Designer Brands (DBI) AI Stock Analysis

• Market Cap: $148.43M
• Dividend Yield: 7.07%
• Average Volume (3M): 1.97M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• Revenue Growth: -4.22%
• EPS Growth: -386.70%
• Country: US
• Employees: 14,000
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Apparel - Retail
• EPS (TTM): -0.26
• Shares Outstanding: 41,091,652
• 10 Day Avg. Volume: 1,906,317
• 30 Day Avg. Volume: 1,972,841
• PEG Ratio: 0.02
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.05
• Enterprise Value/Market Cap: 9.49
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 1.05
• Enterprise Value/Ebitda: 3.83
• 1Y Price Target: $3.50
• Price Target Upside: 15.13% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 51 Neutral
• Price Target: $2.50 ▼(-17.76%Downside)

Designer Brands' overall score reflects significant financial and operational challenges. The high leverage and net losses weigh heavily on the score, compounded by bearish technical indicators. While cost-cutting and dividend announcements offer some positive aspects, the lack of profitability and cautious earnings guidance maintain a moderately low score.

Positive Factors

Consumer Environment

Real wages are still growing against a relatively healthy employment setup, providing a favorable consumer environment.

Logistics and Inventory Management

Management noted its digital orders fulfilled by its logistics center increased by 56% from last year, leading to increased store in-stock levels and higher in-store conversion.

Operational Efficiency

The company is prioritizing its retail channels and improving operating cost control, which should result in approximately $20 million to $30 million of savings.

Negative Factors

Debt and Cash Position

The largest risk is potential sustained losses, with a large debt balance and increasingly limited cash position.

Financial Performance

Designer Brands reported materially worse-than-expected first-quarter results and pulled its full-year guidance.

Market Sentiment

There is skepticism due to unknown effects of tariffs and broader shifts in sentiment impacting the company's future.

Designer Brands Business Overview & Revenue Model

Company Description

Designer Brands Inc. (DBI) is a leading footwear and accessories retailer in North America, primarily operating through its DSW Designer Shoe Warehouse stores. The company offers a wide range of brand-name and designer footwear and accessories, targeting a diverse customer base with various lifestyle needs. In addition to its retail operations, DBI also engages in wholesale distribution of footwear and operates several private-label brands, enhancing its product portfolio.

How the Company Makes Money

Designer Brands Inc. generates revenue primarily through the sale of footwear and accessories across its extensive retail network, which includes both physical stores and an online presence. A significant portion of its revenue comes from its DSW Designer Shoe Warehouse stores, which offer a broad selection of shoes and accessories for men, women, and children. Additionally, DBI benefits from its private-label brands, which often carry higher margins. The company also engages in wholesale activities, distributing footwear products to other retailers. Strategic partnerships and collaborations with well-known brands and designers further enhance its product offerings and attract a diverse array of customers, contributing to its overall earnings.

Designer Brands Financial Statement Overview

Summary

Designer Brands shows moderate financial performance with a reasonable gross profit margin but faces net losses and high leverage, raising concerns about financial stability. Cash flow is positive, but declining growth is a negative indicator.

Income Statement

Designer Brands demonstrates moderate performance in its income statement. The TTM Gross Profit Margin is 45.28%, indicating decent profitability. However, with a TTM Net Profit Margin of -0.97%, the company struggles with net losses, primarily due to declining EBIT and EBITDA margins. The revenue growth trajectory shows a decrease, reflecting challenges in maintaining revenue levels.

Balance Sheet

The balance sheet shows a relatively high Debt-to-Equity Ratio of 5.00, indicating significant leverage and potential risk. The Return on Equity has weakened, negatively impacted by net losses. The Equity Ratio of 12.76% highlights a low proportion of equity, suggesting vulnerability in financial stability.

Cash Flow

Cash flow health is moderate, with positive operating cash flow and a Free Cash Flow to Net Income Ratio of 1.37 in TTM, suggesting some efficiency in converting earnings to cash. However, the Free Cash Flow Growth Rate is negative, indicating recent declines in cash flow generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.95B	3.01B	3.07B	3.32B	3.20B	2.23B
Gross Profit	1.34B	1.29B	974.89M	1.08B	1.07B	311.24M
EBITDA	81.45M	99.53M	138.51M	255.94M	283.15M	-496.59M
Net Income	-28.76M	-10.55M	29.06M	162.68M	154.48M	-488.72M
Balance Sheet
Total Assets	2.09B	2.01B	2.08B	2.01B	2.01B	1.98B
Cash, Cash Equivalents and Short-Term Investments	46.02M	44.75M	49.17M	58.77M	72.69M	59.58M
Total Debt	1.33B	1.29B	1.24B	1.10B	1.02B	1.26B
Total Liabilities	1.82B	1.73B	1.71B	1.58B	1.60B	1.73B
Stockholders Equity	266.94M	278.49M	359.22M	429.75M	412.40M	243.02M
Cash Flow
Free Cash Flow	39.32M	87.27M	107.40M	146.45M	138.40M	-184.91M
Operating Cash Flow	81.55M	82.24M	162.40M	201.43M	171.43M	-153.79M
Investing Cash Flow	-41.70M	-62.67M	-182.49M	-88.12M	-35.03M	2.63M
Financing Cash Flow	-36.74M	-22.09M	10.48M	-128.48M	-121.49M	122.95M

Designer Brands Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.04
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DBI, the sentiment is Neutral. The current price of 3.04 is above the 20-day moving average (MA) of 2.67, above the 50-day MA of 3.01, and below the 200-day MA of 4.43, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 57.22 is Neutral, neither overbought nor oversold. The STOCH value of 87.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DBI.

Designer Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCVL	74 Outperform	$583.62M	8.93	10.52%	2.85%	-1.24%	-11.02%
GES	68 Neutral	$675.17M	14.29	2.61%	9.27%	9.02%	-93.19%
Sector *	62 Neutral	$16.85B	11.50	-7.38%	2.96%	1.59%	-23.36%
CTRN	61 Neutral	$273.29M	―	-29.52%	―	1.85%	-337.77%
GCO	57 Neutral	$239.83M	―	-3.07%	―	1.85%	22.34%
FL	55 Neutral	$2.36B	194.63	-12.85%	―	-2.62%	0.93%
DBI	51 Neutral	$148.43M	―	-9.20%	7.07%	-4.22%	-386.70%

Designer Brands Corporate Events

Designer Brands Re-elects Directors at Annual Meeting

At the Annual Meeting, Designer Brands‘ shareholders voted on several key proposals. The election of four Class III director nominees resulted in the re-election of John W. Atkinson, Elaine J. Eisenman, Joanna T. Lau, and Joseph A. Schottenstein, with their terms set to expire at the 2028 Annual Meeting. Additionally, the shareholders ratified the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending January 31, 2026.

The most recent analyst rating on (DBI) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Designer Brands stock, see the DBI Stock Forecast page.

Designer Brands Declares Quarterly Cash Dividend

On May 15, 2025, Designer Brands‘ Board approved a quarterly cash dividend of $0.05 per share for its Class A and Class B common shares. This dividend will be paid on June 18, 2025, to shareholders recorded by June 5, 2025, reflecting the company’s ongoing commitment to returning value to its shareholders.

The most recent analyst rating on (DBI) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Designer Brands stock, see the DBI Stock Forecast page.