Insights Ahead: Designer Brands's Quarterly Earnings

Designer Brands (NYSE:DBI) will release its quarterly earnings report on Tuesday, 2025-09-09. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Designer Brands to report an earnings per share (EPS) of $0.22.

Designer Brands bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Historical Earnings Performance

In the previous earnings release, the company missed EPS by $0.20, leading to a 15.74% drop in the share price the following trading session.

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

Quarter Q1 2025 Q4 2024 Q3 2024 Q2 2024
EPS Estimate -0.06 -0.49 0.35 0.53
EPS Actual -0.26 -0.44 0.27 0.29
Price Change % -16.0% 0.0% -4.0% 1.0%

Tracking Designer Brands's Stock Performance

Shares of Designer Brands were trading at $4.73 as of September 05. Over the last 52-week period, shares are down 26.16%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analyst Observations about Designer Brands

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Designer Brands.

Analysts have provided Designer Brands with 5 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $4.0, suggesting a potential 15.43% downside.

Peer Ratings Overview

This comparison focuses on the analyst ratings and average 1-year price targets of J.Jill, Citi Trends and Genesco, three major players in the industry, shedding light on their relative performance expectations and market positioning.

  • Analysts currently favor an Neutral trajectory for J.Jill, with an average 1-year price target of $18.0, suggesting a potential 280.55% upside.
  • Analysts currently favor an Buy trajectory for Citi Trends, with an average 1-year price target of $43.0, suggesting a potential 809.09% upside.
  • Analysts currently favor an Neutral trajectory for Genesco, with an average 1-year price target of $32.67, suggesting a potential 590.7% upside.

Snapshot: Peer Analysis

The peer analysis summary provides a snapshot of key metrics for J.Jill, Citi Trends and Genesco, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Company Consensus Revenue Growth Gross Profit Return on Equity
Designer Brands Neutral -7.99% $295.13M -6.39%
J.Jill Neutral -0.81% $105.36M 9.01%
Citi Trends Buy -5.44% $79.81M 3.44%
Genesco Neutral 15.19% $221.18M -3.59%

Key Takeaway:

Designer Brands is positioned at the bottom for Revenue Growth and Gross Profit among its peers. However, it ranks in the middle for Return on Equity.

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: Financial Performance Dissected

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Designer Brands's revenue growth over a period of 3 months has faced challenges. As of 30 April, 2025, the company experienced a revenue decline of approximately -7.99%. 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: Designer Brands's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -2.54%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Designer Brands's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -6.39%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -0.85%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Designer Brands's debt-to-equity ratio is notably higher than the industry average. With a ratio of 5.0, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

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.

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