What happened
Shares of Designer Brands (DBI +7.10%) sprinted 10.2% higher Monday on no company-specific news, though the Dow Jones Industrial Average was up over 200 points after President Trump signed the new stimulus bill.
So what
Extra money in consumers' pockets could point to a new round of spending and more footwear sales. And Trump agrees with House Speaker Nancy Pelosi, the California Democrat, that the stimulus package for individuals needs to be a lot more. He's pushing for $2,000, with an extra $600 for families with children, meaning a family of four would receive $5,200.
Image source: Designer Brands.
Now what
Designer Brands has been leaning heavily into the trends that have been shaping consumer choices since the pandemic, namely fitness footwear. The company is known primarily as a fashion and casual shoe outlet, but home-fitness and exercise have been important trends for a number of similar companies.
But because there is such a tenuous connection between the stimulus checks and whether they will flow to Designer Brands' top line, investors may see today's gains quickly reversed.
