Shares of Designer Brands (DBI 1.43%) 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.
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.
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.