DSW Q3 Profit on Target, Sales Miss

DSWColumbus, OH—DSW Inc. today reported third quarter earnings in line with analysts’ estimate although its sales missed.

For the quarter ended Nov. 2, the footwear and accessories retailer posted net income of

$53.6 million, or 58 cents a share, compared with net income of $46.6 million, or 51 cents a share, during third quarter 2012. On an adjusted basis, earnings rose to 58 cents a share from 51.

Net revenue rose 7% to $633 million while comparable store sales decreased 0.7%.

Analysts were expecting earnings of 58 cents a share on revenue of $647.6 million.

“We achieved our highest level of profitability in the third quarter while navigating through a promotional environment,” said Mike MacDonald, president/ceo. “We were encouraged by the improvement in traffic and sales at the end of the quarter, as the fall selling season got off to a delayed start.”

DSW forecast that comparable store sales would remain flat through the end of its fiscal year with earnings predicted at between $1.80 to $1.90 a share. Analysts’ estimate expects $1.90 a share.

 

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Jeff Prine

Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com