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Designer Brands Inc (DBI)
NYSE:DBI
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Designer Brands
(NYSE:DBI)
55Neutral
Designer Brands (DBI) vs. S&P 500 (SPY)
Market Cap
$138.65M
Dividend Yield6.92%
Average Volume (3M)1.87M
Price to Earnings (P/E)―
Beta (1Y)1.17
Revenue Growth-2.14%
EPS Growth-173.54%
CountryUS
Employees14,000
SectorConsumer Cyclical
Sector Strength62
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.30
Shares Outstanding40,242,474
10 Day Avg. Volume1,616,535
30 Day Avg. Volume1,872,203
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap10.71
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit1.16
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.75Price Target Upside56.77% Upside
Rating ConsensusHold
Number of Analyst Covering3
Designer Brands Business Overview & Revenue Model
Company DescriptionDesigner 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 MoneyDesigner Brands Inc. generates revenue primarily through the sale of footwear and accessories across its retail and digital channels. The company operates a multi-channel business model, combining brick-and-mortar stores and a robust e-commerce platform to reach a broad customer base. Key revenue streams include the sale of branded footwear, which encompasses a mix of third-party and exclusive private-label brands. Designer Brands benefits from strategic partnerships with various designers and brand collaborations, enhancing its product offerings and market appeal. Furthermore, the company engages in loyalty programs and marketing initiatives to drive customer retention and sales growth. Overall, Designer Brands' earnings are influenced by its ability to effectively manage inventory, respond to fashion trends, and optimize its retail footprint.
Designer Brands Financial Statement Overview
Summary
Designer Brands is navigating a challenging retail environment with a mix of stability and volatility in its financial performance. While operational efficiencies are present, consistent profitability remains elusive. The balance sheet reflects substantial leverage, necessitating careful financial management. Cash flow generation is a relative strength, providing liquidity to maneuver through industry fluctuations. Overall, while there are positive operational aspects, financial stability is dependent on improved profitability and debt management.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.55
Neutral
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.60
Neutral
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.65
Positive
| 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 |
| 34.93M | 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
Neutral
3.03
Price Trends
3.43
Negative
4.40
Negative
5.29
Negative
Market Momentum
-0.18
Negative
49.28
Neutral
85.13
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 3.03 is above the 20-day moving average (MA) of 2.80, below the 50-day MA of 3.43, and below the 200-day MA of 5.29, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 49.28 is Neutral, neither overbought nor oversold. The STOCH value of 85.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DBI.
Designer Brands Risk Analysis
Designer Brands disclosed 21 risk factors in its most recent earnings report. Designer Brands reported the most risks in the “Ability to Sell” 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $577.99M | 14.50 | 10.01% | 10.76% | 7.88% | -68.39% | |
68 Neutral | $471.75M | 6.48 | 11.97% | 3.20% | 2.30% | 0.88% | |
61 Neutral | $6.66B | 11.71 | 2.96% | 4.01% | 2.64% | -20.91% | |
59 Neutral | $181.61M | ― | -31.87% | ― | 0.69% | -254.98% | |
56 Neutral | $1.18B | 101.22 | 0.62% | ― | -2.20% | ― | |
55 Neutral | $138.65M | ― | -3.31% | 6.92% | -2.14% | -173.54% | |
45 Neutral | $225.51M | ― | -3.49% | ― | 0.02% | -31.11% |
* Consumer Cyclical Sector Average
Performance Comparison
DBI
Designer Brands
3.03
-6.18
-67.10%
CTRN
Citi Trends
23.36
1.26
5.70%
FL
Foot Locker
13.00
-8.81
-40.39%
GCO
Genesco
20.43
-4.00
-16.37%
GES
Guess?
11.36
-13.30
-53.93%
SCVL
Shoe Carnival
18.16
-15.79
-46.51%
Designer Brands Earnings Call Summary
Earnings Call Date:Mar 20, 2025
(Q4-2024)
| % Change Since: -19.20%|
Next Earnings Date:Jun 04, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive developments such as a return to positive comps, strong performance in the Brand Portfolio segment, and successful brand growth, alongside challenges like year-over-year sales declines, increased operating expenses, and a soft start to 2025. Positive initiatives were evident, but macroeconomic uncertainties and category-specific struggles were also notable.Q4-2024 Updates
Positive Updates
Return to Positive Comps
For the first time in nine quarters, Designer Brands Inc. returned to positive comps in the fourth quarter of fiscal 2024, with comps up 1% excluding the 53rd week.
Strong Performance in Brand Portfolio Segment
Sales in the Brand Portfolio segment were up approximately 12% for the fourth quarter and roughly 14% for the full year. The segment achieved operating profitability for the first time.
Expansion of Gross Margins
Gross margins expanded by 100 basis points in the Brand Portfolio segment, contributing to a significant improvement in operating margin.
Growth in Key Brands
Topo Athletic and Jessica Simpson brands outperformed expectations throughout the year, with Topo up nearly 80% and Jessica up over 20% in wholesale sales.
DSW Market Share Gain
DSW sales growth outpaced the footwear market, resulting in a 10 basis point gain in footwear market share versus last year.
Return of Cash to Shareholders
Designer Brands returned $79 million to shareholders through dividends and share repurchases in fiscal 2024.
Negative Updates
Year-Over-Year Sales Decline
Total sales for the full year were down roughly 2%, with comps down 1.7%, in line with revised guidance.
Impact of 53rd Week
Sales for the quarter were down 7% primarily due to the impact of the 53rd week last year.
Challenges in Seasonal Categories
Weaknesses were noted in seasonal categories, with a 900 basis points decrease in the boot category.
Increased Operating Expenses
Adjusted operating expense increased by 40 basis points in the fourth quarter and 50 basis points for the full year.
Soft Start to 2025
The company experienced a slower-than-anticipated start to fiscal 2025, with expectations for first-quarter sales to be below the prior year.
Company Guidance
In the fourth quarter of fiscal year 2024, Designer Brands Inc. reported a 5% year-over-year decline in total sales due to the inclusion of a 53rd week in the previous year, but excluding that week, comparable sales rose by 1%. For the full year, the company saw a 2% decrease in total sales and a 1.7% decrease in comparable sales, aligning with revised guidance. The company achieved an adjusted EPS of $0.27, reaching the upper end of their revised guidance range of $0.10 to $0.30. Notably, U.S. Retail comps increased by 1% in the fourth quarter, marking a return to positive comps for the first time since Q3 2022, while Canada Retail saw a 5% increase in comps for the quarter. The Brand Portfolio segment experienced a sales growth of approximately 12% in Q4 and 14% for the full year, achieving operating profitability for the first time. The company expanded its gross margins by 100 basis points and reduced operating expenses by nearly 700 basis points in this segment. For fiscal 2025, Designer Brands projects low single-digit sales growth for U.S. Retail, mid to high single-digit growth for Canada Retail, and mid single-digit growth for the Brand Portfolio segment, with an expected EPS range of $0.30 to $0.50, representing a nearly 50% increase at the midpoint compared to 2024.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.