Designer Brands, formerly known as DSW, (DBI) will report Q1 earnings tomorrow before the market opens (7:00 AM ET last quarter) with a conference call to follow at 8:30 AM ET.
Current Cap IQ consensus estimates Q1 EPS of $0.42 (vs $0.39 in 2018) on revs of $875 mln (+23% Y/Y) with comps +2.2%
DBI may update FY 19 guidance which currently calls for EPS of $1.80-1.90 on revs up low double digits.
Current Cap IQ Consensus estimates FY 19 EPS of $1.86 (vs $1.66 last year) on revs +12.5% to $3.58 bln
Last quarter, DBI missed on EPS, reported revs in-line, and provided downside FY 19 guidance. Comps +5.4% vs 5.2% estimate
The company also announced the new name and introduced 3-year financial targets: EPS of $2.65-2.75 on 13% annual compound growth rate by 2021, low-single digit comps
New Company direction (4 key initiatives):
Shoe Company gives them access to the Canadian market and ability to fill in around DSWs
DSW digital capabilities will be applied to Shoe Company and Camuto
Expand wholesale business that Camuto has been operating across DSW
Build private brands
DBI has a $1.4 bln market cap and trades at a forward PE of 12x vs competitors TLRD (4.1 4.1x), KSS (11x), M (7.6x), and BURL (23x)
Short interest sits at ~10% of its ~64 mln float
TRADE: DBI JUN21 17.5P