For the quarter ended May 4, the footwear and accessories specialty retailer posted earnings of $34.5 million, or 75 cents a share, compared with $39.8 million, or 89 cents a share, in the same quarter last year. Excluding one-time charges, DSW’s adjusted earnings were $1 a share which beat analysts’ estimate for 89 cents a share.
Net revenue rose 7.7% to $601.4 million, beating analysts’ estimate for $558.6 million in sales. Comparable store sales declined 2.4%.
Like many retailers reporting in the last week, DSW said sales early in the quarter were hindered by cooler-than-normal weather, but they rebounded in the final weeks.
“DSW’s first quarter performance demonstrated remarkable execution flexibility in a time of unprecedented swings in weather patterns,” said Mike MacDonald, president/ceo. “Our merchandising and supply chain teams were able to adjust merchandise receipts in weather sensitive categories while continuing to support trending categories with fresh product flow. We were pleased with the strong sales rebound in the final four weeks of the quarter that allowed us to minimize our comparable sales decline and exit the quarter with well positioned inventories.”
MacDonald added that the company decided to raise its regular quarterly dividend by 39% from 18 cents a share to 25 cents a share.
“For the full year we expect same store sales to range from flat to 2% growth and adjusted EPS to range from $3.40 to $3.60 a share,” he added. Analysts’ consensus expects earnings of $3.49 a share.