Designer Brands' (DBI) Q2 Earnings Upcoming: What to Expect?
Designer Brands Inc. DBI is likely to register a decrease in the top line when it reports second-quarter fiscal 2023 results on Sep 7, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $794.6 million, indicating a decline of 7.5% from the prior-year quarter’s reported level.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 48 cents per share, whereas it reported earnings per share of 62 cents in the year-ago quarter. The consensus estimate has been unchanged over the past 30 days.
Designer Brands has a trailing four-quarter earnings surprise of 112.4% on average. In the last reported quarter, the company missed the Zacks Consensus Estimate by 12.5%.
Key Factors to Note
Designer Brands is expected to have benefited from increased customer demand in the casual segment of its offerings, along with its brand-building strategy. The company’s focus on customer acquisition, optimizing assortment and developing brands is also expected to have been tailwinds in the fiscal second quarter.
DBI’s flexible business model has been enabling it to navigate a tough macro landscape. Also, the company's investments in product innovation and digital initiatives, along with its focus on operational execution and cost-control measures, are likely to have supported its fiscal second-quarter performance.
However, softness across Designer Brands’ dress and seasonal businesses is likely to have hurt its top-line performance in the to-be-reported quarter. The company has been grappling with a challenging operating landscape, with several issues like high inflation, supply-chain bottlenecks and currency headwinds. Of late, a higher inflationary environment has been affecting consumers’ discretionary spending, which, in turn, is expected to have hurt the company’s performance.
Also, high operating expenses have been concerning for the company over the past few quarters. For instance, in first-quarter fiscal 2023, the company’s operating expenses totaled $220.1 million, while the metric as a percentage of net sales increased 280 basis points to 29.7% year over year. Also, the impacts of changes in labor and raw material costs are anticipated to have hurt its margin and profitability in the quarter under review.
Designer Brands Inc. Price and EPS Surprise
Designer Brands Inc. price-eps-surprise | Designer Brands Inc. Quote
What the Zacks Model Unveils
Our proven model doesn’t predict an earnings beat for Designer Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, but that’s not the case here, as elaborated below.
Designer Brands has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The company currently has a Zacks Rank #3.
Stocks With Favorable Combination
Here are three companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
American Eagle Outfitters AEO currently has an Earnings ESP of +8.52% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to report bottom-line growth when it releases second-quarter fiscal 2023 results. The Zacks Consensus Estimate for earnings is pegged at 15 cents per share, indicating an increase of 275% from the year-ago quarter’s reported level.
The company’s revenues are anticipated to have declined year over year. The consensus mark for the same is pegged at $1.19 billion, implying a 0.9% decrease from that reported in the prior-year period.
Casey's General Stores CASY currently has an Earnings ESP of +1.03% and a Zacks Rank #3. The company is expected to register a bottom-line decline when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for earnings is pinned at $3.39 per share, indicating a fall of 17.1% from the year-ago quarter’s reported number.
The company’s revenues are anticipated to decrease year over year. The consensus mark for the same is pinned at $3.85 billion, indicating a deterioration of 13.5% from that reported in the year-ago quarter. CASY has a trailing four-quarter average earnings surprise of 7.5%.
lululemon athletica LULU currently has an Earnings ESP of +2.10% and a Zacks Rank of 3. LULU is likely to record top-line growth when it reports second-quarter fiscal 2023 results.
The Zacks Consensus Estimate for revenues is pegged at $2.2 billion, indicating a 16.1% improvement from the prior-year quarter’s actual. The consensus mark for earnings is pinned at $2.53 per share, implying a 15% increase from that reported in the comparable period of 2022. LULU has a trailing four-quarter earnings surprise of 9.9%, on average.
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American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
lululemon athletica inc. (LULU) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
Designer Brands Inc. (DBI) : Free Stock Analysis Report
