Designer Brands (DBI) AI Stock Analysis

• Market Cap: $108.39M
• Dividend Yield: 9.01%
• Average Volume (3M): 1.64M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.41
• Revenue Growth: -4.22%
• EPS Growth: -386.70%
• Country: US
• Employees: 14,000
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Apparel - Retail
• EPS (TTM): -0.26
• Shares Outstanding: 41,091,652
• 10 Day Avg. Volume: 2,765,655
• 30 Day Avg. Volume: 1,644,185
• PEG Ratio: 0.32
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.85
• Enterprise Value/Market Cap: 16.18
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 1.36
• Enterprise Value/Ebitda: 4.23
• 1Y Price Target: $3.50
• Price Target Upside: 57.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 54 Neutral
• Price Target: $2.50 ▲(12.61%Upside)

While Designer Brands shows some operational strengths and strategic improvements, significant challenges in profitability and sales declines weigh heavily on the stock. The high leverage and uncertain market conditions further impact the score, despite positive signals from dividend declarations and brand growth initiatives.

Positive Factors

Digital Expansion

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 Flow

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.

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 operational efficiency in a challenging environment, but consistent profitability is lacking due to net losses. High leverage is a concern, though cash flow generation is a relative strength, providing liquidity amidst industry fluctuations.

Income Statement

Despite a challenging environment, Designer Brands has managed to stabilize its revenue after significant fluctuations in previous years. The gross profit margin remains healthy, reflecting effective cost management. However, the net profit margin has been under pressure, with a recent shift to negative net income, indicating profitability challenges. The EBIT and EBITDA margins show operational efficiency, yet they are dampened by the overall net losses, which could impact long-term profitability.

Balance Sheet

The company's balance sheet indicates a relatively high debt-to-equity ratio, suggesting leverage risk. However, the return on equity has shown improvement in past periods, though it has recently turned negative, mirroring the net income trend. The equity ratio indicates a modest level of equity financing, but the increased liabilities could pose a risk if not managed properly.

Cash Flow

Designer Brands’ cash flow shows resilience with consistent positive operating cash flow. The free cash flow growth has been volatile, reflecting changes in capital expenditures and financing needs. The operating cash flow to net income ratio suggests strong cash generation capabilities relative to earnings, despite recent net losses. Overall, the cash flow statement portrays a company capable of generating cash, albeit with fluctuations.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
3.01B	3.07B	3.32B	3.20B	2.23B
	Gross Profit
1.29B	974.89M	1.08B	1.07B	311.24M
	EBIT
34.93M	72.40M	110.26M	128.95M	-442.04M
	EBITDA
99.53M	138.51M	255.94M	283.15M	-496.59M
	Net Income Common Stockholders
-10.55M	29.06M	162.68M	154.48M	-488.72M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
44.75M	49.17M	58.77M	72.69M	59.58M
	Total Assets
2.01B	2.08B	2.01B	2.01B	1.98B
	Total Debt
1.29B	1.24B	1.10B	1.02B	1.26B
	Net Debt
1.24B	1.19B	1.04B	948.50M	1.20B
	Total Liabilities
1.73B	1.71B	1.58B	1.60B	1.73B
	Stockholders Equity
278.49M	359.22M	429.75M	412.40M	243.02M
Cash Flow		Free Cash Flow
87.27M	107.40M	146.45M	138.40M	-184.91M
	Operating Cash Flow
82.24M	162.40M	201.43M	171.43M	-153.79M
	Investing Cash Flow
-62.67M	-182.49M	-88.12M	-35.03M	2.63M
	Financing Cash Flow
-22.09M	10.48M	-128.48M	-121.49M	122.95M

Designer Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2.22 is below the 20-day moving average (MA) of 3.30, below the 50-day MA of 3.08, and below the 200-day MA of 4.66, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 30.07 is Neutral, neither overbought nor oversold. The STOCH value of 2.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DBI.

Designer Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCVL	73 Outperform	$520.75M	7.97	10.52%	3.15%	-1.24%	-11.02%
GES	66 Neutral	$596.11M	14.29	2.61%	10.47%	9.02%	-93.19%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
CTRN	57 Neutral	$250.31M	―	-29.52%	―	1.85%	-337.77%
FL	56 Neutral	$2.29B	194.63	-12.85%	―	-2.62%	0.93%
DBI	54 Neutral	$108.39M	―	-9.20%	9.01%	-4.22%	-386.70%
GCO	49 Neutral	$219.56M	―	-3.07%	―	1.85%	22.34%

Designer Brands Corporate Events

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.