Designer Brands Inc. (DBI) vs Fossil Group, Inc. (FOSL)

Designer Brands Inc. and Fossil Group, Inc. are both Footwear & Accessories companies. Designer Brands Inc. and Fossil Group, Inc. are of similar size ($337.7M and $324.1M). Fossil Group, Inc. has negative trailing earnings, so its P/E is not meaningful; Designer Brands Inc. trades at 21.9×. Designer Brands Inc. grew revenue faster over the last twelve months: −0.84% against −9.10%. Designer Brands Inc. has the higher net margin (0.61% vs −7.09%) and the higher return on invested capital (9.58% vs −1.76%). Across the 19 metrics below, Designer Brands Inc. leads on 14 and Fossil Group, Inc. on 5.

Valuation

Metric DBI FOSL Footwear & Accessories median
P/E 21.89 n/m 15.26
P/S 0.11 0.37 1.16
P/B 1.04 4.95 2.59
Price to free cash flow n/m n/m 12.20
EV/EBITDA 4.25 83.71 8.91
EV/Sales 0.24 0.50 1.24
Earnings yield 4.57% (20.67%) 6.11%
Free cash flow yield (27.30%) (10.15%) 4.85%

Profitability

Metric DBI FOSL Footwear & Accessories median
Gross margin 45.77% 56.73% 49.76%
Operating margin 3.56% (0.57%) 8.44%
Net margin 0.61% (7.09%) 5.64%
Free cash flow margin 4.15% (3.77%) 8.18%
Return on equity 6.10% (67.21%) 12.45%
Return on assets 0.87% (10.29%) 6.15%
Return on invested capital 9.58% (1.76%) 9.58%

Growth

Metric DBI FOSL Footwear & Accessories median
Revenue growth (TTM) (0.84%) (9.10%) 3.68%
EPS growth (last fiscal year) 15.00% 25.26% —
Revenue growth, 5-year CAGR 5.30% (9.04%) 7.17%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DBI FOSL Footwear & Accessories median
Debt to equity 1.41 2.74 0.46
Current ratio 1.22 1.76 1.96
Net debt to EBITDA 3.59 (13.61) 1.00

Dividend

Metric DBI FOSL Footwear & Accessories median
Dividend yield 2.11% — 2.20%
Payout ratio 0.10 0.00 0.00

Size

Metric DBI FOSL Footwear & Accessories median
Market cap 324.13m 337.68m 614.40m

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