Footwear and accessories discount retailer Designer Brands (NYSE:DBI) will be reporting results tomorrow before the bell. Here’s what to look for.
Designer Brands missed analysts’ revenue expectations by 5.4% last quarter, reporting revenues of $771.9 million, down 2.6% year on year. It was a disappointing quarter for the company, with full-year EPS guidance missing analysts’ expectations.
Is Designer Brands a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Designer Brands’s revenue to grow 2% year on year to $802.1 million, a reversal from the 9.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.35 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 footwear retailer 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 13.7%, meeting analysts’ expectations, and Shoe Carnival reported a revenue decline of 4.1%, falling short of estimates by 3%. Boot Barn traded down 19.9% following the results while Shoe Carnival was up 1.2%.
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 footwear retailer segment, with share prices up 5.7% on average over the last month. Designer Brands is up 16.4% during the same time and is heading into earnings with an average analyst price target of $5.75 (compared to the current share price of $6.03).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
