Designer Brands Inc
🔔 Watch stock
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
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.
Why this colour
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.
What the thesis turns on
Assessment: Opportunities & Risks
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.
Quality of the earnings beat
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.
Operating repair
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.
Debt and interest burden
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 as a standalone item
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.
Control and capital history
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.
Valuation
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.
Worth Noting
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.
Stock Watch
This analysis is as of August 26, 2026. Stock Watch will tell you what's changed at DBI since then.
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Price history
Chart
Interactive price chart (TradingView).
52-week range: 3.20 $ to 9.10 $ · Last price: 6.10 $ (As of: September 17, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 09/18/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
Quality & Screener
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Footwear & Accessories
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| Designer Brands Inc DBI | 0.3 | 28.7 | 9.2 | 44.5 | 2.3 | -3.9 | 49.6 |
| Nike Inc NKE | 53.9 | 24.0 | 12.4 | 43.3 | 6.9 | -9.8 | -49.2 |
| Deckers Outdoor Corporation DECK | 11.1 | 12.0 | 7.1 | 57.8 | 14.0 | 9.4 | -32.8 |
| On Holding Ltd ONON | 9.2 | 30.1 | 11.1 | 64.8 | 14.1 | 24.2 | -37.7 |
| Crocs Inc CROX | 6.2 | – | 7.4 | 57.5 | 22.2 | -1.5 | 52.7 |
| Birkenstock Holding plc BIRK | 5.9 | – | 8.2 | 57.5 | 26.9 | 16.2 | -31.7 |
| Steven Madden Ltd SHOO | 3.1 | 41.5 | 13.3 | 46.9 | 15.5 | 10.5 | 31.4 |
| Wolverine World Wide Inc WWW | 1.6 | – | 11.0 | 47.1 | 7.4 | 6.8 | -35.5 |
| Forward Industries, Inc. FWDI | 0.5 | – | 20.8 | 70.6 | 18.8 | -39.8 | -83.9 |
| Median of companies shown | 5.9 | 28.7 | 11.0 | 57.5 | 14.1 | 6.8 | -32.8 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2017 | 2,711 | 200 | 125 | 1.52 | 213 | 937 | 1,428 |
| 2018 | 2,800 | 125 | 67 | 0.83 | 191 | 950 | 1,414 |
| 2019 | 3,184 | 59 | -20 | -0.26 | 175 | 832 | 1,621 |
| 2020 | 3,493 | 46 | 95 | 1.27 | 197 | 721 | 2,465 |
| 2021 | 2,235 | -442 | -489 | -6.77 | -154 | 243 | 1,977 |
| 2022 | 3,197 | 129 | 154 | 2.00 | 171 | 412 | 2,015 |
| 2023 | 3,315 | 110 | 163 | 2.26 | 201 | 430 | 2,010 |
| 2024 | 3,075 | 72 | 29 | 0.46 | 162 | 359 | 2,076 |
| 2025 | 3,009 | 35 | -11 | -0.20 | 82 | 278 | 2,009 |
| 2026 | 2,893 | 41 | -8 | -0.17 | 110 | 282 | 1,948 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
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
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The figures could not be loaded right now.
Source: fundamental data
| 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 | 0.24 | -99.90 | 777 | -1.20 | 1.70 | -10 | -19 |
| 2025: Q1 | -0.44 | 0.00 | 714 | -5.40 | -5.30 | 70 | 58 |
| 2025: Q2 | -0.37 | -3,800.00 | 687 | -8.00 | -2.50 | -20 | -28 |
| 2025: Q3 | 0.21 | -27.60 | 740 | -4.20 | 1.50 | 21 | 12 |
| 2025: Q4 | 0.35 | 45.80 | 752 | -3.20 | 2.40 | 67 | 58 |
| 2026: Q1 | -0.31 | 29.50 | 714 | 0.00 | -2.80 | 42 | 36 |
| 2026: Q2 | 0.07 | 118.90 | 696 | 1.40 | 0.20 | -22 | -32 |
| 2026: Q3 | 0.31 | 47.60 | 731 | -1.20 | 2.40 | 70 | 58 |
What Do These Terms Mean?
- 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.
Screening
Appears in These Scanners
This stock currently matches 11 of our scanner strategies — each hit links to the scanner.
Growth
Quality & Balance Sheet
Breakout & Setup
Dividends
Earnings & Surprises
Momentum & Trend
Research
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
Outlook
Analysts & Price Target
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.
Distribution of Recommendations
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 01/31/2027 | 0.51 | 0.50 – 0.52 | 2,914 | 217.3% | 2 |
| 01/31/2028 | 0.70 | 0.60 – 0.80 | 2,972 | 37.8% | 2 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Valuation
What is priced in?
Instead of guessing what the stock is worth, we turn the question around: what free cash flow growth has to happen for today’s market value to add up? The assumptions behind it can be moved.
With these assumptions (discount rate 10.0%, terminal growth 2.5%), no growth rate between -20.0% and 60.0% per year explains today’s market value — the reverse calculation yields no meaningful figure here.
| Free cash flow (last twelve months) | $144.4M |
|---|---|
| Market cap | $311.0M |
| Free cash flow in year ten | – |
| Terminal value as a share of market value | – |
It shows which assumption is built into today’s price, not whether that assumption will hold. Every assumption can be changed with the sliders; the figures move with them.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
Designer 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.
10-K · 2026-03-30 · View SEC filing
„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
10-K · 2026-03-30 · View SEC filing
„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
10-Q · 2026-06-09 · View SEC filing
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
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years -4.4%
- More than 10% revenue growth is expected for the coming year -74.2%
- Share count grows by less than 3% a year -12.0%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") -0.2%
- Gross margin at 40% or higher and without meaningful erosion 43.6%
- Goodwill from acquisitions does not grow faster than revenue 6.7%
- Net debt below twice EBITDA 10.8 x EBITDA
- Operating cash flow covers the profits of the last three years 344 m
- Return on capital at 15% or higher, or up versus two years ago 3.0%
- Insiders hold at least 10% or are net buyers 17.6%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
1/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% 0.7%
- Exp. sales growth 3Y > 5% 1.4%
- EBIT growth 10Y > 5% -16.1%
- Exp. EBIT growth 3Y > 5% 1.4%
- Net debt < 4x EBIT 28.1x
- EBIT positive, 10Y straight 9
- Max. EBIT decline < 50% 100.0%
- Return on equity > 15% -11.9%
- ROCE > 15% 3.0%
- Expected return > 10% 38.1%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
Insiders
Insider Transactions
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Sep 14, 2026 | Haley Mark | SVP, Controller & PAO | Sell | 17,698 | 6.37 | 112,697 |
| Sep 11, 2026 | Haley Mark | SVP, Controller & PAO | Sell | 1,800 | 6.01 | 10,823 |
| Aug 1, 2026 | Davis Laura | EVP;Pres DSW Designer ShoeWhse | Other | 34,547 | 6.04 | 208,664 |
| Aug 1, 2026 | Davis Laura | EVP;Pres DSW Designer ShoeWhse | Other | 114,501 | 0.00 | – |
| Jul 31, 2026 | Schottenstein Joseph A. | Director | Other | 3,725 | 0.00 | – |
The company
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
- Address
- 810 DSW Drive, 43219 Columbus, United States
- Phone
- 614 237 7100
- Website
- designerbrands.com
- IPO Date
- 06/10/1991
- ISIN
- US2505651081
- Stock Split
- 2:1 on 11/04/2013
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.
Filings
Company Filings (8-K)
An 8-K is the filing a US company must use to disclose material events immediately — takeovers, changes at the top, major contracts or payment troubles, for instance. The links open the original document at the US Securities and Exchange Commission (SEC).
- 09/10/2026 Designer Brands Inc. (DBI): Results of Operations and Financial Condition; Other Events; Financial Statements and Exhibits SEC ↗
Data as of: September 17, 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.