Designer Brands Inc (DBI)
NYSE:DBI
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Designer Brands
(NYSE:DBI)
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Rating:50Neutral
Price Target:
$7.00
▲(16.28% Upside)
Action:ReiteratedDate:03/05/26
DBI scores in the low-middle range primarily due to weak financial performance (declining revenue, negative net profitability, and high leverage). Offsetting this are improving cash flow and constructive earnings-call trends (margin improvement and debt paydown), while technicals are neutral and valuation remains hindered by negative earnings despite a moderate dividend yield.
Positive Factors
Margin Improvement
Sustained gross margin expansion (TTM 51.8%) and merchandise margin gains reduce reliance on top-line growth to restore profitability. Higher per-unit economics give management scope to invest in product, marketing and omnichannel capabilities while absorbing markdowns or cost pressures over the medium term.
Negative Factors
Declining Revenue & Negative Profitability
Ongoing sales declines and a negative net margin constrain the company's ability to achieve self-sustaining profitability. Even with margin gains, shrinking top line reduces operating leverage, limits reinvestment capacity, and makes meeting multi-channel growth targets and long-term margin normalization more challenging.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Improvement
Sustained gross margin expansion (TTM 51.8%) and merchandise margin gains reduce reliance on top-line growth to restore profitability. Higher per-unit economics give management scope to invest in product, marketing and omnichannel capabilities while absorbing markdowns or cost pressures over the medium term.
Read all positive factors
Designer Brands (DBI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$270.02M
Dividend Yield2.68%
Average Volume (3M)738.53K
Price to Earnings (P/E)―
Beta (1Y)1.95
Revenue Growth-5.16%
EPS Growth-3394.48%
CountryUS
Employees14,000
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.31
Shares Outstanding41,903,370
10 Day Avg. Volume548,061
30 Day Avg. Volume738,531
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)0.97
Price to Sales (P/S)0.09
P/FCF Ratio3.09
Enterprise Value/Market Cap5.28
Enterprise Value/Revenue0.49
Enterprise Value/Gross Profit0.95
Enterprise Value/Ebitda14.71
Forecast
1Y Price Target
$6.75Price Target Upside12.13% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)0.37
Revenue Forecast (FY)$2.95B
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 Bra...
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...
Designer Brands Earnings Call Summary
Earnings Call Date:Mar 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 10, 2026
Earnings Call Sentiment Positive
The call conveyed measured optimism supported by meaningful margin expansion, disciplined cost and inventory management, debt reduction, and strong brand-level momentum (notably Topo and improved DSW brand engagement). These operational wins enabled adjusted operating income to exceed guidance and set expectations for EPS improvement in 2026. However, top-line pressure persisted (full-year sales down 3.9%, comps down 4.3%), the Brand Portfolio faced a full-year decline despite late-year recovery, full-year net income and EPS fell due largely to a higher effective tax rate, and management flagged macro/tariff/geopolitical uncertainties and tougher back-half comparisons. Overall, the positives around margin, profitability progress, balance-sheet improvement, and brand momentum outweigh the outstanding top-line and tax-related headwinds.Positive Updates
Full-Year Adjusted Operating Income Above Guidance
Full-year adjusted operating income of $65.2M, beating guidance of $50M–$55M and driven by gross profit expansion and disciplined expense management (adjusted operating expenses declined ~$26M YoY).
Negative Updates
Full-Year Top-Line Decline
Full-year net sales decreased 3.9% to $2.9B and consolidated comparable sales declined 4.3% YoY, reflecting a pressured top-line for the year.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Adjusted Operating Income Above Guidance
Full-year adjusted operating income of $65.2M, beating guidance of $50M–$55M and driven by gross profit expansion and disciplined expense management (adjusted operating expenses declined ~$26M YoY).
Read all positive updates
Company Guidance
The company guided fiscal 2026 total net sales to be down 1% to up 1% (Retail flat to slightly down, Brand Portfolio up double digits), with management expecting meaningful operating income and EPS growth; EPS is projected at $0.28–$0.38 per diluted share on an average diluted share count of ~58.0M (versus adjusted EPS of $0.16 in FY25), an effective tax rate of ~40%, and anticipated interest expense of roughly $40M. For Q1 they expect sales flat to up low-single-digits and EPS breakeven to slightly positive, with stronger sales and earnings in H1 and tougher comparisons in H2; the outlook assumes a return to normalized incentive compensation (after 2025 rightsizing), does not assume tariff-driven upside, and is framed against FY25 metrics including adjusted operating income of ~$65.2M, inventories down ~6% at year-end, cash of $50.9M, total liquidity of $152M, and total debt of $435M (down ~$60M year-over-year).Designer Brands Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
40
Negative
Cash Flow
55
Neutral
| Breakdown | TTM | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 | Jan 2021 |
|---|---|---|---|---|---|---|
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 | 96.94M | 99.53M | 138.51M | 255.94M | 283.15M | -496.59M |
| Net Income | -26.55M | -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
Negative
6.02
Price Trends
6.55
Negative
6.19
Negative
4.71
Positive
Market Momentum
-0.37
Negative
39.50
Neutral
61.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DBI, the sentiment is Negative. The current price of 6.02 is above the 20-day moving average (MA) of 5.83, below the 50-day MA of 6.55, and above the 200-day MA of 4.71, indicating a neutral trend. The MACD of -0.37 indicates Negative momentum. The RSI at 39.50 is Neutral, neither overbought nor oversold. The STOCH value of 61.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DBI.
Designer Brands Risk Analysis
Designer Brands disclosed 20 risk factors in its most recent earnings report. Designer Brands reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Designer Brands Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $440.06M | 9.96 | 8.72% | 3.12% | -6.22% | -22.81% | |
53 Neutral | $110.66M | -5.06 | -9.82% | ― | -6.40% | 11.65% | |
50 Neutral | $270.02M | -37.20 | -2.97% | 2.68% | -5.16% | -3394.48% | |
46 Neutral | $177.56M | -16.58 | 0.97% | ― | -7.33% | -114.80% | |
44 Neutral | $69.83M | -9.20 | 289.32% | ― | -10.09% | 81.44% |
* Consumer Cyclical Sector Average
DBI
Designer Brands
5.44
1.96
56.37%
SCVL
Shoe Carnival
16.02
-5.34
-24.99%
PLCE
Children's Place
3.15
-5.59
-63.96%
DLTH
Duluth Holdings
3.01
1.27
72.99%
CURV
Torrid Holdings
1.79
-3.69
-67.34%
Designer Brands Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Designer Brands Extends and Refines Revolving Credit Facilities
Positive
Mar 4, 2026
On February 27, 2026, Designer Brands Inc. amended its asset-based revolving credit agreement, slightly reducing the maximum commitment of its first-in-last-out term loan facility from $30 million to $29.5 million while maintaining the $600 millio...
Executive/Board Changes
Designer Brands Appoints Sheamus Toal as New CFO
Positive
Feb 11, 2026
Designer Brands Inc., a major footwear designer, producer and retailer with a broad portfolio of owned and licensed brands and a large North American store and e-commerce footprint, focuses on delivering on-trend shoes and accessories across multi...
Business Operations and StrategyLegal Proceedings
Designer Brands Secures Extended Payment Processing Agreement With Worldpay
Positive
Feb 9, 2026
On January 28, 2026, the Court of Common Pleas in Franklin County, Ohio issued a temporary restraining order preventing Worldpay, LLC from terminating its Bank Card Merchant Agreement with Designer Brands Inc. and ceasing credit and debit card pro...
Business Operations and StrategyExecutive/Board Changes
Designer Brands Names Andrea O’Donnell as Chief Operating Officer
Positive
Jan 30, 2026
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 bus...
Business Operations and StrategyLegal Proceedings
Designer Brands Wins Court Order in Worldpay Dispute
Negative
Jan 29, 2026
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 al...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.