Designer Brands Inc. (DBI) AI Stock Analysis

Designer Brands Inc. operates in the North American footwear and accessories industry across three segments: U.S. Retail, Canada Retail, and Brand Portfolio. Founded in 1991 and headquartered in Columbus, Ohio, the company designs, manufactures, and retails women's, men's, and children's dress, casual, and athletic footwear, as well as handbags. Its brand portfolio includes Vince Camuto, Louise et Cie, Jessica Simpson, Lucky, and JLO Jenifer Lopez. Designer Brands distributes merchandise through retail banners including DSW Designer Shoe Warehouse, The Shoe Company, and Shoe Warehouse, alongside direct-to-consumer digital channels including dsw.com, vincecamuto.com, dsw.ca, and theshoecompany.ca.

Revenue rose from $3.20B in FY2022 to $3.32B in FY2023, then contracted to $3.07B in FY2024, $3.01B in FY2025, and $2.89B in FY2026, yielding a 5-year revenue CAGR of 5.3%. Gross margin widened over that period from 33.4% in FY2022 to 43.6% in FY2026. Operating margin stood at 1.4% in FY2026, down from 4.0% in FY2022. Net income transitioned from $154.5M in FY2022 to net losses of -$10.5M in FY2025 and -$8.4M in FY2026. For the trailing twelve months, revenue was $2.89B with a profit margin of 0.6%. In the latest quarter ended July 31, 2026, quarterly revenue fell 1.2% year-over-year while quarterly earnings grew 47.6%.

As of July 31, 2026, Designer Brands held $51.6M in cash and short-term investments against $1.21B in total debt, resulting in net debt of $1.16B. Total assets stood at $2.01B and shareholders' equity was $301.1M, yielding a debt-to-equity ratio of 4.02 and a current ratio of 1.22. In FY2026, operating cash flow was $109.9M and free cash flow reached $112.6M. Capital expenditures were $2.8M, dividends paid totaled $9.7M, and the 5-year share count change was -27.4%.

DBI closed at $6.19 on October 16, 2026, with a market capitalization of $316.5M and enterprise value of $1.48B. The stock trades at a trailing P/E of 21.3x, above the median of 18.0x for its US-listed Consumer Cyclical peers. Its forward P/E of 9.5x and EV/EBITDA of 9.1x compare to peer medians of 14.1x and 11.1x, respectively. Price-to-sales is 0.1x against the peer median of 0.7x. Over the past year, DBI gained 85.5% versus 16.8% for the S&P 500, while its 5-year return of -45.9% trailed the S&P 500 return of 83.0%.

Designer Brands pays a quarterly dividend with an annualized forward payout of $0.20 per share, representing a dividend yield of 3.23% and a payout ratio of 41.7%. The company has paid dividends for 5 consecutive years, delivering a 5-year annualized dividend growth rate of 14.9%. Its last ex-dividend date was September 24, 2026.

Wall Street coverage includes 0 Strong Buy, 0 Buy, 2 Hold, 0 Sell, and 0 Strong Sell ratings. The mean price target is $6.75, representing a 9.0% premium over the last close of $6.19. For the fiscal year ending January 31, 2027, consensus estimates model EPS of $0.51 on revenue of $2.91B. For the following fiscal year, 2 analysts project EPS of $0.70 on revenue of $2.97B. Designer Brands has beaten EPS estimates in each of the last 4 quarters, with next earnings scheduled for December 8, 2026.

This page is an AI-written research summary of Designer Brands Inc. (DBI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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