Earnings Preview: Designer Brands
Designer Brands (NYSE:DBI) is gearing up to announce its quarterly earnings on Tuesday, 2025-12-09. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Designer Brands will report an earnings per share (EPS) of $0.18.
The market awaits Designer Brands's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Past Earnings Performance
During the last quarter, the company reported an EPS beat by $0.12, leading to a 6.82% increase in the share price on the subsequent day.
Here's a look at Designer Brands's past performance and the resulting price change:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.22 | -0.06 | -0.49 | 0.35 |
| EPS Actual | 0.34 | -0.26 | -0.44 | 0.27 |
| Price Change % | 7.00 | -16.00 | 0.00 | -4.00 |
Tracking Designer Brands's Stock Performance
Shares of Designer Brands were trading at $4.88 as of December 05. Over the last 52-week period, shares are down 19.38%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.
Insights Shared by Analysts on Designer Brands
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Designer Brands.
With 4 analyst ratings, Designer Brands has a consensus rating of Neutral. The average one-year price target is $4.62, indicating a potential 5.33% downside.
Comparing Ratings with Peers
In this comparison, we explore the analyst ratings and average 1-year price targets of Genesco, J.Jill and Citi Trends, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Genesco, with an average 1-year price target of $27.0, suggesting a potential 453.28% upside.
- Analysts currently favor an Buy trajectory for J.Jill, with an average 1-year price target of $21.5, suggesting a potential 340.57% upside.
- Analysts currently favor an Buy trajectory for Citi Trends, with an average 1-year price target of $47.5, suggesting a potential 873.36% upside.
Key Findings: Peer Analysis Summary
The peer analysis summary outlines pivotal metrics for Genesco, J.Jill and Citi Trends, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Designer Brands | Neutral | -4.16% | $322.93M | 3.95% |
| Genesco | Neutral | 12.87% | $249.95M | 1.05% |
| J.Jill | Buy | -0.81% | $105.36M | 9.01% |
| Citi Trends | Buy | 3.32% | $76.27M | -6.24% |
Key Takeaway:
Designer Brands is positioned in the middle among its peers for revenue growth, with one peer showing negative growth and another with higher growth. In terms of gross profit, Designer Brands ranks at the top among its peers. For return on equity, Designer Brands is also at the top compared to its peers.
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 Financial Performance
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 Challenges: Designer Brands's revenue growth over 3 months faced difficulties. As of 31 July, 2025, the company experienced a decline of approximately -4.16%. This indicates a decrease in 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 falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 1.46%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Designer Brands's ROE excels beyond industry benchmarks, reaching 3.95%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Designer Brands's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.52%, the company may face hurdles in achieving optimal financial returns.
Debt Management: Designer Brands's debt-to-equity ratio surpasses industry norms, standing at 4.7. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
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.