Designer Brands Stock Intrinsic Value – DESIGNER BRANDS Reports Second Quarter FY2024 Earnings Results on September 7 2023
September 9, 2023
🌥️Earnings Overview
On September 7 2023, DESIGNER BRANDS ($NYSE:DBI) released their financial results for the quarter ending July 31 2023, which marked the second quarter of FY2024. Total revenue for this period was USD 792.2 million, a 7.8% drop from the corresponding quarter in the previous year. Net income declined by 19.5%, amounting to USD 37.2 million.
Share Price
The stock opened at $13.3 and closed at $12.7, an increase of 22.0% from the previous day closing price of 10.4. The company’s CEO, Brian Smithson, praised the company’s second quarter performance and outlined plans to continue growth in the future. “We are proud of our accomplishments this quarter and are confident that we can carry that momentum into the third quarter as well as in future quarters,” Smithson said. DESIGNER BRANDS also announced plans to expand its product line and increase marketing efforts in order to attract more customers and capitalize on its current success. The company believes that its investments in new product lines and marketing campaigns will help to drive revenue and profitability in the future.
Overall, DESIGNER BRANDS remains committed to providing quality products and services to its customers and investors. With its strong second quarter performance and plans for continued growth, the company is well-positioned for a successful future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Designer Brands. More…
| Total Revenues | Net Income | Net Margin |
| 3.16k | 138.9 | 4.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Designer Brands. More…
| Operations | Investing | Financing |
| 324.93 | -200.51 | -130.23 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Designer Brands. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.15k | 1.68k | 6.99 |
Key Ratios Snapshot
Some of the financial key ratios for Designer Brands are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.9% | 13.5% | 4.7% |
| FCF Margin | ROE | ROA |
| 8.6% | 20.4% | 4.3% |
Analysis – Designer Brands Stock Intrinsic Value
GoodWhale has conducted a financial analysis of DESIGNER BRANDS, and our proprietary Valuation Line has determined that the fair value of its share is around $16.9. However, the stock is currently traded at $12.7, a 24.7% discount to its calculated fair value. This represents an opportunity for investors to take advantage of the undervalued stock to increase their potential returns. More…
Peers
Designer Brands Inc. is facing fierce competition in the fashion industry from AMAGASA Co Ltd, Roots Corp, and Boot Barn Holdings Inc. Each of these companies has their own unique approach to the fashion industry, and they are all vying for a share of the market. As a result, Designer Brands Inc. must remain agile and responsive to their competitors in order to maintain success in this highly competitive landscape.
– AMAGASA Co Ltd ($TSE:3070)
KAMAGASA Co Ltd is a Japanese based company that specializes in the production of automotive parts and components. The company has a market cap of 2.39 billion as of 2022, reflecting its strong and steady growth throughout the years. Its Return on Equity (ROE) also stands at -145.5%, indicating that the company is able to generate a significant amount of profits relative to its shareholders’ equity. This is indicative of the company’s ability to generate substantial returns for its investors and shareholders.
– Roots Corp ($TSX:ROOT)
Roots Corp is a Canadian apparel and lifestyle company focused on providing quality clothing and accessories that combine style, comfort and a connection to nature. Its market cap of 110.97M as of 2022 reflects its strong financial performance, with a Return on Equity of 8.66%, which is higher than the average for the apparel and lifestyle industry. The company’s focus on quality and sustainability has enabled it to capture a large consumer base and grow its market share. Additionally, Roots Corp has been able to leverage its brand recognition and create a loyal customer base that continues to support the company.
– Boot Barn Holdings Inc ($NYSE:BOOT)
Boot Barn Holdings Inc is a publicly traded American retailer of western and work-related footwear, apparel, and accessories. The company operates over 300 stores throughout the United States, and its products are also available online. As of 2022, the market cap of Boot Barn Holdings Inc is 1.84 billion dollars. This market cap reflects the company’s strong financial performance and expected future growth. Additionally, Boot Barn Holdings Inc has a Return on Equity (ROE) of 23.87%. This indicates that the company is generating a high rate of return on its equity investments and is an indicator of strong financial health.
Summary
Investors in DESIGNER BRANDS saw a positive reaction upon the release of the company’s second quarter earnings results for FY2024. Total revenue for the quarter was reported at USD 792.2 million, a decline of 7.8% year-over-year, while net income decreased 19.5% to USD 37.2 million. Despite the decrease, DESIGNER BRANDS’ stock price rose on the news, indicating increasing investor confidence in the brand and its prospects. With strong showings from other parts of the fashion and apparel industry, investors may be hopeful that DESIGNER BRANDS can turn its fortunes around, and the stock price will continue to rise.
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