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Designer Brands (Designer Brands) ROE % : -31.81% (As of Jan. 2024)


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What is Designer Brands ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Designer Brands's annualized net income for the quarter that ended in Jan. 2024 was $-119 Mil. Designer Brands's average Total Stockholders Equity over the quarter that ended in Jan. 2024 was $373 Mil. Therefore, Designer Brands's annualized ROE % for the quarter that ended in Jan. 2024 was -31.81%.

The historical rank and industry rank for Designer Brands's ROE % or its related term are showing as below:

DBI' s ROE % Range Over the Past 10 Years
Min: -101.4   Med: 12.84   Max: 47.14
Current: 6.99

During the past 13 years, Designer Brands's highest ROE % was 47.14%. The lowest was -101.40%. And the median was 12.84%.

DBI's ROE % is ranked better than
60.93% of 1029 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.16 vs DBI: 6.99

Designer Brands ROE % Historical Data

The historical data trend for Designer Brands's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Designer Brands ROE % Chart

Designer Brands Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.17 -101.40 47.14 38.49 7.34

Designer Brands Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 44.20 10.46 33.07 9.57 -31.81

Competitive Comparison of Designer Brands's ROE %

For the Footwear & Accessories subindustry, Designer Brands's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Designer Brands's ROE % Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Designer Brands's ROE % distribution charts can be found below:

* The bar in red indicates where Designer Brands's ROE % falls into.



Designer Brands ROE % Calculation

Designer Brands's annualized ROE % for the fiscal year that ended in Jan. 2024 is calculated as

ROE %=Net Income (A: Jan. 2024 )/( (Total Stockholders Equity (A: Jan. 2023 )+Total Stockholders Equity (A: Jan. 2024 ))/ count )
=29.062/( (432.901+359.22)/ 2 )
=29.062/396.0605
=7.34 %

Designer Brands's annualized ROE % for the quarter that ended in Jan. 2024 is calculated as

ROE %=Net Income (Q: Jan. 2024 )/( (Total Stockholders Equity (Q: Oct. 2023 )+Total Stockholders Equity (Q: Jan. 2024 ))/ count )
=-118.792/( (387.584+359.22)/ 2 )
=-118.792/373.402
=-31.81 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Jan. 2024) net income data. ROE % is displayed in the 30-year financial page.


Designer Brands  (NYSE:DBI) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Jan. 2024 )
=Net Income/Total Stockholders Equity
=-118.792/373.402
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-118.792 / 3017.392)*(3017.392 / 2104.405)*(2104.405 / 373.402)
=Net Margin %*Asset Turnover*Equity Multiplier
=-3.94 %*1.4338*5.6358
=ROA %*Equity Multiplier
=-5.65 %*5.6358
=-31.81 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Jan. 2024 )
=Net Income/Total Stockholders Equity
=-118.792/373.402
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-118.792 / -184.032) * (-184.032 / -137) * (-137 / 3017.392) * (3017.392 / 2104.405) * (2104.405 / 373.402)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6455 * 1.3433 * -4.54 % * 1.4338 * 5.6358
=-31.81 %

Note: The net income data used here is four times the quarterly (Jan. 2024) net income data. The Revenue data used here is four times the quarterly (Jan. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Designer Brands ROE % Related Terms

Thank you for viewing the detailed overview of Designer Brands's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Designer Brands (Designer Brands) Business Description

Traded in Other Exchanges
Address
810 DSW Drive, Columbus, OH, USA, 43219
Designer Brands Inc is a designer, producer and retailer of footwear and accessories. The company operates in three reportable segments: the U.S. Retail segment, the Canada Retail segment, and the Brand Portfolio segment. The U.S. Retail segment operates the DSW Designer Shoe Warehouse banner through its direct-to-consumer U.S. stores and e-commerce site. The Canada Retail segment operates The Shoe Company and DSW banners through its direct-to-consumer Canada stores and e-commerce sites. The Brand Portfolio segment earns revenue from the sale of wholesale products to retailers, commissions for serving retailers as the design and buying agent for products under private labels and the sale of branded products through its direct-to-consumer e-commerce site at www.vincecamuto.com.
Executives
Deborah L Ferree officer: Pres. & Chief Mdsing Officer 4150 EAST FIFTH AVE., COLUMBUS OH 43219
Mark Haley officer: SVP, Controller & PAO 4055 TECHNOLOGY FOREST BLVD., STE. 210, THE WOODLANDS TX 77381
William L Jordan officer: SVP, General Counsel 810 DSW DRIVE, COLUMBUS OH 43219
James S. Weinberg officer: EVP; Chief Merchandising Ofcr 810 DSW DR,, COLUMBUS OH 43219
Jared A. Poff officer: SVP, Finance & Interim CFO DSW INC., 810 DSW DRIVE, COLUMBUS OH 43219
Mary Turner officer: EVP; President, Shoe Company 810 DSW DRIVE, COLUMBUS OH 43219
Harvey L Sonnenberg other: Director Nominee 399 THORNALL STREET, EDISON NJ 08837
Laura Denk officer: EVP;Pres DSW Designer ShoeWhse 810 DSW DRIVE, COLUMBUS OH 43219
Tami Fersko director 810 DSW DRIVE, COLUMBUS OH 43219
Richard A. Paul director 80 PINE STREET, SUITE 3202, NEW YORK NY 10005
Joanne Zaiac director DSW INC., 810 DSW DRIVE, COLUMBUS OH 43219
Joanna T Lau director 30 MONUMENT SQUARE, SUITE 220, CONCORD MA 01742
Douglas M. Howe officer: EVP, President of DSW N56 W17000 RIDGEWOOD DRIVE, MENOMONEE FALLS WI 53051-5660
Jay L Schottenstein director, 10 percent owner, officer: Chairman and CEO 1800 MOLER ROAD, COLUMBUS OH 43207
Joseph A. Schottenstein director 4300 EAST FIFTH AVENUE, COLUMBUS OH 43219