NYSE:DBI

Stock Analysis Report

Executive Summary

Designer Brands Inc. designs, producers, and retails footwear and accessories for women, men, and kids primarily in North America.


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has Designer Brands's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DBI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

DBI

0.7%

US Specialty Retail

0.5%

US Market


1 Year Return

-44.6%

DBI

18.0%

US Specialty Retail

20.3%

US Market

Return vs Industry: DBI underperformed the US Specialty Retail industry which returned 18% over the past year.

Return vs Market: DBI underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

DBIIndustryMarket
7 Day-1.0%0.7%0.5%
30 Day-1.9%1.3%2.0%
90 Day-5.9%5.6%9.4%
1 Year-41.5%-44.6%19.8%18.0%22.8%20.3%
3 Year-15.6%-26.3%46.7%39.7%50.1%40.4%
5 Year-49.3%-58.3%50.8%38.5%73.1%54.1%

Price Volatility Vs. Market

How volatile is Designer Brands's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Designer Brands undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DBI ($15.47) is trading below our estimate of fair value ($54.22)

Significantly Below Fair Value: DBI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DBI is poor value based on its PE Ratio (20.7x) compared to the Specialty Retail industry average (16.7x).

PE vs Market: DBI is poor value based on its PE Ratio (20.7x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: DBI is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: DBI is overvalued based on its PB Ratio (1.5x) compared to the US Specialty Retail industry average (1.5x).


Next Steps

Future Growth

How is Designer Brands forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

26.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DBI's forecast earnings growth (26.2% per year) is above the savings rate (1.7%).

Earnings vs Market: DBI's earnings (26.2% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DBI's revenue (1.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: DBI's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DBI's Return on Equity is forecast to be low in 3 years time (14.7%).


Next Steps

Past Performance

How has Designer Brands performed over the past 5 years?

-33.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DBI has a large one-off loss of $82.5M impacting its November 2 2019 financial results.

Growing Profit Margin: DBI's current net profit margins (1.6%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: DBI's earnings have declined by -33.9% per year over the past 5 years.

Accelerating Growth: DBI's earnings growth over the past year (53%) exceeds its 5-year average (-33.9% per year).

Earnings vs Industry: DBI earnings growth over the past year (53%) exceeded the Specialty Retail industry 6.4%.


Return on Equity

High ROE: DBI's Return on Equity (7.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Designer Brands's financial position?


Financial Position Analysis

Short Term Liabilities: DBI's short term assets ($926.9M) exceed its short term liabilities ($641.8M).

Long Term Liabilities: DBI's short term assets ($926.9M) do not cover its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: DBI's debt to equity ratio (31.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if DBI's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: DBI's debt is well covered by operating cash flow (62.2%).

Interest Coverage: DBI's interest payments on its debt are well covered by EBIT (22.6x coverage).


Balance Sheet

Inventory Level: DBI has a high level of physical assets or inventory.

Debt Coverage by Assets: DBI's debt is covered by short term assets (assets are 3.9x debt).


Next Steps

Dividend

What is Designer Brands's current dividend yield, its reliability and sustainability?

6.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DBI's dividend (6.46%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: DBI's dividend (6.46%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

Stable Dividend: DBI has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: DBI's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (134.1%), DBI's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DBI's dividends in 3 years are forecast to be well covered by earnings (47.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Roger Rawlins (52yo)

4.1yrs

Tenure

US$8,273,914

Compensation

Mr. Roger L. Rawlins serves as Chief Executive Officer of Designer Brands since January 2016. Mr. Rawlins serves as Director at DSW Inc. (also known as Value City Department Stores Inc; Value City Departme ...


CEO Compensation Analysis

Compensation vs Market: Roger's total compensation ($USD8.27M) is above average for companies of similar size in the US market ($USD2.50M).

Compensation vs Earnings: Roger's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jay Schottenstein
Executive Chairman14.9yrsUS$3.99m12.58% $139.7m
Roger Rawlins
CEO & Director4.1yrsUS$8.27m0.15% $1.7m
Deborah Ferrée
Vice Chairman & President1yrsUS$6.95m0.22% $2.4m
Jared Poff
Executive VP & CFO3.3yrsUS$1.31m0.021% $228.3k
William Jordan
Executive Vice President & President of DSW11.8yrsUS$3.33m0.099% $1.1m
Drew Domecq
Executive VP & Chief Information Officer1.8yrsno data0.0064% $70.9k
Thomas Jessep
Executive VP & Chief Administration Officer1.1yrsno data0.015% $169.3k
Christina Cheng
Senior Director of Investor Relations0yrsno datano data
Margaret Standing
Director of Corporate Communications0yrsno datano data
Simon Nankervis
Executive Vice President4.1yrsno data0.023% $253.3k

3.3yrs

Average Tenure

52yo

Average Age

Experienced Management: DBI's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jay Schottenstein
Executive Chairman14.9yrsUS$3.99m12.58% $139.7m
Roger Rawlins
CEO & Director4.1yrsUS$8.27m0.15% $1.7m
Elaine Eisenman
Independent Director11.9yrsUS$245.00k0.022% $240.9k
Joanna Lau
Independent Director11.9yrsUS$290.00k0.036% $403.1k
Joanne Zaiac
Independent Director3.4yrsUS$245.00k0.015% $168.2k
Allan Tanenbaum
Independent Director15.1yrsUS$269.21k0.055% $606.4k
Harvey Sonnenberg
Independent Director14.7yrsUS$305.00k0.0026% $29.1k
Carolee Lee
Independent Director14.7yrsUS$255.00k0.0070% $78.3k
Peter Cobb
Independent Director2.5yrsUS$275.00kno data
Joseph Schottenstein
Inside Director7.2yrsUS$230.00k0.13% $1.4m

11.9yrs

Average Tenure

63yo

Average Age

Experienced Board: DBI's board of directors are seasoned and experienced ( 11.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DBI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Designer Brands Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Designer Brands Inc.
  • Ticker: DBI
  • Exchange: NYSE
  • Founded:
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: US$1.110b
  • Shares outstanding: 71.75m
  • Website: https://www.designerbrands.com

Number of Employees


Location

  • Designer Brands Inc.
  • 810 DSW Drive
  • Columbus
  • Ohio
  • 43219
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DBINYSE (New York Stock Exchange)YesClass A Common SharesUSUSDMay 2011
D9WDB (Deutsche Boerse AG)YesClass A Common SharesDEEURMay 2011
0A1DLSE (London Stock Exchange)YesClass A Common SharesGBEURMay 2011

Biography

Designer Brands Inc. designs, producers, and retails footwear and accessories for women, men, and kids primarily in North America. It operates through three segments: The U.S. Retail, the Canada Retail, and the Brand Portfolio. The company also provides handbags, hosiery, jewelry, and other accessories. The company offers its products under the Vince Camuto, Louise et Cie, Sole Society, CC Corso Como, Enzo Angiolini, Jessica Simpson, Lucky, and other brands. It operates vincecamuto.com and solesociety.com e-commerce sites. As of March 19, 2019, it operated a portfolio of retail concepts in approximately 1,000 locations under the DSW Designer Shoe Warehouse, The Shoe Company, and Shoe Warehouse banners. Designer Brands Inc. is based in Columbus, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 02:03
End of Day Share Price2020/02/19 00:00
Earnings2019/11/02
Annual Earnings2019/02/02


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.