Shoe Stock Steps Higher After Blowout Earnings Report

The stock sports a promising technical setup, too

Digital Content Manager
Aug 31, 2021 at 9:36 AM
facebook twitter linkedin

The shares of Designer Brands Inc (NYSE:DBI) are on their way up the charts this morning, last seen up 2.5% at $16.21 after the company's upbeat second-quarter earnings report. Designer Brands posted profits of 56 cents per share on $817.34 million in revenue, topping Wall Street's estimates. The footwear retailer also reported an 84.9% jump in same-sales for the second-quarter, which also easily topped estimates.. 

Analysts have yet to chime in, though there's plenty of room for upgrades. Of the six in coverage, five consider DBI a tepid "hold," compared to one "buy." Meanwhile, the stock sports a 12-month consensus target price of $20.75, which is a 24.3% premium to last night's close. 

Short sellers were hitting the exits ahead of today's earnings event. Short interest dropped 5.4% in the most recent reporting period. A further unwinding of these shorts could put additional wind at the equity's back, as the 7.33 million shares sold short make up 12.7% of the stock's available float, and would take over a week to cover at DBI's average daily pace of trading. 

The DSW parent's technical setup looks promising too. The security just blew past pressure at it 50-day moving average, which now looks to be providing support on the chart, while the 200-day moving average helped contain the stock's pullback from its May 18 two-year peak of $20.48. Plus, year-over-year, DBI is up over 106%. 


Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!