Form 4: Stone House Capital Management, LLC Reports Beneficial Ownership Changes in Designer Brands Inc.

Stone House Capital Management, LLC, along with SH Capital Partners, L.P., and Mark Cohen, filed a Form 4 disclosing changes in beneficial ownership of Designer Brands Inc. securities, including the acquisition of call options.

Summary

• Stone House Capital Management, LLC, SH Capital Partners, L.P., and Mark Cohen jointly filed a Form 4 with the SEC.
• The filing reports changes in beneficial ownership of Designer Brands Inc. (DBI) securities.
• As of April 4, 2025, the reporting parties beneficially own 5,500,000 Class A Common Shares indirectly.
• They also acquired 15,000 call options with an exercise price of $10, expiring on January 15, 2027, underlying 1,500,000 Class A Common Shares, with prices ranging from $0.30 to $0.35.
• The reporting persons disclaim beneficial ownership except to the extent of their pecuniary interest.
• The filing includes a joint filing agreement.

Sentiment

Score: 5

Explanation: The document is a standard regulatory filing, so the sentiment is neutral. It simply reports transactions and ownership details.

Industry Context

This filing is a routine disclosure required by the SEC for individuals or entities holding more than 10% of a company's shares or acting as officers or directors, providing transparency to the market regarding significant ownership positions and transactions.

Comparison to Industry Standards

• Form 4 filings are standard practice for reporting changes in beneficial ownership as mandated by the SEC.
• Similar filings are made by major shareholders in comparable companies like Foot Locker (FL) and DSW Inc. (now Designer Brands Inc.) to disclose their transactions.
• The level of detail provided, including the price range of the call option acquisition, is consistent with regulatory expectations for transparency.

Stakeholder Impact

• The filing provides transparency to shareholders regarding the ownership stake of Stone House Capital Management, LLC, SH Capital Partners, L.P., and Mark Cohen.
• It informs the market about their investment activity in Designer Brands Inc.

Key Dates

Keywords

beneficial ownership, Form 4, Designer Brands Inc., Stone House Capital Management, SH Capital Partners, Mark Cohen, call options, securities, SEC filing