Designer Brands announced better-than-expected second-quarter results
Designer Brands Inc (NYSE:DBI) is up 0.5% at $16.59 at last glance, following the DSW parent's second-quarter results. The company shared better-than-expected earnings of 62 cents per share on revenue of $859.32 million and raised its full-year forecast. CEO Roger Rawlins said the "back-to-school season, a new holiday period for Designer Brands, has been performing well, supported by an increased assortment of athletic and kid's products."
On the charts, DBI has been chopping lower since its Aug. 16, one-year high of $19.38, though a floor appears to be emerging at the $16.40 level. Plus, support at the 30-day moving average caught yesterday's pullback. Year-to-date, the equity is up 17.4%.
Analysts have yet to respond to the earnings event, but there is plenty of room for optimism. Of the four in coverage, three carry a "hold" rating, and one a "buy."
It's also worth noting that though short interest has started to unwind, it still accounts for 12.7% of the stock's available float. It would take over a week to buy back these bearish bets, at DBI's average pace of trading.