Designer Brands Inc. saw a remarkable price increase of 17.92%, reaching a 52-week high following the release of its third-quarter earnings report. The company reported a significant improvement in profitability, with adjusted earnings per share surpassing analyst expectations, which has boosted investor confidence.
The earnings report highlighted a 40% year-over-year increase in net income, alongside a gross margin enhancement of 210 basis points. Despite a slight decline in quarterly sales, the overall financial metrics indicate a strong operational performance, which has positively influenced the stock's upward movement.
This strong performance reflects the effectiveness of Designer Brands' strategic initiatives and cost control measures. The optimistic outlook for fiscal 2025, coupled with a planned dividend, suggests a stable cash flow position, further solidifying investor sentiment and driving the stock to new highs.
Wall Street analysts forecast DBI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DBI is 6.25 USD with a low forecast of 5.00 USD and a high forecast of 7.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
Wall Street analysts forecast DBI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DBI is 6.25 USD with a low forecast of 5.00 USD and a high forecast of 7.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
2 Hold
0 Sell
Hold
Current: 6.510
Low
5.00
Averages
6.25
High
7.50
Current: 6.510
Low
5.00
Averages
6.25
High
7.50
UBS
Neutral
maintain
$7
2026-01-08
Reason
UBS
Price Target
$7
AI Analysis
2026-01-08
maintain
Neutral
Reason
UBS raised the firm's price target on Designer Brands to $7.50 from $7 and keeps a Neutral rating on the shares. CY26 EPS upside for Softline stocks is expected to be driven by a stronger-than-expected U.S. consumer and an underappreciated "Health & Wellness 2.0" trend, with estimates at least 4% above consensus for 16 names, the analyst tells investors in a research note. Earnings momentum is projected to extend into CY27, with EPS forecasts averaging about 5% above consensus, the firm adds.
UBS
Neutral
upgrade
$7
2025-12-10
Reason
UBS
Price Target
$7
2025-12-10
upgrade
Neutral
Reason
UBS raised the firm's price target on Designer Brands to $7 from $4.50 and keeps a Neutral rating on the shares. While there were some signs of progress in Designer Brands' Q3 report, topline challenges prevail, the analyst tells investors in a research note.
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Telsey Advisory
Market Perform
maintain
$5 -> $7
2025-12-10
Reason
Telsey Advisory
Price Target
$5 -> $7
2025-12-10
maintain
Market Perform
Reason
Telsey Advisory raised the firm's price target on Designer Brands to $7 from $5 and keeps a Market Perform rating on the shares. While the company reported sequential improvement in Q3, the macro-operating environment remains challenging, with pressure on the consumer and impact from tariffs remaining concerns going forward, the analyst tells investors.
UBS
Neutral
maintain
$4
2025-12-03
Reason
UBS
Price Target
$4
2025-12-03
maintain
Neutral
Reason
UBS raised the firm's price target on Designer Brands to $4.50 from $4 and keeps a Neutral rating on the shares. Designer Brands' fundamentals appear to have improved through Q3, likely supporting a modest EPS beat, though tariff uncertainty is expected to prevent reinstating FY25 guidance and shift attention to Q4-to-date trends, the analyst tells investors in a research note.
About DBI
Designer Brands Inc. is a designer, producer and retailer of footwear brands and accessories. The Company operates through three segments: the U.S. Retail segment, the Canada Retail segment, and the Brand Portfolio segment. The U.S. Retail segment operates the DSW Designer Shoe Warehouse (DSW) banner through its direct-to-consumer United States stores and e-commerce site. The Canada Retail segment operates The Shoe Company, DSW, and Rubino banners through its direct-to-consumer stores and e-commerce sites in Canada. The Brand Portfolio segment is engaged in the wholesale of its branded products to retailers and international distributors; commissions for serving retailers as the design and buying agent for products under private labels; and the sale of its Vince Camuto, Keds, and Topo brands through direct-to-consumer e-commerce sites. The Company operates approximately 494 stores in the United States and 175 stores in Canada.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
