MW Athletic trends have given DSW parent Designer Brands a boost but Nike departure looms
7:57 AM ET 9/8/21 | MarketWatch
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UBS analysts caution that fiscal 2022 could be tough for Designer Brands
Designer Brands Inc. has gotten a bump from popular athletic fashions, but growth could hit a wall when its relationship with Nike Inc.ends, UBS analysts say.
Designer Brands (DBI), parent to DSW, Shoe Warehouse and Camuto Group, has seen shares soar 72.8% for the year to date and reported recent earnings that far exceeded expectations.
The benchmark S&P 500 index SPX is up 20.3% for 2021 so far.
"Athleisure continues to be the hottest trend in footwear," Bill Jordan, president of Designer Brands told MarketWatch. The company has jumped into the more casual trends that took hold even before COVID-19, though there are also "green shoots" in dress shoes and optimism about seasonal items like boots. Jordan says the company also benefits from supply chain advantages like manufacturing its own shoes and investing in digital.