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Designer Brands, Tilly's, Gray Television, G-III, and Soho House Shares Are Soaring, What You Need To Know

DBI Cover Image

What Happened?

A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +1.5%, S&P 500 +1.0%) as reports pointed to easing tensions between Israel and Iran. 

The Wall Street Journal said senior Iranian officials had signaled a willingness to restart stalled nuclear talks, on the condition that Washington refrain from joining Israel's ongoing strikes. This development triggered a significant decline in oil prices, easing inflation concerns. 

Also, it is possible some investors were buying the dip following the sell-off at the end of the previous week.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

Zooming In On Designer Brands (DBI)

Designer Brands’s shares are extremely volatile and have had 58 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 3 days ago when the stock dropped 7.3% after the major indices pulled back (Nasdaq -1.3%, S&P 500 -1.1%) as Israel carried out significant strikes on Iranian nuclear and military sites, dramatically escalating fears of a broader conflict in the Middle East. This development sent crude oil prices surging, as investors feared potential disruptions to global oil supply and a wider regional conflict. 

Designer Brands is down 54.3% since the beginning of the year, and at $2.42 per share, it is trading 70.3% below its 52-week high of $8.16 from July 2024. Investors who bought $1,000 worth of Designer Brands’s shares 5 years ago would now be looking at an investment worth $301.73.

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