Designer Brands Inc (DBI)
🔔 Watch stock
symbol.quality_heading
The business works in principle, but one material question is open. As long as it stays open, our findings do not carry a quality verdict.
There is a date and there are three numbers. Market data point to the next quarterly report on September 8, 2026; the company has reaffirmed diluted earnings of $0.28 to $0.38 per share for fiscal 2026 and said it believes it can reach the high end. Anyone waiting should then check three things: does gross margin hold above 45 percent once the comparison base is higher? Does income attributable to Topo's minority owners keep growing beyond $2.295 million — and how much is then left for the company's own shareholders? And have any of the roughly $20 million of expected tariff refunds finally arrived? The low valuation and the activist are the arguments for patience; the interest burden, the shrinking store business and the locked-in voting majority are why patience here is not automatic. The decision is yours.
symbol.quality_note
In the first quarter of fiscal 2026 the footwear retailer Designer Brands reported adjusted earnings of $0.07 per share against a $0.03 estimate. The reconciliation the company itself filed with the U.S. securities regulator, the SEC, shows where the difference comes from: $2.295 million of the $2.647 million of adjustments is income attributable to the minority owners of Topo Athletic, who hold 20.6 percent of the growth brand. Strip that line out and exactly $0.03 remains. The same Topo stake shows up three more times in the filings: as $8.4 million of back duties, as a put option priced off future performance, and as the demand of an activist holding 16.3 percent of the shares. We read the filings line by line — and you draw your own conclusion at the end.
Read the analysis
Stock Watch
This analysis is as of July 25, 2026. Stock Watch will tell you what's changed at DBI since then.
Later $1 a month per stock — signing up is free, and you'll be the first to know when it launches.
Appears in These Scanners
This stock currently matches 11 of our scanner strategies — each hit links to the scanner.
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Trading Day
Key levels of the most recently completed trading day — not a live quote.
52-Week Range
Current price 6.00 $ — 52% of the range above the low.
Lowest and highest closing price over the last 52 weeks. The marker shows where the current price sits within that range: close to the high speaks for strength, close to the low for weakness.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 08/03/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
Quality & Screener
AI Rating
Uses AIDesigner Brands setzt KI-Werkzeuge im eigenen IT- und E-Commerce-Betrieb ein — der Geschäftsbericht spricht ausdrücklich von „unserem Einsatz“ solcher Werkzeuge und der Technologieausschuss des Verwaltungsrats überwacht KI-Risiken als stehende Aufgabe; eine KI-Umsatzquelle nennen die Berichte nirgends.
View the full file — quotes, sources, reviewed filings
„Our use of artificial intelligence tools and other new technologies may subject us to significant competitive, legal, regulatory and other risks, and there can be no assurance that our use of such tools or technologies will enhance our business operations or result in a benefit to us."
Unser Einsatz von Werkzeugen der künstlichen Intelligenz und anderer neuer Technologien kann uns erheblichen wettbewerblichen, rechtlichen, regulatorischen und sonstigen Risiken aussetzen, und es gibt keine Gewähr dafür, dass unser Einsatz solcher Werkzeuge oder Technologien unseren Geschäftsbetrieb verbessert oder uns einen Nutzen bringt.
„regularly reviewing with executive management significant cybersecurity, privacy, artificial intelligence, and IT risks, as well as our policies and processes for risk assessment"
regelmäßige Durchsicht wesentlicher Risiken aus Cybersicherheit, Datenschutz, künstlicher Intelligenz und Informationstechnik gemeinsam mit der Geschäftsleitung sowie unserer Richtlinien und Verfahren zur Risikobewertung
„risks related to the implementation of new or updated IT systems, including the use of artificial intelligence tools"
Risiken im Zusammenhang mit der Einführung neuer oder aktualisierter IT-Systeme, einschließlich des Einsatzes von Werkzeugen der künstlichen Intelligenz
Filings Reviewed: 10-Q 2026-06-09 · 10-K 2026-03-30 · 10-Q 2025-12-09 · 10-Q 2025-09-09 · 10-Q 2025-06-10 · 10-K 2025-03-24
Rated on July 25, 2026 · How the Rating Is Built
Analysts & Price Target
The price target sits 29.2% above the current price.
- Consensus
- Hold
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Next Reporting Date
- Expected Earnings per Share
- 0.25 $
Expected date of the next quarterly or annual figures. Dates do shift occasionally — only the invitation issued by the company is binding.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
None of the selected stocks reports this metric. Pick another metric or switch between annual and quarterly.
· Total · per year
These companies report in different currencies — switch on “Indexed” or pick a margin for a fair comparison.
The figures could not be loaded right now.
Source: fundamental data
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q3 | 0.29 | -50.80 | 772 | -2.60 | 1.80 | 42 | 28 |
| 2024: Q4 | 0.27 | 12.50 | 777 | -1.20 | 1.70 | -10 | -19 |
| 2025: Q1 | -0.44 | 0.00 | 714 | -5.40 | -5.30 | 70 | 58 |
| 2025: Q2 | -0.26 | -425.00 | 687 | -8.00 | -2.50 | -20 | -28 |
| 2025: Q3 | 0.34 | 17.20 | 740 | -4.20 | 1.50 | 21 | 12 |
| 2025: Q4 | 0.38 | 40.70 | 752 | -3.20 | 2.40 | 67 | 58 |
| 2026: Q1 | -0.31 | 29.50 | 714 | 0.00 | -2.80 | 42 | 36 |
| 2026: Q2 | 0.07 | 126.90 | 696 | 1.40 | 0.20 | -22 | -32 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Assessment: Opportunities & Risks
Of the $2.647 million between reported net income ($1.159 million) and adjusted net income ($3.806 million) for the quarter ended May 2, 2026, $2.295 million is income attributable to the minority owners of Topo Athletic. Without that item the result works out to roughly $0.03 per share — precisely the analyst estimate. The 133 percent beat does not carry operationally.
Gross margin rose from 42.9 percent to 45.3 percent in the first quarter of fiscal 2026, and from 42.7 percent to 43.6 percent in fiscal 2025. A $7.907 million operating loss became $18.870 million of operating profit, and corporate shared services costs fell 15.2 percent. Brand Portfolio lifted operating profit from $1.946 million to $15.423 million.
At May 2, 2026 debt stood at $478.594 million against $280.926 million of equity; the term loan costs 10.8 percent, or 12.2 percent effective. In fiscal 2025, $45.338 million of net interest expense consumed almost all of the $47.764 million of operating profit. On the relieving side: the February 27, 2026 amendment pushed the revolver maturity out to February 2031.
Topo Athletic is the only clearly growing part of the group, yet it is only 79.4 percent owned. Call and put options cover the remaining 20.6 percent at a performance-based price — the better Topo runs, the more expensive the buyout. Add $8.4 million of back duties from five years of incorrect duty rates, booked retroactively into prior periods.
The Schottenstein Affiliates held about 27 percent of the equity with 64 percent of the votes as of May 2, 2026 (Class B carries eight votes per share); six days after Stone House Capital's ownership filing, shareholders approved tougher advance notice deadlines on June 17, 2026. The 52.902 million treasury shares sit on the books at $833.351 million — more than today's market value.
Market value of roughly $277 million (data as of July 25, 2026) equals about 0.10 times annual revenue and sits just below the $5.53 book value per share. Against the company's own fiscal 2026 guidance of $0.28 to $0.38 per share, that is roughly 13 to 18 times earnings. Not included: roughly $20 million of expected tariff refunds.
Designer Brands is the adjustment trap in its purest form: adjusted earnings of $0.07 per share for the quarter ended May 2, 2026 beat the $0.03 estimate by 133 percent — but $2.295 million of the $2.647 million of adjustments is income attributable to Topo Athletic's minority owners, and without it exactly the estimate remains. The operating repair is real all the same (gross margin 45.3 percent instead of 42.9 percent, operating profit of $18.870 million after a $7.907 million loss), yet net sales are shrinking for a third straight year and $45.338 million of interest expense consumed almost all of fiscal 2025 operating profit. Add 27 percent of the equity carrying 64 percent of the votes, an activist at 16.3 percent and $8.4 million of back duties at Topo. Not investment advice.
- Designer Brands landed on the research list at rank 25 in our in-house Big Earnings Surprise ranking (U.S. selection, as of July 25, 2026, relative strength rating 83). The lists are recomputed daily — today's rank is not tomorrow's rank. Important for context: the filter measures the distance to the analyst estimate, and at Designer Brands that estimate refers to adjusted earnings, not to the figure reported under U.S. accounting rules.
- Calendar and name trap: the fiscal year ends on the Saturday closest to January 31. "Fiscal 2025" means the 52 weeks ended January 31, 2026, and fiscal 2026 ends January 30, 2027; fiscal 2023 contained 53 weeks. Until March 15, 2019 the company was named DSW Inc. — older data series run under that name, while the SEC filer number 0001319947 stayed the same.
- Note the retroactive correction: because of the incorrect duty rates at Topo, prior-period figures were restated in the quarterly report for the period ended May 2, 2026. The prior-year quarterly loss grew from $17.424 million to $17.816 million, and retained earnings at the start of fiscal 2025 fell from $77.9 million to $74.8 million. Earlier releases therefore show slightly different values.
- Valuation figures are dated and evergreen: market value roughly $277 million across all 50.777 million shares of both classes (data as of July 25, 2026, valuation anchor $5.46 per share at the July 24, 2026 close); roughly $235 million of that falls on the listed Class A alone. Cross-check against a document: activist Stone House Capital paid roughly $31.996 million for 5.5 million shares, an average of about $5.82 each.
About the Company
Designer Brands Inc., together with its subsidiaries, engages in the design, production, and retailing of footwear and accessories in the United States, Canada, and internationally. It operates through two segments: Retail and Brand Portfolio. The company offers dress, casual, and athletic footwear and accessories, as well as handbags for women, men, and kids. It sells its products under the Vince Camuto, Keds, Topo, as well as Jessica Simpson, Lucky Brand, Le Tigre, and Hush Puppies brands. The company offers its products through its direct-to-consumer stores and e-commerce sites; and a portfolio of banners, including DSW Designer Shoe Warehouse, The Shoe Co, and Rubino; and mobiles applications. The company was founded in 1991 and is based in Columbus, Ohio.
| Employees | 13,000 |
|---|---|
| Headquarters | Columbus, OH |
| Website | designerbrands.com |
| IPO Date | 10. Jun 1991 |
Management
| Name | Title | Birth Year |
|---|---|---|
| Jay L. Schottenstein | Executive Chairman | 1954 |
| Douglas M. Howe | CEO & Director | 1961 |
| Deborah L. Ferree | Vice Chairman & Chief Product Officer | 1954 |
| Andrea O'Donnell | COO, Executive VP of Designer Brands & President of Brands | 1969 |
| Sheamus G. Toal CPA | CFO, Executive VP & Principal Financial Officer | 1969 |
| Lisa M. Yerrace | Senior VP, General Counsel, Chief Compliance Officer & Corporate Secretary | – |
| Mary J. Turner | Executive VP & President of Designer Brands Canada Inc. | 1958 |
| Laura T. Davis | EVP of Designer Brands & President of North America Retail of DSW Shoe Warehouse Inc. | 1972 |
| Matthew Crummy | Senior Vice President of Strategy and FP&A | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Chart
Interactive price chart (TradingView).
Data as of: July 31, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.