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

Fundamentals

Adequate balance sheet with moderate growth potential.


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


Market Performance


7 Day Return

-2.9%

DBI

1.5%

US Specialty Retail

0.4%

US Market


1 Year Return

-34.9%

DBI

8.0%

US Specialty Retail

6.9%

US Market

Return vs Industry: DBI underperformed the US Specialty Retail industry which returned 8% over the past year.

Return vs Market: DBI underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

DBIIndustryMarket
7 Day-2.9%1.5%0.4%
30 Day-4.2%3.2%-1.2%
90 Day-13.0%4.4%-0.4%
1 Year-31.6%-34.9%9.8%8.0%9.3%6.9%
3 Year-11.4%-22.0%42.6%35.3%45.8%36.4%
5 Year-35.7%-46.6%57.5%43.6%62.9%45.1%

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?

38.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: DBI ($16.37) is trading below our estimate of fair value ($26.53)

Significantly Undervalued: DBI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DBI is poor value based on its PE Ratio (24.3x) compared to the Specialty Retail industry average (15.4x).

PE vs Market: DBI is poor value based on its PE Ratio (24.3x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low 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 (1.6x) compared to the US Specialty Retail industry average (1.4x).


Next Steps

Future Growth

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

31.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DBI's forecast earnings growth (31.8% per year) is above the savings rate (2.7%).

Earnings vs Market: DBI's earnings (31.8% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: DBI's revenue (2.5% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: DBI's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: DBI's Return on Equity is forecast to be low in 3 years time (17.3%).


Next Steps

Past Performance

How has Designer Brands performed over the past 5 years?

-33.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DBI's earnings have declined by -33.5% per year over the past 5 years.

Accelerating Growth: DBI's earnings growth over the past year (1881.1%) exceeds its 5-year average (-33.5% per year).

Earnings vs Industry: DBI earnings growth over the past year (1881.1%) exceeded the Specialty Retail industry 8.3%.


Return on Equity

High ROE: DBI's Return on Equity (7.2%) is considered low.


Return on Assets

ROA vs Industry: DBI's Return on Assets is below or equal to the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: DBI's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Designer Brands's financial position?


Financial Position Analysis

Short Term Liabilities: DBI's short term assets ($924.2M) exceeds its short term liabilities ($648.9M)

Long Term Liabilities: DBI's short term assets (924.2M) do not cover its long term liabilities (1.2B)


Debt to Equity History and Analysis

Debt Level: DBI's debt to equity ratio (32.2%) 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 (43.8%).

Interest Coverage: DBI's interest payments on its debt are well covered by EBIT (40.6x 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 3.932580x debt).


Next Steps

Dividend

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

6.11%

Current Dividend Yield


Dividend Yield vs Market

company6.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years6.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: DBI's dividend (6.11%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: DBI's dividend (6.11%) is in the top 25% of dividend payers in the US market (3.73%)

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 (148.6%), 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 (42.1% payout ratio).


Next Steps

Management

What is the CEO of Designer Brands's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Roger Rawlins (52yo)

3.8yrs

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 ($USD8.27M) is above average for companies of similar size in the US market ($USD2.69M).

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


Management Age and Tenure

2.9yrs

Average Tenure

52yo

Average Age

Experienced Management: DBI's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

11.6yrs

Average Tenure

63yo

Average Age

Experienced Board: DBI's board of directors are seasoned and experienced ( 11.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$167,40001 Oct 19
Harvey Sonnenberg
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$16.74
SellUS$70,57102 Jul 19
Joanne Zaiac
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,688
Max PriceUS$19.14
SellUS$144,93010 Jun 19
Harvey Sonnenberg
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,924
Max PriceUS$18.29
SellUS$109,49319 Dec 18
Carolee Lee
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,531.28
Max PriceUS$24.17
SellUS$69,74917 Dec 18
Joanne Zaiac
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,770
Max PriceUS$25.18
SellUS$141,27013 Dec 18
Harvey Sonnenberg
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,540
Max PriceUS$25.50

Ownership Breakdown


Management Team

  • Jay Schottenstein (65yo)

    Executive Chairman

    • Tenure: 14.6yrs
    • Compensation: US$3.99m
  • Debbie Ferrée (65yo)

    Vice Chairman & President

    • Tenure: 0.7yrs
    • Compensation: US$6.95m
  • Bill Jordan (47yo)

    Executive Vice President & President of DSW

    • Tenure: 11.4yrs
    • Compensation: US$3.33m
  • Roger Rawlins (52yo)

    CEO & Director

    • Tenure: 3.8yrs
    • Compensation: US$8.27m
  • Christina Cheng

    Senior Director of Investor Relations

    • Tenure: 0yrs
  • Simon Nankervis (52yo)

    Executive Vice President

    • Tenure: 3.8yrs
  • Jared Poff (46yo)

    Executive VP & CFO

    • Tenure: 2.9yrs
    • Compensation: US$1.31m
  • Drew Domecq (45yo)

    Executive VP & Chief Information Officer

    • Tenure: 1.5yrs
  • Margaret Standing

    Director of Corporate Communications

    • Tenure: 0yrs
  • Thomas Jessep

    Senior VP & Chief Administrative Officer

    • Tenure: 0.8yrs

Board Members

  • Elaine Eisenman (69yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$245.00k
  • Jay Schottenstein (65yo)

    Executive Chairman

    • Tenure: 14.6yrs
    • Compensation: US$3.99m
  • Joanna Lau (60yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$290.00k
  • Joanne Zaiac (57yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$245.00k
  • Allan Tanenbaum (72yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$269.21k
  • Harvey Sonnenberg (77yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$305.00k
  • Friedlander Lee (77yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$255.00k
  • Peter Cobb (61yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$275.00k
  • Joseph Schottenstein (40yo)

    Inside Director

    • Tenure: 6.8yrs
    • Compensation: US$230.00k
  • Roger Rawlins (52yo)

    CEO & Director

    • Tenure: 3.8yrs
    • Compensation: US$8.27m

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$1.189b
  • Shares outstanding: 72.64m
  • 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, an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 00:21
End of Day Share Price2019/10/18 00:00
Earnings2019/08/03
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.