DBI - Designer Brands -7% after stinging downgrade from Susquehanna

Designer Brands ([[DBI]] -6.7%) falls after Susquehanna lowers its rating to Negative from Neutral."DBI faces significant challenges coming out of the crisis and we do not expect a recovery to pre-crisis levels for the foreseeable future and we think downside risk has increased," warns analyst Sam Poser."Covid-19 has accelerated what has been a structural shift in consumer tastes and demand for more athletic and athletic lifestyle product. Selling athletic product is not DBI's core competency. Management recognizes the need to pivot its assortment more toward athletic and away from dress, with plans to have athletic to encompass 40-50% of fall assortment. However, that leaves 50%-60% in struggling categories such as fashion and dress," he adds.DBI's gross margin is seen being pressured more than anticipated in the second half of the year, primarily from de-leverage in BD&O and elevated shipping expense due to the shift to e-commerce."We believe increasing the athletic

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Designer Brands -7% after stinging downgrade from Susquehanna