Designer Brands Stock: A Deep Dive Into Analyst Perspectives (4 Ratings)

In the preceding three months, 4 analysts have released ratings for Designer Brands DBI, presenting a wide array of perspectives from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $5.38, a high estimate of $6.00, and a low estimate of $4.50. Experiencing a 2.18% decline, the current average is now lower than the previous average price target of $5.50.

Exploring Analyst Ratings: An In-Depth Overview

The perception of Designer Brands by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Designer Brands. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Designer Brands compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Designer Brands's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

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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All You Need to Know About 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.

Designer Brands's Economic Impact: An Analysis

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Designer Brands's revenue growth over a period of 3 months has faced challenges. As of 31 October, 2024, the company experienced a revenue decline of approximately -1.16%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 1.67%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Designer Brands's ROE excels beyond industry benchmarks, reaching 3.86%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Designer Brands's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.62%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: With a high debt-to-equity ratio of 4.19, Designer Brands faces challenges in effectively managing its debt levels, indicating potential financial strain.

Understanding the Relevance of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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