Footwear and accessories discount retailer Designer Brands (NYSE:DBI) will be reporting earnings tomorrow morning. Here's what to look for.
Last quarter Designer Brands reported revenues of $742.1 million, down 10.7% year on year, missing analyst expectations by 1.46%. It was a weak quarter for the company, with a miss of analysts' revenue and EPS estimates.
Is Designer Brands buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting Designer Brands's revenue to decline 8.56% year on year to $785.7 million, a deceleration on the 5.14% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.44 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates five times over the last two years.
Looking at Designer Brands's peers in the footwear retailer segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Boot Barn (NYSE:BOOT) delivered top-line growth of 4.88% year on year, beating analyst estimates by 5.79%, and Shoe Carnival (NASDAQ:SCVL) reported revenue decline of 5.65% year on year, exceeding estimates by 2.89%. Boot Barn traded up 5.4% on the results, and Shoe Carnival (NYSE:CCL) was down 5.9%.
Read the full analysis of Boot Barn's and Shoe Carnival's results on StockStory.
The fears around raising interest rates have been putting pressure on stocks and while some of the footwear retailer stocks have fared somewhat better, they have not been spared, with share price declining 7.16% over the last month. Designer Brands is up 5.29% during the same time, and is heading into the earnings with analysts' average price target of $9.3, compared to share price of $10.7.
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The author has no position in any of the stocks mentioned.