Designer Brands Inc. (NYSE:DBI), the parent company of footwear retailer DSW, saw its stock price touch a 52-week low this week, dipping to $3.20. According to InvestingPro data, the company maintains a notable 5.13% dividend yield despite its challenges, and analysts project a return to profitability with earnings of $0.40 per share in fiscal 2026. The company, which has faced significant headwinds in the retail sector, has seen a dramatic 60% decline over the past year, with a concerning 40.45% drop in just the last six months. This latest price level reflects a challenging period for the retailer, as it grapples with shifting consumer trends and competitive pressures. The 52-week low serves as a stark indicator of the hurdles Designer Brands Inc. must overcome to regain its footing in a rapidly evolving market landscape. InvestingPro analysis reveals the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, part of the analysis available for over 1,400 US stocks.
In other recent news, Designer Brands Inc. reported its fourth-quarter earnings for fiscal year 2024, posting an earnings per share (EPS) of -$0.44, which slightly exceeded the analyst forecast of -$0.47. However, the company’s revenue fell short of expectations, coming in at $713.6 million against a projected $723.21 million. Despite the revenue miss, Designer Brands achieved positive comparable sales for the first time in nine quarters, driven by a strategic focus on athleisure and private label brands. The company also returned $79 million to shareholders through dividends and share repurchases. For the full year, Designer Brands reported net sales of $3 billion, a 1.7% decrease on a 52-week comparable basis, and a full-year adjusted EPS of $0.27. Looking ahead, the company anticipates full-year sales growth in the low single digits for 2025, with an EPS range of $0.30 to $0.50. Designer Brands plans to invest $45 million to $55 million in capital expenditures and expects gradual performance improvements throughout the year, although the first quarter may underperform compared to the previous year.
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