From Le Tigre To Nike: Analyst Sees Bright Spots For Designer Brands Amid Concerns
Portfolio Pulse from Nabaparna Bhattacharya
Telsey Advisory Group analyst Dana Telsey reiterated the Market Perform rating on Designer Brands Inc. (DBI), raising the price target to $14 from $8. DBI reported a Q2 FY23 sales decline of 7.8% to $792.2 million, beating the analyst consensus. The company's new offerings from Le Tigre and Keds, as well as lean inventory levels, provide some incremental confidence in the H2 outlook. DBI is also expected to benefit from becoming the exclusive licensee for Hush Puppies in the U.S. and Canada. DBI shares are trading lower by 5.33% to $11.98.
September 08, 2023 | 6:16 pm
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POSITIVE IMPACT
Despite a Q2 FY23 sales decline, DBI beat the analyst consensus and has a positive outlook for H2 due to new offerings and exclusive licensing deals.
DBI's Q2 FY23 sales beat the analyst consensus despite a 7.8% YoY decline. The company's new offerings from Le Tigre and Keds, as well as lean inventory levels, provide some incremental confidence in the H2 outlook. DBI is also expected to benefit from becoming the exclusive licensee for Hush Puppies in the U.S. and Canada.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Nike, Inc. (NKE) is expected to return and contribute to DBI's H2 outlook.
Nike, Inc. (NKE) is expected to return and contribute to DBI's H2 outlook, which could potentially boost NKE's stock.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50