The move follows Designer Brands\u2019 strategy to expand its owned brands portfolio.<\/li>\n<\/ul>\nDive Insight:<\/h3>\n
The acquisition of Topo Athletics will help Designer Brands grow its private label and owned brand penetration and its assortment within the running category.<\/p>\n
In its most recent earnings, Designer Brands said owned brand sales grew 25% year over year. That follows 68% year-over-year revenue growth in owned brands earlier this year.\u00a0Designer Brands also reported that third-quarter net sales increased 1.4% to $865 million, gross profit decreased to $285.8 million from $313.6 million last year and net income was $45.2 million. The company reported $415.5 million in debt at the close of Q3 versus $227.9 million last year.<\/p>\n
Designer Brands explained in a statement that the company has guaranteed access to owned brands for a set period. Some are owned outright, while others are available through licensing agreements.<\/p>\n
\u201cDesigner 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,\u201d Jordan said.\u00a0\u201cFollowing 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.\u201d<\/p>\n
Private labels lend the potential to improve margins for retailers. The company earlier this year said building out its portfolio of brands\u00a0\u201callows us to control our own destiny with access to the brands our customers love.\u201d<\/p>\n
DSW joins other retailers\u00a0\u2013 Target and Macy\u2019s among them \u2013 in pursuing a private label strategy.<\/p>\n
For Topo\u2019s part, the acquisition provides the brand access to additional resources.<\/p>\n
\u201cNothing really changes in our strategy, distribution direction or the management team,\u201d Post said in a statement. \u201cDesigner 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.\u201d<\/p>\n
Before starting Topo, Post was senior vice president of product and marketing at The Rockport Company. He also served as CEO of Vibram USA and launched Vibram FiveFingers minimalist shoes.<\/p>\n
In addition to Topo, the Designer Brands owned brands portfolio includes Jessica Simpson, Crown Vintage, Mix No. 6, Lucky Brand and Kelly & Katie. Designer Brands acquired LeTigre this summer.\u00a0<\/p>\n<\/p><\/div>\n
![\"Retail](\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\")
<\/a><\/p>
<\/p>\n","protected":false},"excerpt":{"rendered":"Listen to the article 3 min This audio is auto-generated. Please let us know if you have feedback. Dive Brief: Designer Brands, the parent company […]<\/p>\n","protected":false},"author":1,"featured_media":8125,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-8124","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/8124","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/comments?post=8124"}],"version-history":[{"count":0,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/8124\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media\/8125"}],"wp:attachment":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media?parent=8124"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/categories?post=8124"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/tags?post=8124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}