Why Did Designer Brands Stock Soar 9.38% Despite Revenue Miss?

Designer Brands' stock surged 9.38% in pre-market trading on April 8, 2025, reflecting a significant uptick in investor interest and confidence in the company's future prospects.

Designer Brands, a footwear and accessories discount retailer, reported a 5.4% year-on-year decline in sales for the fourth quarter of 2024, totaling $713.6 million. This miss in revenue estimates has raised concerns among investors about the company's financial performance and strategic direction.

Despite the recent setback, Designer Brands' stock price of $2.91 implies a forward price-to-earnings ratio of 5.8x, suggesting that the market may still see potential in the company's long-term growth prospects. However, investors are advised to exercise caution given the recent revenue miss and the company's current market valuation.