Designer Brands announced it acquired Canadian footwear retailer Rubino in the first quarter of fiscal year 2024.
The DSW parent company said the deal, which includes 28 Rubino stores in the Quebec province of Canada, helps expands DBI‘s presence in the country. In a Tuesday call with analysts, DBI executives explained how the acquisition fits seamlessly into DBI’s existing retail fleet, especially in relation to the brand’s Shoe Company stores.
“Rubino currently operates stores that offer nearly identical atmospheres and assortments to that of our own Shoe Company stores,” said DBI chief executive officer Doug Howe, adding that he expects “the acquisition to be immediately accretive.” Given strong consumer loyalty to Rubino, DBI plans to continue operating these storefronts under their existing banners but plans to stock the stores with DBI’s owned brands.
DBI chief financial officer Jared Poff added that Rubino generated 47 million Canadian dollars in 2023. DBI expects Rubino to contribute similar operating income as the retailer’s entire Canadian segment.
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“[Rubino stores] look, feel, smell and taste just like our Shoe Company stores,” Poff said. “They basically are Shoe Company, just rebadged as Rubino serving Quebec.”
Rubino chief executive officer Gerardo Rubino told FN in an interview that he will stay with the chain as CEO and hopes the deal with DBI will help the chain continue to expand and open new locations.
“My team and I are extremely excited to be a part of the DBI family,” he told FN. “It couldn’t be a better fit, as their mission and focus on the customer are step-in-step with Rubino’s. It’s a dream come true to be joining the shoe co. and DSW banners in Canada and what I consider to be the gold standard in the footwear industry.”
The acquisition news comes as other shoe executives indicate a renewed desire for more deals in the near future. Throughout the most recent quarter, Executives from Steve Madden, Shoe Carnival and Macy’s indicated that they were open to buying or selling assets for the right price.
As part of its strategy to grow sales from owned brands, Designer Brands Inc. (DBI) has made a series of brand acquisitions in recent years, including the 2023 acquisition of Keds and the 2022 acquisitions of Topo Athletic and Le Tigre brands. In April 2022, DBI announced a goal for sales from owned brands and Camuto national owned and licensed brands to double from 19% of the company’s revenue to almost one-third by 2026.
