COLUMBUS, Ohio, May 1, 2020 /PRNewswire/ -- Designer Brands Inc. (NYSE: DBI), one of North America's largest designers, producers and retailers of footwear and accessories, today announced the amendment of its $400 million revolving line of credit. This amendment, coupled with support received from vendor partners and landlords, helps to fortify the Company's near-term liquidity as it addresses the continuing impacts of COVID-19 and begins to reopen stores in select geographies.
As a result of the amendment, the Company is restricted from paying dividends and making share buybacks. Additionally, the amendment redefines the components for calculating the leverage ratio and fixed charge coverage ratio to adjust for certain temporary impacts due to COVID-19.
Chief Executive Officer Roger Rawlins, stated, "We are committed to preserving the long-term sustainability of our business during these unprecedented times, and these actions will provide greater financial flexibility and liquidity for our operations. We continue to leverage our strategic pillars of delivering differentiated products, offering differentiated experiences and focusing on new growth opportunities to serve our customers while navigating the COVID-19 pandemic."
Further details about the amendment to Designer Brands' revolving line of credit are included in the Company's Annual Report on Form 10-K filed with U.S. Securities and Exchange Commission ("SEC") on May 1, 2020.
About Designer Brands
Designer Brands is one of North America's largest designers, producers and retailers of footwear and accessories. The Company operates a portfolio of retail concepts in nearly 1,000 locations under the DSW Designer Shoe Warehouse®, The Shoe Company®, and Shoe Warehouse® banners and services footwear departments in the U.S. through its Affiliated Business Group. Designer Brands designs and produces footwear and accessories through Camuto Group, a leading manufacturer selling in more than 5,400 doors worldwide. Camuto Group owns licensing rights for the Jessica Simpson® footwear business, and footwear and handbag licenses for Lucky Brand® and Max Studio®. In partnership with a joint venture with Authentic Brands Group, Designer Brands also owns a stake in Vince Camuto®, Louise et Cie®, Sole Society®, CC Corso Como®, Enzo Angiolini® and others. More information can be found at www.designerbrands.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations and assumptions that involve risks and uncertainties and on information available to the Company as of the date hereof. The Company's actual results could differ materially from those stated or implied, due to risks and uncertainties associated with its business, which include the risk factors disclosed in its annual, quarterly and current reports, as filed with the SEC, including the impacts of the COVID-19 pandemic. Forward-looking statements include statements regarding the Company's expectations, beliefs, intentions or strategies regarding the future, and can be identified by forward-looking words such as "plans," "anticipate," "believe," "could," "continue," "estimate," "expect," "intend," "may," "should," "will" and "would" or similar words. Forward-looking statements in this press release include, without limitation, statements regarding the impact of COVID-19 on the Company's operations. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
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SOURCE Designer Brands Inc.