Form 4: Designer Brands Inc. Executive Chairman Jay L. Schottenstein Reports Changes in Beneficial Ownership

Jay L. Schottenstein, Executive Chairman of Designer Brands Inc., reports changes in beneficial ownership of Class A Common Shares due to dividend equivalent rights and restricted stock unit exercises.

Summary

• On March 23, 2024, Jay L. Schottenstein, the Executive Chairman of Designer Brands Inc., reported changes in his beneficial ownership of the company's Class A Common Shares.
• These changes resulted from the exercise of dividend equivalent rights and restricted stock units (RSUs).
• Specifically, 168,507 Class A Common Shares were acquired at a price of $0.00 due to the exercise of dividend equivalent rights.
• Additionally, 54,488 Class A Common Shares were disposed of at a price of $11.22.
• Following these transactions, Schottenstein directly owns 1,238,516 Class A Common Shares.
• He also indirectly owns shares through various entities: Jubilee Limited Partnership (1,864,597 shares), Schottenstein RVI, LLC (629,524 shares), Trusts (186,668 shares), Schottenstein Realty LLC (1,273,099 shares), and Schottenstein SEI, LLC (236,528 shares).
• The report also details the exercise of 5,957 dividend equivalent rights and 162,550 restricted stock units, both resulting in the acquisition of Class A Common Shares.
• Katherine Alfano, Attorney-in-Fact, signed the report on March 26, 2024, under a Substitute Power of Attorney.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. The exercise of rights and RSUs is a positive sign, but the disposal of some shares tempers the overall sentiment.

Positives

• The exercise of dividend equivalent rights and RSUs indicates a belief in the company's future performance by the executive chairman.
• The continued significant ownership stake demonstrates a strong alignment of interests with other shareholders.

Negatives

• The disposal of 54,488 Class A Common Shares, although potentially for tax purposes, could be perceived negatively by some investors.

Risks

• Significant changes in insider ownership could create uncertainty among investors.
• Dependence on key personnel like Jay L. Schottenstein poses a risk if his involvement were to change.

Future Outlook

The document does not contain specific forward-looking statements, but the continued holding of a significant number of shares suggests a positive outlook from the reporting person.

Industry Context

Insider transactions are closely monitored in the retail industry to gauge management's confidence in the company's performance and strategic direction. This filing provides transparency into the executive chairman's holdings and recent transactions.

Comparison to Industry Standards

• Comparing insider transactions at Designer Brands Inc. to those of competitors like Foot Locker (FL) or DSW (DSW) can provide context.
• For example, if executives at Foot Locker are also exercising stock options and maintaining high ownership percentages, it could signal a positive trend in the broader footwear retail market.
• Conversely, if other companies are seeing significant insider selling, it could raise concerns about the industry's overall health.

Stakeholder Impact

• The transactions may have a minor impact on shareholder sentiment.
• Employees holding company stock may be interested in the executive chairman's transactions.

Key Dates