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Designer BrandsDBI +0.31%71 Return-on-Tangible-Equity is 6.63% as of Apr. 2026, which is 35% below its 10-year median of 10.22. 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 1,019 Manufacturing - Apparel & Accessories companies, Designer Brands ranks better than 79.29% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Designer Brands's annualized net income for the quarter that ended in Apr. 2026 was $5 Mil. Designer Brands's average shareholder tangible equity for the quarter that ended in Apr. 2026 was $70 Mil. Therefore, Designer Brands's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 6.63%.
The historical rank and industry rank for Designer Brands's Return-on-Tangible-Equity or its related term are showing as below:
DBI'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -136.1 Med: 10.22 Max: 70.71
Current: 14.75
During the past 13 years, Designer Brands's highest Return-on-Tangible-Equity was 70.71%. The lowest was -136.10%. And the median was 10.22%.
DBI's Return-on-Tangible-Equity is ranked better than 79.29% of 1019
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.47
vs DBI: 14.75
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.
Designer Brands Return-on-Tangible-Equity Related Terms
Designer Brands Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Designer Brands's Return-on-Tangible-Equity 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.
DBI vs FWDI, RCKY, FOSL: Return-on-Tangible-Equity Comparison
For the Footwear & Accessories subindustry, Designer Brands's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Designer Brands's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Designer Brands's Return-on-Tangible-Equity falls into.
* 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 6.63% mean?
Designer Brands (DBI) has a Return-on-Tangible-Equity of 6.63% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Designer Brands and its competitors. This is 35% below median its historical median of 10.22. According to the industry distribution chart, Designer Brands ranks #211 out of 1019 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 20.7%.
Is Designer Brands' Return-on-Tangible-Equity too high?
Designer Brands' current Return-on-Tangible-Equity of 6.63% is 35% below median its 10-year median of 10.22. The Manufacturing - Apparel & Accessories industry median Return-on-Tangible-Equity is 4.47. Designer Brands' value of 6.63% is 48.3% above this industry median. Based on the distribution chart, Designer Brands ranks #211 out of 1019 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position 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' Return-on-Tangible-Equity compare to FWDI and RCKY?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Designer Brands ranks #211 out of 1019 companies for Return-on-Tangible-Equity. This places Designer Brands in the top 21% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 4.47. Designer Brands' value of 6.63% is 48.3% above this benchmark. While the company's 10-year median is 10.22 vs. the industry median of 4.47, Designer Brands has consistently been above 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 Return-on-Tangible-Equity for a Manufacturing - Apparel & Accessories company?
The median Return-on-Tangible-Equity among Manufacturing - Apparel & Accessories companies is 4.47, based on 1,019 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Designer Brands's current Return-on-Tangible-Equity of 6.63% is 48.3% above 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Designer Brands and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Return-on-Tangible-Equity is 4.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Designer Brands's current Return-on-Tangible-Equity is 6.63%, which is 35% below median its own 10-year median of 10.22. 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 Return-on-Tangible-Equity is 6.63%, which is 35% below median its 10-year median of 10.22 and 48.3% above the Manufacturing - Apparel & Accessories industry median of 4.47. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Designer Brands (DBI), the current Return-on-Tangible-Equity is 6.63% 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:
Return-on-Tangible-Equity: 6.63% (35% below median its 10-year median of 10.22)
GF Value™: $6.75 vs. price of $6.57 (2.7% below fair value)
Industry Position: 48.3% above the Manufacturing - Apparel & Accessories median (#211 of 1019)
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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