S. sole business and
launching Vibram FiveFingers. This vast experience and DNA for
innovation makes Topo such a strong fit for Designer Brands' own
innovative approach to growth. Topo further diversifies Designer
Brands' broader portfolio of Owned Brands, which includes Vince
Camuto, Jessica Simpson, Crown
Vintage, Mix No. 6, Lucky Brand and Kelly & Katie, comprising
six of the top 50 fashion brands at Designer Brands and will now
also grow in the hyper-important athletic and athleisure space with
Topo and the Company's previously announced LeTigre
acquisition.
"Topo represents another exciting growth opportunity for
Designer Brands and further propels us to our goal of doubling
sales of our Owned Brands by 2026," said Jordan. "Tony Post's visionary leadership reminds us why
the best athletic shoes must deliver a better experience, so our
customers become passionate about our brands. Designer Brands
continues to control its destiny with more than 30 million
customers in its loyalty programs, more than 700 points of
distribution and three online platforms that total more than
$1 billion in sales. Following our
most recent year-over-year quarterly sales increase of 25% in Owned
Brands and 33% within our Direct-to-Consumer channels, we are
confident Topo will continue to strengthen our Owned Brands
portfolio and help extend our reach around the world."
"Topo's focus on helping people achieve healthy lifestyle goals
aligns perfectly with Designer Brands' mission to inspire
self-expression," said Post. "We found synergy with their
management team from our first meeting. They understand our brand
mission, they support our strategy and focus around specialty
retail and they're excited about our growing global footprint.
Nothing really changes in our strategy, distribution direction or
the management team. Designer Brands brings a deep set of resources
that will help Topo continue to grow, innovate and deliver a better
experience for our customers for years to come."
The Consello Group served as financial advisor, and Porter Wright Morris & Arthur LLP served as
legal advisor to Designer Brands. Consensus served as financial
advisor, and Goodwin Procter served
as legal advisor to Topo.
About Designer Brands
Designer Brands is one of the world's largest designers,
producers and retailers of the most recognizable footwear brands
and accessories, transforming and defining the footwear industry by
inspiring self-expression across every facet of its enterprise.
Through its portfolio of world-class owned brands, led by the
industry-setting Vince Camuto brand, Designer Brands delivers
on-trend footwear and accessories through its robust
direct-to-consumer omni-channel infrastructure, featuring a
billion-dollar digital commerce business and nearly 650 stores
across the US and Canada. Its
retailing operations under the DSW Designer Shoe Warehouse and The
Shoe Company banners deliver current, in-line footwear and
accessories from most of the largest national brands in the
industry and hold leading market share positions in key product
categories across Women's, Men's and Kid's in the US and
Canada. Designer Brands also
distributes its owned brands through select wholesale relationships
while leveraging its design and sourcing expertise to build private
label product for national retailers. Designer Brands Inc. is also
committed to being a difference maker in the world, taking steps
forward to advance diversity, equity, and inclusion in the footwear
industry and supporting our global community and the health of our
planet through donating more than six million pairs of shoes to the
global non-profit Soles4Souls. More information can be found at
www.designerbrands.com.
About Topo Athletic
Topo Athletic creates footwear that honors the shape and
biomechanics of the human foot. Rising above the industry's
gimmicks and trends, Topo Athletic's products encourage instinctive
and natural movement to help deliver a better running and fitness
experience. Headquartered in Framingham,
MA, Topo was founded in 2012 by Tony
Post – an industry veteran with over 35 years of shoemaking,
marketing and competitive running experience. For more information,
please visit www.topoathletic.com and follow on Facebook,
Instagram and Twitter @topoathletic.
Safe Harbor Statement under the
Private Securities Litigation Reform Act of 1995
Certain statements in this press release may constitute
forward-looking statements and are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
You can identify these forward-looking statements by the use of
forward-looking words such as "outlook," "could," "believes,"
"expects," "potential," "continues," "may," "will," "should,"
"would," "seeks," "approximately," "predicts," "intends," "plans,"
"estimates," "anticipates," or the negative version of those words
or other comparable words. These statements are based on the
Company's current views and expectations and involve known and
unknown risks, uncertainties, and other factors that may cause
actual results, performance, or achievements to be materially
different from any future results, performance, or achievements
expressed or implied by the forward-looking statements. These
factors include, but are not limited to: our ability to
successfully integrate acquired businesses, such as Topo; risks and
uncertainties related to the ongoing coronavirus ("COVID-19")
pandemic, any future COVID-19 resurgence, and any other adverse
public health developments; risks that recent inflationary
pressures, including higher freight costs, could have on our
results of operations and customer demand based on pricing actions
and operating measures taken to mitigate the impact of inflation;
uncertain general economic conditions, including inflation and
supply chain pressures, domestic and global political and social
conditions and the potential impact of geopolitical turmoil or
conflict, and the related impacts to consumer discretionary
spending; our ability to execute on our long-term strategic plans;
our ability to anticipate and respond to fashion trends, consumer
preferences, and changing customer expectations; our ability to
maintain strong relationships with our vendors, manufacturers,
licensors, and retailer customers; risks related to losses or
disruptions associated with our distribution systems, including our
distribution centers and fulfillment center and stores, whether as
a result of the COVID-19 pandemic, reliance on third-party
providers, or otherwise; our reliance on our loyalty programs and
marketing to drive traffic, sales, and customer loyalty; risks
related to cyber security threats and privacy or data security
breaches or the potential loss or disruption of our information
systems; our ability to protect our reputation and to maintain
the brands we license; our competitiveness with respect to style,
price, brand availability, and customer service; risks related to
our international operations, including international trade, our
reliance on foreign sources for merchandise, exposure to political,
economic, operational, and compliance and other risks, and
fluctuations in foreign currency exchange rates; our ability to
comply with privacy laws and regulations, as well as other legal
obligations; risks associated with climate change and other
corporate responsibility issues; and uncertainties related to
future legislation, regulatory reform, policy changes, or
interpretive guidance on existing legislation. Risks and other
factors that could cause our actual results to differ materially
from our forward-looking statements are described in the Company's
Annual Report on Form 10-K for the fiscal year ended January
29, 2022 and in our other filings with the Securities and
Exchange Commission. All forward-looking statements speak only as
of the time when made. Except as may be required by law, the
Company undertakes no obligation to update or revise the
forward-looking statements included in this press release to
reflect any future events or circumstances.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/designer-brands-acquires-topo-athletic-accelerating-owned-brands-in-leading-shoe-sales-category-301705765.html
SOURCE Designer Brands Inc.