Footwear and accessories discount retailer Designer Brands (NYSE: DBI) will be reporting results this Tuesday before market open. Here’s what investors should know.
Designer Brands missed analysts’ revenue expectations by 6.3% last quarter, reporting revenues of $686.9 million, down 8% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS 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 decline 4.4% year on year to $737.9 million, a further deceleration from the 2.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.22 per share.
Analysts covering the company have generally 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 six 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. Shoe Carnival’s revenues decreased 7.9% year on year, missing analysts’ expectations by 2.5%, and Boot Barn reported revenues up 19.1%, topping estimates by 1.5%. Shoe Carnival traded up 14.4% following the results while Boot Barn’s stock price was unchanged.
Read our full analysis of Shoe Carnival’s results here and Boot Barn’s results here.
There has been positive sentiment among investors in the footwear retailer segment, with share prices up 9.3% on average over the last month. Designer Brands is up 65.5% during the same time and is heading into earnings with an average analyst price target of $4 (compared to the current share price of $4.70).
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