Designer Brands May Be Pinched By Reduced Discretionary Spending In Q2: Analyst Warns
Portfolio Pulse from Nabaparna Bhattacharya
Telsey Advisory Group analyst Dana Telsey reiterated the Market Perform rating on Designer Brands Inc. (DBI) with a price target of $8. DBI is expected to report Q2 results on September 7. The analyst anticipates a total sales decline of 6.8% Y/Y to $801 million, driven by same-store sales contraction of 6.8%. The reintroduction of Nike, Inc. (NKE) products is expected to drive incremental revenue beginning in Q4.
August 31, 2023 | 6:27 pm
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POSITIVE IMPACT
The reintroduction of Nike products in DBI stores is expected to drive incremental revenue beginning in Q4.
The reintroduction of Nike products in DBI stores could potentially increase Nike's sales and positively impact its stock.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
DBI's Q2 results are expected to show a sales decline of 6.8% Y/Y. The reintroduction of Nike products is expected to boost Q4 revenue.
The analyst's forecast of a sales decline for DBI in Q2 indicates potential negative impact on the stock. However, the reintroduction of Nike products could provide a boost in Q4.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100