Designer Brands Inc logo

Designer Brands Inc(DBI)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$6.13
09/25/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Advisory & Investor View for DBI

09/25/2026: DBI (1-star) is currently NOT-A-BUY. Pass it for now.

Designer Brands Inc is a retail-focused company that operates the DSW warehouse chain and manages a portfolio of footwear brands. The company's main strength lies in its extensive retail network and its shift toward controlling more proprietary brands, which aims to improve long-term margins. Its primary investment story hinges on successfully executing this hybrid business model to offset retail-sector pressures. However, investors must consider risks like intense competition, changing consumer discretionary spending, and operational complexity. The stock may suit value-oriented investors, though it requires monitoring developments in inventory management and the successful integration of its owned brand wholesale segment.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitGrowth is largely dependent on the successful execution of the owned brand strategy rather than rapid retail store expansion.
Momentum investorWeak fitThe stock often lacks strong upward momentum and is subject to broader retail sector volatility.
Value investorStrong fitThe stock frequently trades at valuations that reflect the cyclical risks and challenges of the retail sector.
Dividend investorMixed fitDividends have fluctuated, making it less suitable for investors prioritizing consistent, growing income.
Low-risk investorWeak fitRetail exposure and the volatility inherent in apparel/footwear demand increase the risk profile.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highThe stock is susceptible to sharp swings based on quarterly earnings reports and consumer sentiment data.
Valuation riskMediumWhile often inexpensive, the valuation depends on the market's assessment of long-term brand equity.
Competition risk (Retail and Footwear)HighIntense pressure from e-commerce and specialized retailers threatens market share.
Business qualityMediumThe transition to a hybrid retail-wholesale model adds complexity to operational execution.
Dividend incomeMedium / highDividend payouts are variable and not guaranteed, impacting income stability for shareholders.
Execution riskMedium / highSuccess depends on effectively managing inventory across two distinct business channels.

Price Behavior

Downtrend
PRICE PATH

Downtrend

The stock has experienced a sustained decline in price over recent periods.

Choppy
PRICE STABILITY

Choppy

The stock has experienced frequent reversals and pronounced short-term price swings.

Analysis of Past Performance

Type Stock
Historic Profit -75.04%
Avg. Invested days 15
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 1.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/25/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
DBI receives a 3-star rating, supported by solid company fundamentals. The rating is constrained by weak unit economics, and weak price momentum.

Company Fundamentals

★★★★★
DBI has solid overall fundamentals (4 stars), with moderate financial health, moderate growth momentum, and strong ownership. In FY2026 versus FY2025, solid earnings growth (+20.6%) is partially offset by soft cash generation (FCF margin 3.9%), slightly negative revenue growth (-3.9%), soft profitability (net margin -0.3%).

Financial Health Rating

★★★★★
DBI's financial health is supported by moderate cash strength, including free-cash-flow generation (3.9% of revenue). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is DBI's strongest growth driver at +29.0% FY2026 versus FY2025 (solid, 4 stars). By comparison, earnings growth (+20.6%, solid) is also solid, while revenue growth (-3.9%, slightly negative) holds the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 91.3% and approximately 63.6% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 17.44% supports management-shareholder alignment.

Top 5 Institutional Investors

Stone House Capital Management, LLC 10.78%
BlackRock Inc 5.58%
Dimensional Fund Advisors, Inc. 4.28%
Charles Schwab Investment Management Inc 4.13%
American Century Companies Inc 3.52%

Unit Economics (Per $1K Revenue)

★★★★★
DBI generates approximately $436 of gross profit, $14 of operating income, and $39 of free cash flow for every $1,000 of revenue. Based on FY2026 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

★★★★★
Effective Tax Rate: 501.66%

Quantitative Style Profile

★★★★★
DBI has a liquid profile. Weak momentum is the primary drawback, while elevated volatility.

Style Classification

Quality Focused

Value-OrientedHigh VolatilitySmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 320.54M USD
Price to earnings Ratio 19.59
1Y Target Price 6.75
Price to earnings Ratio 19.59
1Y Target Price 6.75
Volume (30-day avg) 690.1K shares
Beta 1.25
52 Weeks Range 3.00 - 9.02
Updated Date 09/25/2026
52 Weeks Range 3.00 - 9.02
Updated Date 09/25/2026
Dividends yield (FY) 3.24%
Basic EPS (TTM) 0.32

How Company Makes Money

Business areaWhat it includesRetail investor read
DSW RetailIn-store and online sales of third-party and owned footwear brands in North America.Retail revenue depends heavily on consumer discretionary spending and store traffic.
Wholesale / BrandsDesign, development, and sale of owned brands like Vince Camuto to external retailers.This provides higher margin potential but requires staying relevant in changing fashion trends.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Earnings Date

Report Date 2026-09-10
When Before Market
Estimate 0.25
Actual 0.34

Profitability

Profit Margin 0.61%
Operating Margin (TTM) 2.25%

Management Effectiveness

Return on Assets (TTM) 2.02%
Return on Equity (TTM) 8.49%

Valuation

Trailing PE 19.59
Forward PE 9.51
Enterprise Value 1.48B
Price to Sales(TTM) 0.11
Enterprise Value 1.48B
Price to Sales(TTM) 0.11
Enterprise Value to Revenue 0.51
Enterprise Value to EBITDA 9.07
Shares Outstanding 43.39M
Shares Floating 27.58M
Shares Outstanding 43.39M
Shares Floating 27.58M
Percent Insiders 17.44
Percent Institutions 91.25

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI Summary

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Designer Brands Inc

Exchange NYSE
Headquarters Columbus, OH, United States
IPO Launch date 1991-06-10
CEO & Director Mr. Douglas M. Howe
Sector Consumer Cyclical
Industry Footwear & Accessories
Full time employees 13000
Full time employees 13000

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.