DSW 2014 Annual Report Download - page 6

Table of Contents
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DSW is the destination for fabulous brands at a great value every single day. With a breathtaking assortment of shoes, handbags and accessories for women
and men in 431 stores nationwide and on dsw.com, DSW is about the delight of finding the perfect shoe at the perfect price. Our DSW stores average
approximately 21,500 square feet and carry approximately 22,000 pairs of shoes. In addition, DSW Rewards means shopping comes with perks; members earn
points towards certificates every time they purchase. We believe this combination of assortment, convenience and value differentiates us from our
competitors and appeals to consumers from a broad range of socioeconomic and demographic backgrounds.
As a division of DSW Inc., the Affiliated Business Group ("ABG") partners with multi-category retailers and wholesalers to develop strategies and business
models for targeted shoe assortments. ABG provides service to over 370 store locations and e-commerce channels through leased partnerships with Stein
Mart, Gordmans and Frugal Fannies. Additionally, ABG operates mall-based branded specialty retail stores under the banner of Yellow Box footwear.
DSW also has an equity investment in Town Shoes. Town Shoes is the market leader in branded footwear in Canada, with sales of $293 million CAD in its
fiscal year ended January 2015. As of January 31, 2015, Town Shoes operated 182 locations across Canada primarily under The Shoe Company, Shoe
Warehouse and Town Shoes banners, as well as the .com site. In May 2014, DSW Inc. entered into a licensing agreement with Town Shoes, which allows
Town Shoes to use the DSW Designer Shoe Warehouse tradename for their new larger concept Canadian stores. The first two Canadian DSW Designer Shoe
Warehouse stores opened in August 2014.
See our consolidated financial statements and the notes thereto in Item 8 of this Annual Report on Form 10-K for financial information about our two
segments: the DSW segment, which includes DSW stores and dsw.com, and the ABG segment. Additionally, a five year summary of certain financial and
operational information is included in Item 6 of this Annual Report.
We follow a 52/53-week fiscal year that ends on the Saturday nearest to January 31 in each year. The periods presented in these financial statements are the
fiscal years ended January 31, 2015 ("fiscal 2014"), February 1, 2014 ("fiscal 2013"), February 2, 2013 ("fiscal 2012"), January 28, 2012 ("fiscal 2011") and
January 29, 2011 ("fiscal 2010"). Fiscal 2014, 2013, 2011 and 2010 each consisted of 52 weeks, while fiscal 2012 consisted of 53 weeks.
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We were incorporated in the state of Ohio on January 20, 1969 and opened our first DSW store in Dublin, Ohio in 1991. In 1998, a predecessor of RVI
purchased DSW and affiliated shoe businesses from Schottenstein Stores Corporation and Nacht Management, Inc. In July 2005, we completed an initial
public offering of our Class A Common Shares, selling approximately 32.4 million shares at an offering price of $9.50 per share.
On May 26, 2011, RVI merged (the "Merger") with and into DSW MS LLC ("Merger Sub"), with Merger Sub surviving the merger and continuing as a wholly
owned subsidiary of DSW Inc. Upon the closing of the Merger, each outstanding RVI common share was converted into 0.435 DSW Class A Common Shares,
unless the holder properly and timely elected to receive a like amount of DSW Class B Common Shares. Consolidated financial statements represent
consolidated RVI financial information. References to Retail Ventures or RVI refer to the pre-merger entity.
On October 14, 2013, the shareholders of DSW Inc. approved a two-for-one stock split of DSW Common Shares. The stock split became effective on
November 4, 2013 and provided for the issuance of one Class A Common Share for each Class A and Class B Common Share outstanding. All years presented
have been updated to reflect the stock split.
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We believe that having a leading market position is driven by our competitive strengths: the breadth of our branded product offerings, our relationships with
merchandise suppliers, our distinctive and convenient shopping experience and the value proposition offered to our customers.
The Breadth of Our Product Offerings
Our goal is to excite our customers with a competitive, compelling assortment of shoes and complementary accessories that fulfill a broad range of style and
fashion preferences. DSW sells a large assortment of brand name, designer and private brand
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Source: DSW Inc., 10-K, March 26, 2015 Powered by Morningstar® Document Research℠
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