Item 7.01 Regulation FD Disclosure.
On July 30, 2020, Designer Brands Inc. (the "Company") announced additional
actions to address the impact of the COVID-19 pandemic. Effective immediately,
the Company is conducting an internal reorganization and reducing its workforce.
The Company anticipates that the reorganization and reduction in workforce will
impact over 1,000 associate positions in total, which represents approximately
8% of the Company's North American associate positions. As part of the reduction
in workforce, the Company will be eliminating approximately 380 corporate office
associate positions (including approximately 140 vacant positions that will not
be filled), representing approximately 22% of all North American corporate
office associate positions. The reduction in workforce will also eliminate over
700 store associate positions (including approximately 80 vacant positions that
will not be filled), representing approximately 7% of all store associate
positions. The Company expects that over 550 store associates will be given the
opportunity to remain with the Company in a different role within the new
organizational structure or they may choose to accept severance.
The Company anticipates that these actions will result in a cost savings to the
Company of approximately $40 million annually, net of planned reinvestments in
the business (estimated on an annualized basis based on the pre-reduction
compensation of the affected associates). The Company does not expect to incur
material charges in connection with the reduction in workforce.
The Company is furnishing the information in this Item 7.01 to comply with
Regulation FD. Such information shall not be deemed to be "filed" for purposes
of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise
subject to the liabilities of that section, and shall not be deemed to be
incorporated by reference into any of the Company's filings under the Securities
Act of 1933, as amended, whether made before or after the date hereof and
regardless of any general incorporation language in such filings, except to the
extent expressly set forth by specific reference in such a filing. This Item
7.01 will not be deemed an admission as to the materiality of any information
herein that is required to be disclosed solely by Regulation FD.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this Form 8-K 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 latest Annual Report
on Form 10-K and other filings with the Securities and Exchange Commission,
including the sections entitled "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" contained therein.
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 Form 8-K include,
without limitation, statements regarding the results or effectiveness of the
internal reorganization and reduction in workforce, including, but not limited
to the cost savings associated therewith. 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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Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Designer Brands Inc.
By: /s/ Michelle C. Krall
Michelle C. Krall
Senior Vice President, General Counsel and Secretary
Date: July 30, 2020
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