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Designer Brands' (DBI) Q4 Earnings Upcoming: What to Expect

Designer Brands DBI is likely to register a decrease in the top line when it reports fourth-quarter fiscal 2022 results on Mar 16, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $793 million, indicating a drop of 3.6% from the prior-year quarter’s level.

The Zacks Consensus Estimate for the fourth quarter is pegged at a loss of 2 cents per share, which compared unfavorably with earnings per share of 15 cents recorded in the year-earlier quarter. The consensus estimate has been stable over the past 30 days.

Designer Brands has a trailing four-quarter earnings surprise of 32% on average. In the last reported quarter, the company missed the Zacks Consensus Estimate by 9.5%.

Key Factors to Note

Designer Brands’ quarterly performance might have been hurt by a challenging operating landscape, including numerous issues like supply-chain bottlenecks, inflation, higher costs and currency headwinds. Higher inflationary pressures have been hitting the consumers’ discretionary spending and in turn, weighing on the company’s performance.

Any deleverage in SG&A costs might have been added deterrents. All these limitations might have hurt the company’s performance during the quarter under review.

On the flip side, the company is smoothly progressing in its brand-building strategy. It is also focused on customer acquisition, optimizing assortment and developing brands to aid growth. Designer Brands’ flexible business model has been helping the company navigate a tough macro landscape.

What the Zacks Model Unveils

Our proven model does not conclusively 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. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Designer Brands Inc. Price and EPS Surprise

Designer Brands Inc. Price and EPS Surprise
Designer Brands Inc. Price and EPS Surprise

Designer Brands Inc. price-eps-surprise | Designer Brands Inc. Quote

Designer Brands has an Earnings ESP of 0.00% and carries a Zacks Rank #4 (Sell).

Stocks with a Favorable Combination

Here are three companies, which according to our model, have the right combination of elements to beat on earnings:

Ollie's Bargain Outlet OLLI currently has an Earnings ESP of +4.12% and a Zacks Rank of 2. OLLI is likely to register an increase in the bottom line from the year-ago fiscal quarter’s reported figure when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has been stable at 80 cents per share over the past 30 days, suggesting a 15.9% rise from the year-ago fiscal quarter’s reported number.

Ollie's Bargain Outlet’s top line is expected to grow from the prior-year quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $543 million, suggesting an 8.3% increase from the figure reported in the prior-year quarter. OLLI delivered a negative earnings surprise of 18.7%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

PVH Corp PVH currently has an Earnings ESP of +0.71% and a Zacks Rank of 3. PVH is likely to register a decrease in the bottom line from the year-ago quarter’s reported figure when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has been stable at $1.64 per share over the past 30 days, suggesting a 42.3% decline from the year-ago quarter’s reported number.

PVH Corp’s top line is expected to fall from the prior-year quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.34 billion, suggesting a 3.8% decline from the figure reported in the prior-year fiscal quarter. PVH delivered an earnings beat of 22.9%, on average, in the trailing four quarters.

Skechers SKX currently has an Earnings ESP of +9.74% and a Zacks Rank of 3. The company is likely to register a bottom-line decline when it reports first-quarter 2023 numbers. The Zacks Consensus Estimate of 60 cents earnings per share suggests a decline of 22.1% from the year-ago quarter.

Skechers’ top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.84 billion, which indicates a rise of 1% from the figure reported in the prior-year quarter. SKX has a trailing four-quarter earnings surprise of 3.8%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report

PVH Corp. (PVH) : Free Stock Analysis Report

Ollie's Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report

Designer Brands Inc. (DBI) : Free Stock Analysis Report

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