Analyst Lowers Expectations For Designer Brands Before Earnings Amid Expected Sales Decline - Designer Brands (NYSE:DBI)

Telsey Advisory Group analyst Dana Telsey reiterated a Market Perform rating on the shares of Designer Brands Inc DBI and lowered the price target from $12 to $8.
The company will report first-quarter results on Thursday, June 8, before the market opens.
The analyst reduced estimates for 1Q23, to reflect anticipated consumer demand weakness brought on by continued macro headwinds across the broader retail landscape.
The analyst expects EPS of $0.25, down from the previous estimate of $0.33, and sales to decline 8.6% Y/Y to $759 million.
The analyst lowers the FY23 EPS estimate to $1.65 from $1.70, and sales to decline 4.1% Y/Y to $3.1 billion, down from the prior estimate of $3.21 billion.
Given the top and bottom-line declines planned for FY23, DBI anticipates macro and inflationary pressures to persist through 1H before recovering in H2.
The analyst added that while near-term pressures continue to impact DBI's business, the company's long-range plan remains intact.
Price Action: DBI shares are trading higher by 6.77% at $6.87 on the last check Tuesday.