NYSE:DBI

Stock Analysis Report

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Executive Summary

Designer Brands Inc., together with its subsidiaries, designs, manufactures, and retails footwear and accessories for women, men, and kids primarily in North America. More Details


Snowflake Analysis

High growth potential 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

13.5%

DBI

2.9%

US Specialty Retail

1.8%

US Market


1 Year Return

-60.3%

DBI

24.3%

US Specialty Retail

14.2%

US Market

Return vs Industry: DBI underperformed the US Specialty Retail industry which returned 24.3% over the past year.

Return vs Market: DBI underperformed the US Market which returned 14.2% over the past year.


Shareholder returns

DBIIndustryMarket
7 Day13.5%2.9%1.8%
30 Day-1.6%0.9%0.04%
90 Day0.9%19.0%9.8%
1 Year-59.1%-60.3%25.7%24.3%16.7%14.2%
3 Year-63.0%-67.2%82.0%73.9%41.6%32.2%
5 Year-69.6%-75.0%67.6%54.5%90.9%69.5%

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 ($6.72) is trading below our estimate of fair value ($32.72)

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


Price To Earnings Ratio

PE vs Industry: DBI is unprofitable, so we can't compare its PE Ratio to the US Specialty Retail industry average.

PE vs Market: DBI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DBI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DBI is good value based on its PB Ratio (1.2x) compared to the US Specialty Retail industry average (1.9x).


Next Steps

Future Growth

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

137.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DBI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: DBI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DBI's is expected to become profitable in the next 3 years.

Revenue vs Market: DBI's revenue (21.7% per year) is forecast to grow faster than the US market (9.7% per year).

High Growth Revenue: DBI's revenue (21.7% per year) is forecast to grow faster 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 (12.1%).


Next Steps

Past Performance

How has Designer Brands performed over the past 5 years?

-52.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DBI is currently unprofitable.

Growing Profit Margin: DBI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DBI is unprofitable, and losses have increased over the past 5 years at a rate of 52.2% per year.

Accelerating Growth: Unable to compare DBI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DBI is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (-4.8%).


Return on Equity

High ROE: DBI has a negative Return on Equity (-68.41%), as it is currently unprofitable.


Next Steps

Financial Health

How is Designer Brands's financial position?


Financial Position Analysis

Short Term Liabilities: DBI's short term assets ($770.5M) exceed its short term liabilities ($669.2M).

Long Term Liabilities: DBI's short term assets ($770.5M) do not cover its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: DBI's debt to equity ratio (96.6%) is considered high.

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 (21.1%).

Interest Coverage: Insufficient data to determine if DBI's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

6.45%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DBI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DBI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DBI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DBI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: DBI is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DBI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Roger Rawlins (53 yo)

4.67yrs

Tenure

US$7,288,480

Compensation

Mr. Roger L. Rawlins is Interim President of DSW Shoe Warehouse, Inc. since February 18, 2020. He serves as Chief Executive Officer of Designer Brands since January 2016. Mr. Rawlins serves as Director at ...


CEO Compensation Analysis

Compensation vs Market: Roger's total compensation ($USD7.29M) is above average for companies of similar size in the US market ($USD2.02M).

Compensation vs Earnings: Roger's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jay Schottenstein
Executive Chairman15.5yrsUS$3.27m12.92%
$ 62.8m
Roger Rawlins
CEO & Director4.67yrsUS$7.29m0.22%
$ 1.1m
Deborah Ferrée
Vice Chairman & President1.58yrsUS$4.03m0.30%
$ 1.4m
Jared Poff
Executive VP & CFO3.83yrsUS$1.33m0.076%
$ 367.5k
William Jordan
Executive VP & Chief Growth Officer12.33yrsUS$1.90m0.12%
$ 585.5k
Drew Domecq
Executive VP & Chief Information Officer2.42yrsno data0.013%
$ 63.8k
Christina Cheng
Senior Director of Investor Relationsno datano datano data
Michelle Krall
Senior VPno datano datano data
Margaret Standing
Director of Corporate Communicationsno datano datano data
Mary Turner
Executive Vice President0.50yrno data0.0041%
$ 19.9k

3.1yrs

Average Tenure

53yo

Average Age

Experienced Management: DBI's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jay Schottenstein
Executive Chairman15.5yrsUS$3.27m12.92%
$ 62.8m
Roger Rawlins
CEO & Director4.67yrsUS$7.29m0.22%
$ 1.1m
Elaine Eisenman
Independent Director12.5yrsUS$245.00k0.022%
$ 104.6k
Joanna Lau
Independent Director12.5yrsUS$285.00k0.069%
$ 335.7k
Joanne Zaiac
Independent Director4yrsUS$245.00k0.048%
$ 233.6k
Allan Tanenbaum
Independent Director15.67yrsUS$265.00k0.054%
$ 263.4k
Harvey Sonnenberg
Independent Director15.25yrsUS$265.00k0.036%
$ 173.2k
Peter Cobb
Independent Director3.08yrsUS$245.00k0%
$ 0
Joseph Schottenstein
Inside Director7.75yrsUS$219.49k0.17%
$ 820.4k
Ekta Singh-Bushell
Independent Director2yrsUS$250.00k0%
$ 0

10.1yrs

Average Tenure

61.5yo

Average Age

Experienced Board: DBI's board of directors are seasoned and experienced ( 10.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$486.017m
  • Shares outstanding: 72.32m
  • 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., together with its subsidiaries, designs, manufactures, and retails footwear and accessories for women, men, and kids primarily in North America. It operates through three segments: U. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/18 06:01
End of Day Share Price2020/09/17 00:00
Earnings2020/08/01
Annual Earnings2020/02/01


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.