Last Updated: 14 Nov 2024
Executive Summary
Designer Brands Inc. (DBI) is a footwear and accessories retailer with a market capitalization of $284.71 million. The company has been facing challenges in recent quarters, with negative EPS and a decline in quarterly earnings growth year-over-year. However, the company's forward PE ratio of 7.28 suggests that it may be undervalued, and analysts have given it a hold rating.
Company Overview
Designer Brands Inc. designs, manufactures, and retails women's, men's, and children's footwear and accessories primarily in North America. The company operates through two segments: Retail and Wholesale. The Retail segment includes DSW Designer Shoe Warehouse, The Shoe Company, and Shoe Warehouse stores. The Wholesale segment includes the sale of footwear and accessories to department stores, specialty stores, and e-commerce retailers.
Fundamental Analysis
Revenue: DBI's revenue for the trailing twelve months (TTM) was $3,059.17 million, a 0.026% decrease from the same period last year.
Gross Profit: The company's gross profit for the TTM was $1,079.23 million, a 0.026% decrease from the same period last year.
Net Income: DBI reported a net loss of $4.99 million for the TTM, compared to a net income of $11.39 million for the same period last year.
EPS: The company's diluted EPS for the TTM was -$0.03, compared to $0.19 for the same period last year.
Profit Margin: DBI's profit margin for the TTM was -0.0016, compared to 0.0037 for the same period last year.
Technical Analysis
52-Week High: $12.61
52-Week Low: $4.328
50-Day Moving Average: $5.98
200-Day Moving Average: $8.03
DBI's stock price is currently trading below its 50-day and 200-day moving averages, indicating a downtrend. The stock is also trading below its 52-week high and above its 52-week low.
Short Term Outlook
In the short term, DBI's stock price is likely to continue to trade in a range between $4.328 and $5.98. The stock may face resistance at the $5.98 level, which is the 50-day moving average. If the stock breaks below the $4.328 level, it could fall to the $3.00 level.
Long Term Outlook
In the long term, DBI's stock price is likely to be driven by the company's financial performance. If the company can improve its profitability and grow its revenue, the stock price could rise. However, if the company continues to face challenges, the stock price could decline.
Analyst Recommendations
Analysts have given DBI a hold rating, with a target price of $5.75. This suggests that analysts believe that the stock is fairly valued and that there is limited upside potential.
