Designer Brands (DBI) Reports Q1 Loss, Misses Revenue Estimates

Core Insights - Designer Brands (DBI) reported a quarterly loss of $0.26 per share, significantly missing the Zacks Consensus Estimate of $0.01, marking an earnings surprise of -2,700% [1] - The company generated revenues of $686.91 million for the quarter ended April 2025, falling short of the Zacks Consensus Estimate by 6.67% and down from $746.6 million year-over-year [2] - Designer Brands has underperformed the market, with shares down approximately 30.2% year-to-date compared to the S&P 500's gain of 2.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.36 on revenues of $796.9 million, while for the current fiscal year, the estimate is $0.40 on revenues of $3.07 billion [7] - The estimate revisions trend for Designer Brands is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Retail - Apparel and Shoes industry, to which Designer Brands belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Designer Brands' stock performance [5]