DSW parent company lays out plan to double owned-brand sales by 2026

Owned brands are having a moment, and DSW parent company Designer Brands wants to step up.

The company laid out a five-year financial plan on Friday, in which it aims to hit $4 billion in annual revenue and a gross profit of 35%—all by fiscal 2026.

• To reach that goal, Designer Brands is counting on doubling the 19% of total revenue it currently derives from its owned brands to nearly one-third—mainly through DTC channels including DSW and The Shoe Company.

The company previously noted its owned-brand sales in Q4 increased 69% YoY, while private-label sales via DTC channels grew 98% YoY. “We needed to get in more control of our destiny,” Designer Brands CFO Jared Poff told Footwear News. “Not just be a retailer of other people’s brands, but truly be a brand builder.”

Zoom out: Designer Brands is not alone in seeing the value of selling directly to consumers—especially as companies like Nike have also accelerated their shift toward DTC and cut down on business with wholesale partners. Under Armour has also been rethinking its wholesale channels, while Adidas is counting on DTC making up 50% of its sales by 2025.—JS