Footwear and accessories discount retailer Designer Brands (NYSE:DBI) will be announcing earnings results tomorrow before market hours. Here’s what to look for.
Designer Brands met analysts’ revenue expectations last quarter, reporting revenues of $746.6 million, flat year on year. It was a slower quarter for the company, with a miss of analysts’ earnings estimates and underwhelming earnings guidance for the full year.
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 grow 3% year on year to $816.1 million, a reversal from the 7.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.53 per share.
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 Q2 results, giving us a hint as to what we can expect. Foot Locker delivered year-on-year revenue growth of 1.9%, meeting analysts’ expectations, and Shoe Carnival reported revenues up 12.9%, falling short of estimates by 1.1%. Foot Locker traded down 4.6% following the results while Shoe Carnival was up 7%.
Read our full analysis of Foot Locker’s results here and Shoe Carnival’s results here.
Investors in the footwear retailer segment have had steady hands going into earnings, with share prices flat over the last month. Designer Brands is down 15.8% during the same time and is heading into earnings with an average analyst price target of $9.5 (compared to the current share price of $6.01).
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