Designer Brands (DBI) AI Stock Analysis

• Market Cap: $332.07M
• Dividend Yield: 2.68%
• Average Volume (3M): 846.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.95
• Revenue Growth: -5.16%
• EPS Growth: -3394.48%
• Country: US
• Employees: 14,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 0.38
• Shares Outstanding: 41,903,370
• 10 Day Avg. Volume: 865,985
• 30 Day Avg. Volume: 846,357
• PEG Ratio: 0.18
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 3.09
• Enterprise Value/Market Cap: 4.68
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 1.04
• Enterprise Value/Ebitda: 18.91
• 1Y Price Target: $6.25
• Price Target Upside: -7.41% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $6.00 ▼(-11.11% Downside)

The score is held down primarily by weak financial health (losses and high leverage) and bearish technical momentum. Offsetting support comes from improving cash generation and margins, a constructive earnings update with debt reduction, and a moderate dividend yield, though corporate-event risk around payment processing adds uncertainty.

Positive Factors

Cash generation and deleveraging

Sustained free cash flow improvement and a recent $47M debt paydown materially strengthen financial flexibility. Over 2-6 months this reduces refinancing risk, funds inventory and store investments, and supports execution of strategic initiatives without relying on external capital.

Improving gross and merchandise margins

Durable margin expansion from better merchandise margins and cost control supports higher gross profitability even with softer sales. This structural improvement helps restore operating leverage, making the business more resilient to modest revenue fluctuations over the medium term.

Diversified brand portfolio and category strength

A multi-brand mix and growing private-label/brand businesses provide product diversification and pricing power. Consistent brand-level growth reduces reliance on any single product line, supporting steady comps and loyalty programs that underpin repeatable revenue streams over time.

Negative Factors

High leverage and weak equity base

Significant leverage and negative ROE constrain strategic flexibility and increase sensitivity to interest costs or margin pressure. Over months, high debt levels limit ability to invest in stores, digital, or brands and raise risk of covenant strain if cash generation falters.

Declining revenue and persistent negative profitability

Ongoing top-line declines and continued negative net margins indicate structural demand or execution issues. Even with margin gains, enduring sales weakness hampers scale economics, constrains reinvestment, and slows durable recovery of operating profitability over the medium term.

Material operational risk from payment-processing dispute

A contract dispute that threatens card processing for the majority of in-store and significant online sales is a structural operational risk. If unresolved, it could disrupt transaction flows, raise costs or force emergency tech/vendor changes that materially impair sales and margins for months.

Designer Brands Business Overview & Revenue Model

Company Description

Designer Brands Inc., together with its subsidiaries, designs, manufactures, and retails footwear and accessories for women, men, and kids primarily in North America. The company operates through three segments: U.S. Retail, Canada Retail, and Brand Portfolio. It provides dress, casual, and athletic footwear; and handbags. The company offers its products under the Vince Camuto, Louise et Cie, Jessica Simpson, Lucky, JLO Jenifer Lopez, and other brands. It also operates vincecamuto.com e-commerce site, as well as www.dsw.com, www.dsw.ca, and www.theshoecompany.ca websites; and a portfolio of banners, including DSW Designer Shoe Warehouse, The Shoe Company, and Shoe Warehouse. As of January 29, 2022, it operated 648 stores. Designer Brands Inc. was founded in 1991 and is based in Columbus, Ohio.

How the Company Makes Money

Designer Brands Inc. generates revenue through multiple streams, with its primary source being the sale of footwear and accessories in its retail locations and online platforms. The company benefits from a mix of branded products and private label offerings, allowing for higher margins on exclusive items. Additionally, DBI engages in promotional sales and loyalty programs that drive customer traffic and increase average transaction values. The company also partners with various brands and manufacturers, which helps in expanding its product selection and attracting a broader customer base. Seasonal promotions and strategic marketing initiatives contribute to sales growth, particularly during key shopping periods. Overall, DBI's revenue model is supported by a combination of direct sales and strategic partnerships that enhance its product offerings and market reach.

Designer Brands Financial Statement Overview

Summary

Weak profitability and declining revenue trend weigh on results (negative net margin; low EBIT/EBITDA margins). Balance sheet risk is elevated with high leverage (debt-to-equity 4.26) and negative ROE, partially offset by improved gross margin (51.8%) and strong TTM free-cash-flow growth (+194.7%).

Income Statement

Designer Brands has faced challenges in maintaining revenue growth, with a significant decline in TTM revenue. The gross profit margin has improved to 51.8% in TTM, indicating better cost management. However, the net profit margin remains negative, reflecting ongoing profitability issues. EBIT and EBITDA margins are low, suggesting operational inefficiencies.

Balance Sheet

The company has a high debt-to-equity ratio of 4.26 in TTM, indicating significant leverage and potential financial risk. Return on equity is negative, highlighting challenges in generating returns for shareholders. The equity ratio is low, suggesting limited financial stability.

Cash Flow

There is a notable improvement in free cash flow growth, with a 194.7% increase in TTM, indicating better cash generation. The operating cash flow to net income ratio is positive, but the free cash flow to net income ratio suggests that cash flow is not fully translating into profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.89B	3.01B	3.07B	3.32B	3.20B	2.23B
Gross Profit	1.50B	1.29B	974.89M	1.08B	1.07B	311.24M
EBITDA	82.26M	99.53M	138.51M	255.94M	283.15M	-496.59M
Net Income	-1.67M	-10.55M	29.06M	162.68M	154.48M	-488.72M
Balance Sheet
Total Assets	2.05B	2.01B	2.08B	2.01B	2.01B	1.98B
Cash, Cash Equivalents and Short-Term Investments	51.35M	44.75M	49.17M	58.77M	72.69M	59.58M
Total Debt	1.27B	1.29B	1.24B	1.10B	1.02B	1.94B
Total Liabilities	1.75B	1.73B	1.71B	1.58B	1.60B	1.73B
Stockholders Equity	298.57M	278.49M	359.22M	429.75M	412.40M	243.02M
Cash Flow
Free Cash Flow	128.32M	87.27M	107.40M	146.45M	138.40M	-184.91M
Operating Cash Flow	137.71M	82.24M	162.40M	201.43M	171.43M	-153.79M
Investing Cash Flow	-39.68M	-62.67M	-182.49M	-88.12M	-35.03M	2.63M
Financing Cash Flow	-82.30M	-22.09M	10.48M	-128.48M	-121.49M	122.95M

Designer Brands Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DBI, the sentiment is Positive. The current price of 6.75 is below the 20-day moving average (MA) of 7.29, above the 50-day MA of 6.73, and above the 200-day MA of 4.14, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 46.62 is Neutral, neither overbought nor oversold. The STOCH value of 26.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DBI.

Designer Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCVL	69 Neutral	$531.62M	9.24	8.78%	3.12%	-6.22%	-22.81%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DLTH	49 Neutral	$88.14M	-2.75	-17.04%	―	-6.40%	11.65%
DBI	48 Neutral	$332.07M	-11.51	-8.61%	2.68%	-5.16%	-3394.48%
CURV	45 Neutral	$117.05M	-51.80	―	―	-7.33%	-114.80%
PLCE	38 Underperform	$91.33M	-1.57	―	―	-10.09%	81.44%

Designer Brands Corporate Events

Designer Brands Names Andrea O’Donnell as Chief Operating Officer

On January 27, 2026, Designer Brands’ board appointed Andrea O’Donnell as Chief Operating Officer, effective February 8, 2026, while she continues in her roles as Executive Vice President and President of the company’s brands business. O’Donnell brings extensive global retail and brand-building experience from leadership positions at Everlane, Deckers Outdoor Corporation, DFS Group, and Lane Crawford, and her expanded remit is expected to strengthen operational execution and support the company’s branded growth strategy, with no special arrangements or understandings underlying her promotion.

The most recent analyst rating on (DBI) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Designer Brands stock, see the DBI Stock Forecast page.

Designer Brands Wins Court Order in Worldpay Dispute

On January 27-28, 2026, Designer Brands Inc. initiated legal action in an Ohio state court to block Worldpay LLC from prematurely terminating a long-standing bank card merchant agreement that provides credit and debit card processing for nearly all of the company’s U.S. DSW store sales and more than half of its U.S. online sales, an agreement that is contractually set to expire on May 31, 2026. The court issued a temporary restraining order on January 28, 2026, finding the company likely to succeed on its breach-of-contract and declaratory claims, after Worldpay alleged a financial default, issued a termination notice effective February 2, 2026, and later a non-renewal notice, while also proposing a three-month transition period at substantially higher fees that Designer Brands calls commercially unreasonable; the company disputes any default, notes it has paid Worldpay in full and on time over nearly 12 years, is seeking damages and injunctive relief, and is urgently pursuing alternative short-, medium-, and long-term payment processing solutions to mitigate the risk of being unable to process a majority of its card transactions, which could materially harm its operations and financial performance.

The most recent analyst rating on (DBI) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Designer Brands stock, see the DBI Stock Forecast page.

Designer Brands Expands Board, Appoints New Director

On November 20, 2025, Designer Brands Inc. expanded its Board of Directors from eleven to twelve members, appointing Deborah Ferrée as a Class II director. Her appointment does not alter her current roles or compensation as Vice Chair and Chief Product Officer. Additionally, the Board declared a quarterly cash dividend of $0.05 per share for Class A and B common shares, payable on December 19, 2025, to shareholders recorded by December 5, 2025.

The most recent analyst rating on (DBI) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Designer Brands stock, see the DBI Stock Forecast page.