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Designer Brands
(NYSE:DBI)
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Rating:57Neutral
Price Target:
$7.00
▲(22.38% Upside)
Action:Reiterated
Date:09/15/26
DBI’s score is held back primarily by financial risk factors—sharp TTM revenue decline, thin operating margins, and a highly levered balance sheet—despite improving profitability and solid free cash flow. The raised guidance and positive earnings-call tone support the outlook, while technicals are constructive but show some near-overbought signals; valuation is reasonable with a moderate P/E and a ~3% dividend yield.
Positive Factors
Brand portfolio growth
Strong growth across owned brands diversifies Designer Brands beyond traditional retail and can support better economics over time. Topo, Jessica Simpson, and wholesale distribution provide multiple avenues for expanding reach, increasing brand relevance, and improving the durability of future revenue.
Negative Factors
Sharp revenue contraction
A sharply lower trailing revenue base and continuing retail sales pressure indicate that the earnings recovery is not yet supported by broad top-line momentum. Persistent sales weakness can limit operating leverage, reduce purchasing scale, and make margin improvements harder to sustain.
Read all positive and negative factors
Positive Factors
Negative Factors
Brand portfolio growth
Strong growth across owned brands diversifies Designer Brands beyond traditional retail and can support better economics over time. Topo, Jessica Simpson, and wholesale distribution provide multiple avenues for expanding reach, increasing brand relevance, and improving the durability of future revenue.
Read all positive factors
Designer Brands Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Measures operating profit across business segments after operating expenses, revealing which areas are most efficient and where costs or weaker demand may be weighing on earnings.
Measures operating profit across business segments after operating expenses, revealing which areas are most efficient and where costs or weaker demand may be weighing on earnings.
Data provided by:
The Fly
The FlyDesigner Brands (DBI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$297.03M
Dividend Yield3.44%
Average Volume (3M)727.14K
Price to Earnings (P/E)17.6
Beta (1Y)2.00
Revenue Growth-0.84%
EPS GrowthN/A
CountryUS
Employees13,000
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)0.33
Shares Outstanding43,390,682
10 Day Avg. Volume585,752
30 Day Avg. Volume727,141
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 Cap5.06
Enterprise Value/Revenue0.52
Enterprise Value/Gross Profit1.14
Enterprise Value/Ebitda9.56
Forecast
1Y Price Target
$6.75Price Target Upside18.01% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)0.46
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 primarily makes money through the sale of footwear and accessories to consumers via its retail and e-commerce channels. Its core revenue stream is retail sales from company-operated stores and online platforms, where it sells a mix of national...
Designer Brands Earnings Call Summary
Earnings Call Date:Sep 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 08, 2026
Earnings Call Sentiment Positive
The call was predominantly positive. Despite a 1% consolidated sales decline, a 2.4% comparable-store sales decline, seasonal and athletic softness, and anticipated third-quarter profitability pressure, the company reported substantial year-to-date operating income growth, broad gross margin expansion, strong brand portfolio performance, lower debt, improving retail trends, and materially raised full-year sales and EPS guidance.Positive Updates
Significant Year-to-Date Profitability Improvement
Adjusted operating income was $58.8 million year to date, up $30 million and more than doubling the prior-year period, reflecting progress in strengthening underlying profitability.
Negative Updates
Consolidated Sales and Comparable Sales Decline
Second-quarter consolidated net sales decreased approximately 1% to $730.6 million, while comparable store sales declined 2.4%. Management said top-line performance was slightly below expectations.
Read all updates
Q2-2026 Updates
Positive
Negative
Significant Year-to-Date Profitability Improvement
Adjusted operating income was $58.8 million year to date, up $30 million and more than doubling the prior-year period, reflecting progress in strengthening underlying profitability.
Read all positive updates
Company Guidance
For fiscal 2026, Designer Brands now anticipates total company sales to be flat to up 1% versus last year, compared to its previous guidance of -1% to +1%; retail sales are expected to be flat to down slightly versus last year, with double-digit sales growth in the brand segment, while Keds is expected to deliver robust double-digit growth for full year 2026. The company now anticipates adjusted diluted EPS between $0.47 and $0.52, compared to its prior guidance of between $0.28 and $0.38 per diluted share, assuming an effective tax rate of approximately 41% and an average diluted share count of 57 million shares for the year. Topo is expected to generate over $100 million in 2027, and the company expects greater year-over-year pressure on profitability in the third quarter.Designer Brands Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
28
Negative
Cash Flow
61
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.89B | 2.89B | 3.01B | 3.07B | 3.32B | 3.20B |
| Gross Profit | 1.32B | 1.26B | 1.29B | 974.89M | 1.08B | 1.07B |
| EBITDA | 157.16M | 106.65M | 99.53M | 138.51M | 255.94M | 283.15M |
| Net Income | 16.94M | -8.37M | -10.55M | 29.06M | 162.68M | 154.48M |
Balance Sheet | ||||||
| Total Assets | 2.01B | 1.95B | 2.01B | 2.08B | 2.01B | 2.01B |
| Cash, Cash Equivalents and Short-Term Investments | 51.59M | 50.87M | 44.75M | 49.17M | 58.77M | 72.69M |
| Total Debt | 1.21B | 1.21B | 1.29B | 1.24B | 1.73B | 1.02B |
| Total Liabilities | 1.70B | 1.66B | 1.73B | 1.71B | 1.58B | 1.60B |
| Stockholders Equity | 301.12M | 282.49M | 278.49M | 359.22M | 429.75M | 412.40M |
Cash Flow | ||||||
| Free Cash Flow | 144.37M | 112.62M | 87.27M | 107.40M | 146.45M | 138.40M |
| Operating Cash Flow | 157.02M | 109.86M | 82.24M | 162.40M | 201.43M | 171.43M |
| Investing Cash Flow | -37.10M | -33.52M | -62.67M | -182.49M | -88.12M | -35.03M |
| Financing Cash Flow | -112.96M | -72.53M | -22.09M | 10.48M | -128.48M | -121.49M |
Designer Brands Technical Analysis
Negative
5.72
Price Trends
5.93
Negative
6.17
Negative
6.45
Negative
Market Momentum
<0.01
Positive
42.46
Neutral
12.37
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 5.72 is below the 20-day moving average (MA) of 6.09, below the 50-day MA of 5.93, and below the 200-day MA of 6.45, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 42.46 is Neutral, neither overbought nor oversold. The STOCH value of 12.37 is Positive, 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 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% | |
59 Neutral | $152.02M | 25.00 | 3.54% | ― | -8.63% | ― | |
57 Neutral | $297.03M | 17.61 | 5.83% | 3.51% | -0.84% | ― | |
49 Neutral | $242.32M | -26.88 | 4.27% | ― | -11.16% | -384.28% | |
40 Underperform | $29.13M | -0.22 | 172.19% | 4.14% | -15.92% | -590.26% |
* Consumer Cyclical Sector Average
DBI
Designer Brands
5.81
2.57
79.27%
PLCE
Children's Place
1.31
-6.43
-83.07%
DLTH
Duluth Holdings
4.00
0.58
16.96%
CURV
Torrid Holdings
2.43
0.90
58.82%
Designer Brands Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Designer Brands Declares Quarterly Dividend Amid Strengthening Performance
Positive
Sep 10, 2026
On September 9, 2026, Designer Brands’ board approved a quarterly cash dividend of $0.05 per share for its Class A and Class B common shares, payable on October 7, 2026 to shareholders of record as of September 24, 2026. This return of capit...
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...
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.