DSW Parent Designer Brands Wants to Double Sales by 2026

Footwear and accessories designer, producer and retailer Designer Brands is highlighting the importance of improving its speed and efficiency as part of its long-term growth strategy during its Investor Day event at the New York Stock Exchange (NYSE), according to a Friday (April 8) press release.

The footwear market is becoming increasingly competitive, and the DSW parent company said it is confident about its place in the space.

“We know our customers like our best friends, and [we] utilize the data, feedback and insights gleaned from our nearly 30 million loyalty members to efficiently design top quality product suited specifically for them and [engage] with them in innovative ways across any and all mediums they desire,” said Designer Brands CEO Roger Rawlins in the release. “Our nimble business model and agile team have the ability to pivot with our consumers’ preferences and meet them where they want to shop.”

Designer Brands is planning to double the sales of its brands by fiscal year 2026 by maintaining its relationships with its partners, who rely on the company’s omnichannel capabilities to assist them in its direct-to-consumer (D2C) pursuits, the release stated.

“Designer Brands’ mission to inspire self-expression is supported by our integrated organization, and this will meaningfully grow shareholder value over the long term,” Rawlins said in the release.

Designer Brands is targeting $4 billion in revenue, a 35% gross profit margin, 9% operating margin and $1 billion in cash generation from operating activities through Jan. 30, 2027 (fiscal year 2026).

That will come through doubling owned brands sales from 19% of the company’s total revenue to almost one-third of that total, mostly through Designer Brands’ D2C channels.

Earlier this week, sandal maker Birkenstock pushed retailers to pull similar styles from other brands off their shelves in their brick-and-mortar locations and online stores — and some have begun to comply with the request.

Read more: Birkenstock Pressures Retailers, Suppliers Not to Stock Look-Alike Shoes

Nordstrom and Zappos.com have pulled some of Birkenstock’s so-called “copycats,” sold by Mephisto, Naot, Freedom Moses and Viking Sandals, drawing the ire of the affected retailers.