Designer Brands (DBI) Q1 Earnings Report Preview: What To Look For

Jabin Bastian /
2024/06/03 3:01 am EDT

Footwear and accessories discount retailer Designer Brands (NYSE:DBI) will be reporting results tomorrow morning. Here's what investors should know.

Designer Brands beat analysts' revenue expectations by 1% last quarter, reporting revenues of $754.3 million, flat year on year. It was a weaker quarter for the company, with underwhelming earnings guidance for the full year and a miss of analysts' earnings estimates.

Is Designer Brands a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Designer Brands's revenue to be flat year on year at $741.6 million, improving from the 10.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.

Designer Brands Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Designer Brands has missed Wall Street's revenue estimates four times over the last two years.

Looking at Designer Brands's peers in the footwear retailer segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Shoe Carnival delivered year-on-year revenue growth of 6.8%, beating analysts' expectations by 2%, and Foot Locker reported a revenue decline of 2.7%, in line with consensus estimates. Shoe Carnival traded up 7.9% following the results while Foot Locker was also up 23.1%.

Read our full analysis of Shoe Carnival's results here and Foot Locker's results here.

There has been positive sentiment among investors in the footwear retailer segment, with share prices up 8.3% on average over the last month. Designer Brands is up 5% during the same time and is heading into earnings with an average analyst price target of $10 (compared to the current share price of $10.05).

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.