Designer Brands: Stumbling On The Earnings Runway

Sep. 12, 2024 2:46 PM ETDesigner Brands Inc. (DBI) StockDBI
Grassroots Trading
1.73K Followers
(13min)

Summary

  • Designer Brands Inc. missed Q2 2024 earnings estimates, with EPS of $0.29 and revenue shortfall of $44.24 million, highlighting profitability and debt issues.
  • Despite positive signs in athleisure and back-to-school sales, the company's high debt load and declining profitability make it a risky investment.
  • DBI's valuation metrics, including a high EV/EBITDA ratio and significant debt, indicate financial instability, overshadowing potential recovery in athletic and casual segments.
  • Given the financial challenges and industry headwinds, I rate DBI as a 'Sell' due to limited upside and fragile financial condition.

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Nikola Stojadinovic

Thesis

Designer Brands Inc. (NYSE:DBI) has dropped the ball in its latest earnings report as they posted a Q2 2024 non-GAAP EPS of $0.29, missing estimates by $0.24.

Revenue also came up short, off by $44.24 million.

Sure, athleisure

This article was written by

1.73K Followers
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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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