Why Designer Brands (DBI) Stock Is Up Today

What Happened?

Shares of footwear and accessories discount retailer Designer Brands (NYSE:DBI) jumped 2.8% in the morning session as the stock extended its positive momentum after an analyst from UBS raised the company's price target. 

UBS analyst Jay Sole increased the price target on the footwear and accessories retailer to $4.00 from $3.00, representing a 33.33% raise, while maintaining a 'Neutral' rating on the shares. The investment firm cited modestly improved fundamentals for the company during the second quarter. This positive adjustment comes ahead of Designer Brands' upcoming earnings report, which is expected on September 9. 

Adding to the optimistic sentiment, the consensus earnings per share (EPS) estimate for the upcoming report has been revised 53.3% higher over the last 30 days.

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What Is The Market Telling Us

Designer Brands’s shares are extremely volatile and have had 69 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock gained 9.9% on the news that an analyst from UBS raised the company's price target. 

Designer Brands is down 11.9% since the beginning of the year, and at $4.67 per share, it is trading 36.7% below its 52-week high of $7.38 from September 2024. Investors who bought $1,000 worth of Designer Brands’s shares 5 years ago would now be looking at an investment worth $746.01.

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