GICS Sector : Consumer Cyclical
Designer Brands Inc., together with its subsidiaries, designs, manufactures, and retails footwear and accessories for women, men, and kids primarily in North America.The company operates through three segments: U.S. Retail, Canada Retail, and Brand Portfolio.It provides dress, casual, and athletic footwear; and handbags.
Designer Brands Inc. reported a 4% year-over-year sales decline in Q2 2025, with comparable sales down 5%, an improvement from Q1’s 8% drop. Earnings per share (EPS) came in at $0.34, beating estimates of $0.22. Gross margin dipped 30 basis points to 43.7%. Net income was $16.7M, down slightly from the previous year. Inventory dropped 5%, and debt was reduced to $476.1M.
Publication Date: Sep -13
The company saw improvements in store traffic and conversion rates, with women's dresses and top eight brands outperforming. The "Let Us Surprise You" marketing campaign aimed to reinforce store differentiation. Strategic initiatives included brand repositioning, a new Framingham store with advanced tech features, and digital fulfillment optimization. Partnerships like DoorDash boosted new customer acquisition.
Adjusted operating expenses decreased $14M year-over-year, driving 350-basis-point expense leverage. With a current P/E Ratio of -6.96 and P/S Ratio of 0.08, the market reflects the challenges faced by the company. The Free Cash Flow Yield stands at 19.44%, indicating potential for investors. The company’s ROE is -11.1%, and ROIC is 0.77%, highlighting the need for operational improvement.
Tariff uncertainties and consumer caution prompted the company to withhold 2025 guidance. Despite this, executives remain cautiously optimistic about the remainder of 2025, citing sequential progress and cost discipline. The brand portfolio segment saw a 24% decline due to lower internal sales but recorded 7% wholesale growth, led by Topo Athletic’s 45% sales increase.
Designer Brands Inc. Announces Third Quarter 2025 Earnings Release Date
Nov -18
DBI Investor News: If You Have Suffered Losses in Designer Brands Inc. (NYSE: DBI), You Are Encouraged to Contact The Rosen Law Firm About Your Rights
Oct -27
Rosen Law Firm Encourages Designer Brands Inc. Investors to Inquire About Securities Class Action Investigation - DBI
Oct -26
DBI Investor News: If You Have Suffered Losses in Designer Brands Inc. (NYSE: DBI), You Are Encouraged to Contact The Rosen Law Firm About Your Rights
Oct -24
DBI Investor News: If You Have Suffered Losses in Designer Brands Inc. (NYSE: DBI), You Are Encouraged to Contact The Rosen Law Firm About Your Rights
Oct -21
Rosen Law Firm Encourages Designer Brands Inc. Investors to Inquire About Securities Class Action Investigation - DBI
Oct -21
DBI Investor News: If You Have Suffered Losses in Designer Brands Inc. (NYSE: DBI), You Are Encouraged to Contact The Rosen Law Firm About Your Rights
Oct -18
Designer Brands Inc. Announces CFO Transition Process
Oct -08
The 2% growth in United States Retail from Designer Brands Inc. is driven by increasing demand for affordable luxury footwear, successful brand revamps, and strategic store remodels. Additionally, the company's focus on omnichannel retailing and loyalty programs has enhanced customer engagement, contributing to the segment's growth.
Designer Brands Inc.'s 3% brand portfolio growth is driven by strategic acquisitions, expanding e-commerce presence, and effective marketing campaigns. The company's focus on omnichannel retailing, product innovation, and strong relationships with suppliers also contribute to its growth. Additionally, the increasing demand for affordable luxury and athleisure products benefits the company's portfolio of brands, including Vince Camuto and DSW.
Canada Retail segment of Designer Brands Inc. growth driven by increasing demand for affordable luxury footwear, successful marketing campaigns, and strategic store expansions in high-traffic locations, resulting in a 1% growth rate.
A leading footwear retailer offering a wide selection of brand-name and designer shoes for men, women, and kids.
A Canadian footwear retailer offering a wide selection of brand-name shoes for men, women, and kids.
A footwear retailer offering a wide selection of brand-name shoes for men, women, and kids, with a focus on value and convenience.
A footwear brand offering comfortable and stylish shoes for people with disabilities or special needs.
A portfolio of private footwear brands, including Audrey Brooke, Kelly & Katie, and others.
A leading footwear design, development, and sourcing company, offering private label and branded footwear solutions.
Designer Brands Inc. faces moderate threat from substitutes as customers have limited alternatives for branded footwear and accessories. However, the rise of online shopping and changing consumer preferences may lead to increased competition from new entrants.
Designer Brands Inc. has a high bargaining power of customers due to the presence of online retailers and changing consumer preferences, which gives customers more options and bargaining power.
Designer Brands Inc. has a low bargaining power of suppliers due to its large scale of operations and diversified supplier base, which gives it more negotiating power.
Designer Brands Inc. faces a moderate threat from new entrants due to the presence of online platforms and changing consumer preferences, which makes it easier for new entrants to enter the market.
Designer Brands Inc. operates in a highly competitive industry with many established players, leading to a high intensity of rivalry among competitors.
| Value | |
|---|---|
| Debt Weight | 62.30% |
| Debt Cost | 3.95% |
| Equity Weight | 37.70% |
| Equity Cost | 14.39% |
| WACC | 7.88% |
| Leverage | 165.25% |
Value: 8.7
Growth: 4.0
Quality: 6.3
Yield: 2.0
Momentum: 0.5
Volatility: 4.0
1-Year Total Return ->
Value: 9.8
Growth: 2.8
Quality: 3.8
Yield: 6.0
Momentum: 1.5
Volatility: 1.3
1-Year Total Return ->
Value: 6.8
Growth: 1.7
Quality: 1.8
Yield: 0.0
Momentum: 8.5
Volatility: 2.7
1-Year Total Return ->
Value: 7.2
Growth: 3.0
Quality: 2.7
Yield: 0.0
Momentum: 6.0
Volatility: 2.3
1-Year Total Return ->
Value: 9.6
Growth: 3.9
Quality: 4.0
Yield: 0.0
Momentum: 0.0
Volatility: 2.3
1-Year Total Return ->
Value: 1.9
Growth: 2.1
Quality: 5.1
Yield: 1.0
Momentum: 5.0
Volatility: 2.0
1-Year Total Return ->