Designer Brands Gears Up For Q1 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts

Designer Brands Inc. (DBI) is expected to report a first-quarter loss of 6 cents per share on revenue of $732.82 million, a decline from the prior year's profit of 8 cents per share and revenue of $746.6 million. Analysts at Telsey Advisory Group and UBS maintain a neutral outlook on the stock, with price targets of $5 and $4.5 respectively; the stock closed down 2.4% at $3.73 on Monday.

Analysis

Designer Brands Inc. (DBI) is scheduled to release its first-quarter financial results on Tuesday, June 10, with analysts anticipating a significant downturn. The consensus expectation is for a quarterly loss of 6 cents per share, a stark contrast to the 8 cents per share profit reported in the same quarter of the previous year. Furthermore, projected quarterly revenue is $732.82 million, down from $746.6 million a year earlier. This negative outlook is reflected in the stock's recent performance, with DBI shares declining 2.4% to close at $3.73 on Monday. While the company reported better-than-expected fourth-quarter adjusted EPS results on March 20, the upcoming report carries a moderately negative sentiment for the stock. Current analyst ratings offer a neutral perspective: Telsey Advisory Group maintained a Market Perform rating with a $5 price target on June 3, and UBS maintained a Neutral rating while raising its price target from $4 to $4.5 on March 21. These price targets, despite the neutral ratings, sit above the recent closing price.

Key Decisions for Investors

• Investors should exercise caution leading into the June 10 earnings release, given the consensus forecast for a quarterly loss and reduced revenue year-over-year.
• Closely monitor the actual Q1 results against the expected loss of 6 cents per share and revenue of $732.82 million, as well as any forward-looking guidance provided by management, to assess the company's trajectory.
• Despite the anticipated weak quarter and recent share price decline, the neutral analyst ratings with price targets of $4.50 and $5.00 suggest that current holders might consider awaiting the earnings outcome before making significant portfolio adjustments.