Designer Brands (DBI) AI Stock Analysis

• Market Cap: $176.38M
• Dividend Yield: 5%
• Average Volume (3M): 640.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.93
• Revenue Growth: -4.63%
• EPS Growth: -637.55%
• Country: US
• Employees: 14,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 0.34
• Shares Outstanding: 41,810,745
• 10 Day Avg. Volume: 639,116
• 30 Day Avg. Volume: 640,394
• 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: 8.15
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 1.66
• Enterprise Value/Ebitda: 208.69
• 1Y Price Target: $4.50
• Price Target Upside: 12.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $3.50 ▼(-12.50% Downside)

Designer Brands faces significant financial challenges with declining sales and high leverage, which are major concerns. However, strategic improvements and positive trends in specific areas, along with a stable technical outlook, provide some optimism. The high dividend yield offers a potential cushion for investors, but the negative P/E ratio and macroeconomic uncertainties remain key risks.

Positive Factors

Strategic Partnerships

The partnership with DoorDash has brought in 85% new customers to DSW, indicating a strong potential for customer base expansion and revenue growth.

Product Category Performance

The women's dress category saw a 5% positive comp, a 900 basis point improvement, highlighting effective inventory and marketing strategies.

Debt Management

Reducing debt levels improves financial flexibility and reduces interest expenses, strengthening the company's balance sheet.

Negative Factors

Sales Decline

A decline in sales indicates challenges in market demand or competition, impacting revenue and profitability in the long term.

High Leverage

High leverage can strain financial resources and limit strategic options, posing risks during economic downturns or market volatility.

Leadership Transition

Leadership changes can lead to strategic shifts or disruptions, affecting company performance and investor confidence in the short to medium term.

Designer Brands Business Overview & Revenue Model

Company Description

Designer Brands Inc. (DBI) is a leading retailer of footwear and accessories, primarily operating under the DSW (Designer Shoe Warehouse) brand. The company focuses on delivering a wide array of branded and private-label footwear for men, women, and children, as well as accessories such as handbags and socks. Operating both physical stores and an online platform, DBI caters to a diverse customer base across various market segments, emphasizing both style and affordability.

How the Company Makes Money

Designer Brands generates revenue primarily through the sale of footwear and accessories in its retail locations and e-commerce channels. The company's revenue model is built on a combination of direct sales, private-label product offerings, and branded merchandise from various well-known manufacturers. Key revenue streams include in-store sales, online sales, and membership programs that encourage repeat customers. Additionally, DBI benefits from partnerships with various brands that allow for exclusive product offerings and seasonal collections, which can drive higher traffic and sales. The company also leverages its loyalty program to enhance customer retention and increase average transaction values.

Designer Brands Financial Statement Overview

Summary

Designer Brands is facing financial headwinds with declining revenues and profitability challenges. High leverage and negative returns on equity highlight financial risks. While there is some positive cash flow, the overall financial health is under pressure, requiring strategic adjustments to improve performance.

Income Statement

Designer Brands has faced challenges in maintaining profitability, with a negative net profit margin of -1.09% TTM. The revenue growth rate has been negative, indicating a decline in sales. Gross profit margin remains relatively stable at 48.19% TTM, but the EBIT and EBITDA margins are negative, reflecting operational inefficiencies.

Balance Sheet

The company has a high debt-to-equity ratio of 4.70 TTM, indicating significant leverage, which poses a risk in a volatile market. Return on equity is negative, suggesting that the company is not generating sufficient returns on shareholders' investments. The equity ratio is low, highlighting a reliance on debt financing.

Cash Flow

Operating cash flow remains positive, but the operating cash flow to net income ratio is low at 0.11 TTM, indicating limited cash generation relative to net income. Free cash flow has shown some growth, but the free cash flow to net income ratio suggests challenges in converting earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.20B	3.01B	3.07B	3.32B	3.20B	2.23B
Gross Profit	865.50M	1.29B	974.89M	1.08B	1.07B	311.24M
EBITDA	6.89M	99.53M	138.51M	255.94M	283.15M	-496.59M
Net Income	6.42M	-10.55M	29.06M	162.68M	154.48M	-488.72M
Balance Sheet
Total Assets	2.06B	2.01B	2.08B	2.01B	2.01B	1.98B
Cash, Cash Equivalents and Short-Term Investments	44.94M	44.75M	49.17M	58.77M	72.69M	59.58M
Total Debt	1.32B	1.29B	1.24B	1.10B	1.02B	1.26B
Total Liabilities	1.78B	1.73B	1.71B	1.58B	1.60B	1.73B
Stockholders Equity	280.80M	278.49M	359.22M	429.75M	412.40M	243.02M
Cash Flow
Free Cash Flow	-14.58M	87.27M	107.40M	146.45M	138.40M	-184.91M
Operating Cash Flow	-8.68M	82.24M	162.40M	201.43M	171.43M	-153.79M
Investing Cash Flow	-27.89M	-62.67M	-182.49M	-88.12M	-35.03M	2.63M
Financing Cash Flow	33.01M	-22.09M	10.48M	-128.48M	-121.49M	122.95M

Designer Brands Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 4 is above the 20-day moving average (MA) of 3.58, above the 50-day MA of 3.79, and above the 200-day MA of 3.50, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 61.10 is Neutral, neither overbought nor oversold. The STOCH value of 46.91 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	67 Neutral	$465.34M	7.49	9.69%	3.28%	-6.42%	-19.27%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GES	59 Neutral	$881.46M	168.59	6.23%	6.63%	7.84%	-81.20%
DBI	53 Neutral	$176.38M	―	-9.98%	5.00%	-4.63%	-637.55%
PLCE	49 Neutral	$151.41M	―	―	―	-12.08%	93.16%
DLTH	47 Neutral	$99.07M	―	-24.97%	―	-6.13%	-215.18%
CURV	42 Neutral	$124.95M	40.38	―	―	-5.76%	-75.71%

Designer Brands Corporate Events

Designer Brands Announces CFO Resignation and Interim Appointment

On October 3, 2025, Designer Brands Inc. announced the resignation of Jared A. Poff from his roles as Executive Vice President, Chief Financial Officer, and Chief Administrative Officer, effective October 31, 2025, to pursue a new professional opportunity. The Board has appointed Mark A. Haley as the interim Principal Financial Officer starting November 1, 2025, while continuing his role as Senior Vice President, Controller, and Principal Accounting Officer. The company is initiating an executive search for a permanent CFO. This transition is expected to be seamless, with Mr. Haley working closely with the company’s financial leadership. Mr. Haley will receive a retention bonus and restricted stock units as part of his new role.

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.

Designer Brands Announces Quarterly Cash Dividend

On September 18, 2025, Designer Brands announced a quarterly cash dividend of $0.05 per share for its Class A and Class B common shares, payable on October 17, 2025, to shareholders recorded by October 3, 2025. This decision reflects the company’s ongoing commitment to returning value to its shareholders and may influence investor sentiment and market positioning.

The most recent analyst rating on (DBI) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Designer Brands stock, see the DBI Stock Forecast page.

Designer Brands Reports Q2 2025 Financial Results

Designer Brands Inc., a leading designer, producer, and retailer of footwear and accessories, is renowned for its extensive portfolio of popular brands and its commitment to transforming the footwear industry through a robust omni-channel infrastructure.

Designer Brands Earnings Call: Strategic Gains Amid Challenges

In the latest earnings call, Designer Brands Inc. expressed a cautiously optimistic sentiment. The company highlighted several strategic improvements and positive trends, particularly in specific product categories and brand partnerships. However, challenges such as an overall sales decline and macroeconomic headwinds, including tariffs, continue to pose significant obstacles. Despite these challenges, the sentiment remains positive, buoyed by targeted improvements and strategic initiatives.