Designer Brands Stock: A Deep Dive Into Analyst Perspectives (5 Ratings)

Across the recent three months, 5 analysts have shared their insights on Designer Brands DBI, expressing a variety of opinions spanning from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Designer Brands, presenting an average target of $5.3, a high estimate of $6.00, and a low estimate of $4.50. Experiencing a 1.85% decline, the current average is now lower than the previous average price target of $5.40.

Deciphering Analyst Ratings: An In-Depth Analysis

A clear picture of Designer Brands's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Designer Brands. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Designer Brands compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Designer Brands's stock. This examination reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Designer Brands's market standing. Stay informed and make well-considered decisions with our Ratings Table.

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Unveiling the Story Behind Designer Brands

Designer Brands Inc is a designer, producer, and retailer of footwear and accessories. The company operates in three reportable segments: the U.S. Retail segment, the Canada Retail segment and the Brand Portfolio segment. The U.S. Retail segment operates the DSW Designer Shoe Warehouse banner through its direct-to-consumer U.S. stores and e-commerce site. The Canada Retail segment operates The Shoe Company and DSW banners through its direct-to-consumer Canada stores and e-commerce sites. The Brand Portfolio segment earns revenue from the sale of wholesale products to retailers, commissions for serving retailers as the design and buying agent for products under private labels, and the sale of branded products through its direct-to-consumer e-commerce sites.

Breaking Down Designer Brands's Financial Performance

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Designer Brands's revenue growth over a period of 3M has faced challenges. As of 31 January, 2025, the company experienced a revenue decline of approximately -5.41%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Net Margin: Designer Brands's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -5.35% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Designer Brands's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -12.79%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Designer Brands's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -1.87%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: With a high debt-to-equity ratio of 4.62, Designer Brands faces challenges in effectively managing its debt levels, indicating potential financial strain.

The Core of Analyst Ratings: What Every Investor Should Know

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.