SCHEDULE 13G/A: Stone House Capital Management Boosts Stake in Designer Brands to 17.4%
Beneficial Ownership Report
Stone House Capital Management, along with SH Capital Partners and Mark Cohen, has reported a beneficial ownership of 17.4% in Designer Brands Inc., including shares acquirable through call options.
Summary
- Stone House Capital Management, LLC, SH Capital Partners, L.P., and Mark Cohen (collectively, the "Reporting Persons") have jointly filed an Amendment No. 3 to Schedule 13G.
- The filing reports their beneficial ownership of 7,000,000 Class A Common Shares of Designer Brands Inc. (the "Issuer").
- This aggregate amount represents 17.4% of the Issuer's Class A Common Shares outstanding.
- The reported ownership includes 1,500,000 Class A Common Shares that can be acquired within 60 days through the exercise of call options.
- The percentage is calculated based on 40,242,472 shares of Common Stock outstanding as of March 17, 2025, as disclosed in the Issuer's annual report on Form 10-K filed on March 24, 2025.
- The Reporting Persons certify that the securities were not acquired or held for the purpose of changing or influencing control of the Issuer, except for activities solely related to a nomination under Rule 14a-11.
Sentiment
Score: 5
Explanation: The document is a factual report of beneficial ownership and does not contain subjective language or performance metrics that would indicate a positive or negative sentiment. It is neutral in tone.
Future Outlook
The document does not provide any forward-looking statements or guidance regarding the Issuer's future performance or strategic direction. It solely reports beneficial ownership.
Industry Context
This filing indicates a significant passive investment by Stone House Capital Management in Designer Brands Inc., a company operating in the footwear and accessories retail sector. Such a substantial stake by an investment firm can signal confidence in the company's long-term prospects or a strategic positioning within the industry, though the filing explicitly states it is not for control purposes.
Stakeholder Impact
- Shareholders: The disclosure of a significant stake by an institutional investor like Stone House Capital Management could be perceived positively, potentially signaling confidence in the company's value or future, which might influence investor sentiment.
Key Dates
| Date | Description |
|---|---|
| 2024-09-17 | Date of initial Schedule 13G filing (Exhibit 99.1 Joint Filing Agreement incorporated by reference). |
| 2025-02-01 | End of fiscal year for Designer Brands Inc.'s annual report on Form 10-K. |
| 2025-03-17 | Date as of which 40,242,472 shares of Common Stock of Designer Brands Inc. were outstanding, as disclosed in the Issuer's 10-K. |
| 2025-03-24 | Date Designer Brands Inc. filed its annual report on Form 10-K for the fiscal year ended February 1, 2025, with the SEC. |
| 2025-03-31 | Date of event which requires the filing of this Schedule 13G Amendment No. 3. |
| 2025-05-15 | Signature date of the Schedule 13G Amendment No. 3 filing by the Reporting Persons. |
Keywords
Designer Brands Inc., Stone House Capital Management, SH Capital Partners, Mark Cohen, Beneficial Ownership, SEC Filing, Schedule 13G, Common Shares, Call Options, Investment Management, Footwear Retail, Apparel Retail
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