Designer Brands Inc (DBI)
NYSE:DBI
Want to see DBI full AI Analyst Report?
Top Page
Designer Brands
(NYSE:DBI)
Select Model
Select Model
Rating:47Neutral
Price Target:
$6.00
▼(-21.98% Downside)
Action:Reiterated
Date:06/19/26
The score is held back primarily by high leverage and only modest profitability despite improving revenue and cash generation. Technical indicators also remain bearish. Offsetting factors include a supportive earnings call with better margins and improved EPS outlook, plus a moderate dividend yield, but these are not yet strong enough to outweigh balance-sheet and trend risks.
Positive Factors
Brand Portfolio Strength
Sustained double-digit growth in owned/licensed brands signals durable product differentiation and higher-margin revenue diversification. Strong intercompany and brand mix gains (Topo, Jessica Simpson, Keds) support channel leverage, reduce dependence on third-party assortments, and help drive more predictable wholesale and direct-margin streams over multiple quarters.
Negative Factors
High Leverage
Very high leverage constrains financial flexibility and raises solvency risk if sales or margins slip. Interest and principal obligations limit reinvestment capacity and make the company sensitive to rate or demand shocks, weakening the balance sheet's ability to support sustained strategic initiatives over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Brand Portfolio Strength
Sustained double-digit growth in owned/licensed brands signals durable product differentiation and higher-margin revenue diversification. Strong intercompany and brand mix gains (Topo, Jessica Simpson, Keds) support channel leverage, reduce dependence on third-party assortments, and help drive more predictable wholesale and direct-margin streams over multiple quarters.
Read all positive factors
Designer Brands (DBI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$316.85M
Dividend Yield2.68%
Average Volume (3M)738.53K
Price to Earnings (P/E)29.7
Beta (1Y)2.01
Revenue Growth-1.61%
EPS GrowthN/A
CountryUS
Employees14,000
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)0.21
Shares Outstanding43,044,346
10 Day Avg. Volume548,061
30 Day Avg. Volume738,531
Financial Highlights & Ratios
PEG Ratio2.49
Price to Book (P/B)1.10
Price to Sales (P/S)0.11
P/FCF Ratio2.77
Enterprise Value/Market Cap4.71
Enterprise Value/Revenue0.51
Enterprise Value/Gross Profit1.17
Enterprise Value/Ebitda11.24
Forecast
1Y Price Target
$7.75Price Target Upside0.78% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)0.39
Revenue Forecast (FY)$2.91B
Designer Brands Business Overview & Revenue Model
Company Description
Designer Brands Inc. (DBI), through its various subsidiaries, specializes in the creation, production, and sale of footwear and fashion accessories for women, men, and children, primarily serving the North American market. The company structures i...
How the Company Makes Money
DBI makes money primarily by selling footwear and accessories to consumers through a mix of physical retail stores (notably DSW) and direct-to-consumer e-commerce. A major revenue stream is the retail sale of national and designer brands sourced f...
Designer Brands Earnings Call Summary
Earnings Call Date:Jun 09, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Positive
The call highlighted solid operational progress: revenue growth, a powerful Brand Portfolio performance (+19.4%), significant margin expansion (+240 bps), return to adjusted profitability (adjusted operating income of $19.4M and adjusted EPS $0.07), inventory reduction (-6%) and improved balance sheet metrics. Offsetting items include modest comparable-store sales declines (-1.1% consolidated, -1.2% retail), weather-driven seasonal weakness (sandals down low single digits), category softness in casual/athletic, tariff uncertainty, a high Q1 tax rate (54.5%) and anticipated Q3 expense/headwinds from reinstated incentive compensation. Overall, positives — notably margin improvement, brand momentum and return to profitability — are stronger than the headwinds, though management remains appropriately cautious on macro and tariff risks.Positive Updates
Consolidated Net Sales Growth
First quarter consolidated net sales of $696 million, up 1.4% year-over-year, with quarter-to-date Q2 trends supportive of annual sales guidance (Q2 expected flat to slightly up).
Negative Updates
Comparable Store Sales Decline
Consolidated comparable sales decreased 1.1% year-over-year; Retail comparable store sales down 1.2%, indicating pockets of weakness at the store level despite stable total retail sales.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Net Sales Growth
First quarter consolidated net sales of $696 million, up 1.4% year-over-year, with quarter-to-date Q2 trends supportive of annual sales guidance (Q2 expected flat to slightly up).
Read all positive updates
Company Guidance
Management said they now expect full-year adjusted EPS to trend toward the high end of the previously communicated range while full-year sales remain in line with prior guidance; quarter‑to‑date Q2 sales are expected to be flat to slightly up (retail flat to slightly positive, Brand Portfolio continuing strong growth after Q1’s +19.4%), with Q2 beginning with weather headwinds that improved through May. They reiterated that sales and earnings should be stronger in H1 than H2, that Q3 will be pressured as the company laps prior-year strength and reinstates incentive compensation (roughly a $10 million OpEx headwind in Q3), and that Q4 adjusted EPS should improve notably year‑over‑year; guidance assumes a full‑year tax rate in the low‑40% range (Q1 tax rate was 54.5%), a diluted share count of ~58 million, and excludes potential impacts from tariff developments (management is cautious, assuming refunds may be offset by new Section 301 tariffs). These forward-looking assumptions are supported by Q1 operating results: consolidated net sales $696 million (+1.4%), consolidated comps -1.1% (retail comps -1.2%), Brand Portfolio sales +19.4% (intercompany sales +24%), consolidated gross margin 45.3% (+240 bps) and gross profit +$20.8M, adjusted OpEx 42.9% (-50 bps), adjusted operating income $19.4M, adjusted net income $3.8M / $0.07 EPS, inventories down 6%, cash $50M, total liquidity $189M and total debt $475M.Designer Brands Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
24
Negative
Cash Flow
57
Neutral
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.90B | 2.89B | 3.01B | 3.07B | 3.32B | 3.20B |
| Gross Profit | 1.28B | 1.26B | 1.29B | 974.89M | 1.08B | 1.07B |
| EBITDA | 132.70M | 106.65M | 99.53M | 138.51M | 255.94M | 283.15M |
| Net Income | 10.21M | -8.37M | -10.55M | 29.06M | 162.68M | 154.48M |
Balance Sheet | ||||||
| Total Assets | 2.00B | 1.95B | 2.01B | 2.08B | 2.01B | 2.01B |
| Cash, Cash Equivalents and Short-Term Investments | 50.10M | 50.87M | 44.75M | 49.17M | 58.77M | 72.69M |
| Total Debt | 1.23B | 1.21B | 1.29B | 1.24B | 1.10B | 1.02B |
| Total Liabilities | 1.71B | 1.66B | 1.73B | 1.71B | 1.58B | 1.60B |
| Stockholders Equity | 280.93M | 282.49M | 278.49M | 359.22M | 429.75M | 412.40M |
Cash Flow | ||||||
| Free Cash Flow | 73.95M | 112.62M | 87.27M | 107.40M | 146.45M | 138.40M |
| Operating Cash Flow | 108.19M | 109.86M | 82.24M | 162.40M | 201.43M | 171.43M |
| Investing Cash Flow | -36.16M | -33.52M | -62.67M | -182.49M | -88.12M | -35.03M |
| Financing Cash Flow | -68.90M | -72.53M | -22.09M | 10.48M | -128.48M | -121.49M |
Designer Brands Technical Analysis
Neutral
7.69
Price Trends
7.15
Negative
6.73
Negative
5.92
Positive
Market Momentum
-0.33
Positive
42.60
Neutral
19.89
Positive
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 7.69 is above the 20-day moving average (MA) of 7.13, above the 50-day MA of 7.15, and above the 200-day MA of 5.92, indicating a neutral trend. The MACD of -0.33 indicates Positive momentum. The RSI at 42.60 is Neutral, neither overbought nor oversold. The STOCH value of 19.89 is Positive, 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 22 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
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% | |
61 Neutral | $160.75M | -13.08 | -9.82% | ― | -8.42% | 79.65% | |
48 Neutral | $197.05M | -15.58 | 6.03% | ― | -10.09% | -232.12% | |
47 Neutral | $316.85M | 29.71 | 3.57% | 2.68% | -1.61% | ― | |
45 Neutral | $62.93M | -0.58 | 245.71% | ― | -13.13% | -54.20% |
* Consumer Cyclical Sector Average
DBI
Designer Brands
6.24
3.96
173.44%
PLCE
Children's Place
2.83
-1.60
-36.12%
DLTH
Duluth Holdings
4.23
2.13
101.43%
CURV
Torrid Holdings
1.98
-0.97
-32.88%
Designer Brands Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Designer Brands Shareholders Approve Governance Changes and Elections
Positive
Jun 18, 2026
At its June 17, 2026 annual meeting, Designer Brands’ shareholders approved a suite of amendments to the company’s Code of Regulations aimed at tightening governance procedures and modernizing corporate mechanics. The changes introduce...
Dividends
Designer Brands Board Declares Quarterly Cash Dividend
Positive
Jun 11, 2026
On June 10, 2026, Designer Brands Inc.’s board approved a quarterly cash dividend of $0.05 per share on both its Class A and Class B common shares, signaling continued capital returns to shareholders. The dividend is scheduled to be paid on ...
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.