Footwear and accessories discount retailer Designer Brands (NYSE: DBI) will be reporting results this Tuesday morning. Here’s what to look for.
Designer Brands met analysts’ revenue expectations last quarter, reporting revenues of $739.8 million, down 4.2% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and revenue in line with analysts’ estimates.
Is Designer Brands a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Designer Brands’s revenue to decline 1.8% year on year to $763.4 million, in line with the 1.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.18 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 five times over the last two years.
Looking at Designer Brands’s peers in the apparel and footwear retail segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Boot Barn delivered year-on-year revenue growth of 18.7%, beating analysts’ expectations by 2.1%, and Shoe Carnival reported a revenue decline of 3.2%, topping estimates by 0.7%. Boot Barn traded down 4.5% following the results while Shoe Carnival was up 8.4%.
Read our full analysis of Boot Barn’s results here and Shoe Carnival’s results here.
There has been positive sentiment among investors in the apparel and footwear retail segment, with share prices up 8.9% on average over the last month. Designer Brands is up 22.9% during the same time and is heading into earnings with an average analyst price target of $4.75 (compared to the current share price of $4.87).
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