1. Pomerantz LLP is investigating potential securities fraud involving Designer Brands. 2. DBI withdrew 2025 guidance due to poor market conditions and consumer sentiment. 3. Stock price fell 18.23% to $3.05 following the negative news. 4. Investors may join a class action for damages against DBI's executives. 5. The situation reflects ongoing volatility in the retail sector.
DBI's significant stock drop following guidance withdrawal indicates major investor loss of confidence. Historical examples show that similar situations often lead to prolonged poor performance.
The investigation and guidance withdrawal are likely to deter investors, leading to heightened sensitivity about DBI's future performance.
Immediate effects on stock price are expected, especially if the litigation progresses. Retail sector volatility may prolong recovery but initial impact is acute.
NEW YORK, June 22, 2025 /PRNewswire/ --June 20, 2025 (PRNEWSWIRE) Pomerantz LLP is investigating claims on behalf of investors of Designer Brands Inc. ("Designer Brands" or the "Company") (NYSE: DBI). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Designer Brands and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
Click here for information about joining the class action
On June 10, 2025, Designer Brands issued a press release reporting its financial result for the first quarter of 2025. Among other items, Designer Brands announced its "decision to withdraw our 2025 guidance for the time being," citing "a soft start to 2025 amid an unpredictable macro environment and deteriorating consumer sentiment" and the decision to "shift[] our near-term focus to amplifying value in our retail channels, preserving margins, controlling costs, and mitigating the impact of tariffs as part of our response to this volatility."
On this news, Designer Brands' stock price fell $0.68 per share, or 18.23%, to close at $3.05 per share on June 10, 2025.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
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CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980
SOURCE Pomerantz LLP