Designer Brands (BDI) Soars 48.45% on Earnings Blowout

We recently published Small But Savage: 10 Stocks Delivering Outsized Gains. Designer Brands Inc. (NYSE:DBI) is one of the best performers on Tuesday.

Designer Brands soared to a new record high on Tuesday, jumping 48.45 percent to finish at $7.20 apiece as investor sentiment was boosted by its earnings performance in the third quarter of the year.

In an updated report on the same day, Designer Brands Inc. (NYSE:DBI) said it grew its attributable net income by 40 percent to $18.21 million from $13.01 million in the same period last year, despite net sales declining by 3.2 percent to $752.4 million from $777.19 million year-on-year.

Net sales dropped due to lower retail sales from both its US and Canada operations, as well as comparable store sales.

“While macroeconomic pressures persist, we are confident in our ability to navigate the near-term environment and continue making progress on our long-term strategies,” said Designer Brands Inc. (NYSE:DBI) Chief Executive Officer Doug Howe.

For the full fiscal year of 2025, Designer Brands Inc. (NYSE:DBI) expects net sales to dip by 3 to 5 percent and adjusted operating profit to settle between $50 million to $55 million.

In other developments, shareholders of the company’s Class A and B common shares as of December 5 are set to receive $0.05 worth of cash dividends on December 19, 2025.

While we acknowledge the potential of DBI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.