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Designer BrandsDBI +0.31%71 Interest Coverage is 1.59 as of Apr. 2026, which is 87% below its 10-year median of 12.11. GuruFocus rates DBI with a GF Score™ of 71/100 and a GF Value™ of $6.75 (Fairly Valued). The stock has 6 warning signs investors should review. Among 745 Manufacturing - Apparel & Accessories companies, Designer Brands ranks worse than 80.94% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Designer Brands's
Operating Income
for the
three
months ended in Apr. 2026 was $16 Mil. Designer Brands's Interest Expense for the
three
months ended in Apr. 2026 was $-10 Mil.
Designer Brands's interest coverage for the quarter that ended in Apr. 2026 was 1.59.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Designer Brands's Interest Coverage or its related term are showing as below:
DBI'
s Interest Coverage Range Over the Past 10 Years
Min: 0.89 Med: 12.11 Max: 755.57
Current: 1.47
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Designer Brands Interest Coverage Related Terms
Designer Brands Interest Coverage Historical Data
* Premium members only.
The historical data trend for Designer Brands's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
DBI vs FWDI, RCKY, FOSL: Interest Coverage Comparison
For the Footwear & Accessories subindustry, Designer Brands's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Designer Brands's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Designer Brands's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Designer Brands (DBI) has a Interest Coverage of 1.59 as of Apr. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Designer Brands and its competitors. This is 87% below median its historical median of 12.11. Over the past decade, Designer Brands' Interest Coverage has ranged from 0.89 to 755.57. According to the industry distribution chart, Designer Brands ranks #603 out of 745 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 80.9%.
Is Designer Brands' Interest Coverage too high?
Designer Brands' current Interest Coverage of 1.59 is 87% below median its 10-year median of 12.11. Over the past 10 years, this metric has ranged from a low of 0.89 to a high of 755.57. The Manufacturing - Apparel & Accessories industry median Interest Coverage is 5.30. Designer Brands' value of 1.59 is 70% below this industry median. Based on the distribution chart, Designer Brands ranks #603 out of 745 companies in the Manufacturing - Apparel & Accessories industry, which is in the bottom quartile relative to peers. Overall, Designer Brands has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Designer Brands' Interest Coverage compare to FWDI and RCKY?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Designer Brands ranks #603 out of 745 companies for Interest Coverage. This places Designer Brands in the lower half of its industry. The industry median Interest Coverage is 5.30. Designer Brands' value of 1.59 is 70% below this benchmark. Historically, Designer Brands' own Interest Coverage has ranged from 0.89 to 755.57 over the past decade. While the company's 10-year median is 12.11 vs. the industry median of 5.30, Designer Brands has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Manufacturing - Apparel & Accessories company?
The median Interest Coverage among Manufacturing - Apparel & Accessories companies is 5.30, based on 745 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Designer Brands's current Interest Coverage of 1.59 is 70% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Designer Brands and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Interest Coverage is 5.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Designer Brands's current Interest Coverage is 1.59, which is 87% below median its own 10-year median of 12.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Designer Brands stock overvalued right now?
Based on GuruFocus' analysis, Designer Brands (DBI) is currently considered Fairly Valued. The stock's GF Value™ is $6.75, compared to a current price of $6.57 — trading 2.7% below its estimated fair value. The current Interest Coverage is 1.59, which is 87% below median its 10-year median of 12.11 and 70% below the Manufacturing - Apparel & Accessories industry median of 5.30. Designer Brands' overall GF Score™ is 71/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Designer Brands (DBI), the current Interest Coverage is 1.59 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Designer Brands (DBI) Overvalued in 2026?
Based on GuruFocus' analysis, Designer Brands stock appears to be undervalued.
The current stock price of $6.57 is trading 2.7% below its estimated GF Value™ of $6.75.
GuruFocus considers Designer Brands to be Fairly Valued.
Key valuation signals for DBI:
Interest Coverage: 1.59 (87% below median its 10-year median of 12.11)
GF Value™: $6.75 vs. price of $6.57 (2.7% below fair value)
Industry Position: 70% below the Manufacturing - Apparel & Accessories median (#603 of 745)
No single metric tells the full story. See the DBI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Designer Brands Inc is a designer, producer, and retailer of footwear and accessories. The company operates in two reportable segments: the Retail segment and the Brand Portfolio segment. The Retail segment, which derives key revenue, operates the DSW Designer Shoe Warehouse ("DSW") banner through its direct-to-consumer stores and e-commerce sites in the United States ("U.S.") and Canada, and the Shoe Co. and Rubino banners through its direct-to-consumer stores and e-commerce sites in Canada. The Brand Portfolio segment principally earns revenue from the wholesale of its exclusive and licensed brands to retailers, its Retail segment, and international distributors, and the sale of its Vince Camuto, Keds, and Topo brands through direct-to-consumer e-commerce sites.
71GF Score
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