Designer Brands Earnings Preview

Designer Brands DBI is preparing to release its quarterly earnings on Tuesday, 2025-06-10. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Designer Brands to report an earnings per share (EPS) of $-0.06.

Anticipation surrounds Designer Brands's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Overview of Past Earnings

The company's EPS beat by $0.05 in the last quarter, leading to a 0.0% drop in the share price on the following day.

Here's a look at Designer Brands's past performance and the resulting price change:

Stock Performance

Shares of Designer Brands were trading at $3.82 as of June 06. Over the last 52-week period, shares are down 45.25%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Insights Shared by Analysts on Designer Brands

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Designer Brands.

The consensus rating for Designer Brands is Neutral, derived from 5 analyst ratings. An average one-year price target of $5.3 implies a potential 38.74% upside.

Comparing Ratings Among Industry Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of a.k.a. Brands Holding, Lands' End and Genesco, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for a.k.a. Brands Holding, with an average 1-year price target of $21.8, suggesting a potential 470.68% upside.
• Analysts currently favor an Buy trajectory for Lands' End, with an average 1-year price target of $20.0, suggesting a potential 423.56% upside.
• Analysts currently favor an Neutral trajectory for Genesco, with an average 1-year price target of $24.0, suggesting a potential 528.27% upside.

Insights: Peer Analysis

Within the peer analysis summary, vital metrics for a.k.a. Brands Holding, Lands' End and Genesco are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Designer Brands is positioned in the middle among its peers for consensus rating. It ranks at the bottom for revenue growth and gross profit, indicating lower performance in these areas. However, it shows a better return on equity compared to its peers, placing it at the top in this metric.

Get to Know Designer Brands Better

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.

Understanding the Numbers: Designer Brands's Finances

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Decline in Revenue: Over the 3 months period, Designer Brands faced challenges, resulting in a decline of approximately -5.41% in revenue growth as of 31 January, 2025. This signifies a reduction in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

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 falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -12.79%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -1.87%, the company may need to address challenges in generating 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.

To track all earnings releases for Designer Brands visit their earnings calendar on our site.

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