Designer Brands Inc.
$8.72
+1.6%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. The company offers its products under the Vince Camuto, Louise et Cie, Jessica Simpson, Lucky, JLO Jenifer Lopez, and other brands. It also operates vincecamuto.com e-commerce site, as well as www.dsw.com, www.dsw.ca, and www.theshoecompany.ca websites; and a portfolio of banners, including DSW Designer Shoe Warehouse, The Shoe Company, and Shoe Warehouse. As of January 29, 2022, it operated 648 stores. Designer Brands Inc. was founded in 1991 and is based in Columbus, Ohio.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -51.3).
Valuation inputs: P/E -51.3, earnings yield N/A, momentum +1.6%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -3.0%, ROIC -14.1%).
Profitability stack: net margin -0.3%, ROE -3.0%, ROIC -14.1%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +85.2%, momentum +1.6%, net margin -0.3%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Designer Brands Inc. Market vs Earnings Trajectory
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Designer Brands Inc. Fair Value Envelope
Designer Brands Inc. Profit Bridge
Profitability Analysis
Gross Margin
Strong gross margins indicate healthy pricing and efficient production or service delivery.
Operating Margin
Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Effective Tax Rate
Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Designer Brands Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Designer Brands Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Positive working capital, but relatively tight. The company should monitor cash flow carefully.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Designer Brands Inc. Street Expectations Map
Wall Street analysts project that DBI stock may decline over the coming 12 months. The consensus 1-year price target stands at 7.50, with estimates ranging from a low of 7.00 to a high of 8.00.
The consensus 1-year price target stands at 7.50, with estimates ranging from a low of 7.00 to a high of 8.00.
Analyst Consensus Analysis
Upside Potential
Downside risk. Current price above analyst targets indicates potential overvaluation. Exercise caution and review catalysts.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Risk-Reward Profile
Unfavorable risk-reward. Downside risk exceeds upside potential. Consider defensive positioning or alternative opportunities.
Analyst Conviction
Bearish or uncertain outlook. Limited upside or poor consensus suggests challenges ahead or fundamental concerns.
Market Sentiment Insight
Consensus overvaluation: Analysts agree the stock is richly valued with limited upside. Consider booking profits or defensive positioning unless you have contrarian conviction in unrecognized catalysts.
Designer Brands Inc. Insider Positioning
During the last 12 months, insiders have sold $1.53M worth of DBI shares, with no buying activity reported.
3 Months
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3-6 Months
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0.00
155.4K
1.25M
-1.3M
-$1.25M
6-9 Months
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0.00
61.2K
279.85K
-280K
-$280K
9-12 Months
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Top Buyers
No buying activity
Top Sellers
Ferree Deborah L
Director, Officer: V. Chair; Ch Product Off
$1.15M
Sonnenberg Harvey L
Director
$226K
Lau Joanna T
Director
$105K
Haley Mark
Officer: Svp, Controller And Pao
$54K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $1.53M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Insider Participation
4 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.
dbi Dividend History
Learning Layer
Related Guides
Build conviction on DBI by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.