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DSW disappointed with quarter's performance

Dec 10, 2015 United States
DSW disappointed with quarter's performance
Third quarter sales decrease by 0.6% and reached 666 million US dollars. First nine months sales increased by 5.0% totaling 1.95 billion US dollars
Mike MacDonald, DSW's President and Chief Executive Officer, stated: "Our third quarter performance was disappointing. Unseasonably warm temperatures, cautious consumer spending and slower tourism contributed to weak sales trends and a difficult retail environment  (…) We remain cautious about the retail environment in the fourth quarter and are anticipating a highly promotional holiday season (…) Despite the challenging environment, we continue to make good progress on our omni-channel initiatives. During the quarter, we successfully implemented Buy Online Pick-up in Store and Buy Online Ship to Store, which provide our customers with the easy convenience of stopping by a store to pick up their on-line footwear purchases. We are encouraged that DSW customers have embraced these new capabilities with minimal marketing efforts to date."

Third quarter sales decreased by 0.6% totaling 666 million US dollars compared to last year's sales of 670 million US dollars. Comparable sales decreased by 3.9% compared to last year's increase of 2.6%. Net income generated in the period from continuing operations decreased by 20.7%, totaling 39.3 million US dollars.

For the first nine months of the year, sales increased by 5.0% to 1.95 billion US dollars compared to last year's sales of 1.86 billion US dollars. Comparable sales increased by 0.9% compared to last year's decrease of 0.1%. For the year, net income from continuing operations increased by 1.7% to 124.3 million US dollars.

DSW reiterated its earnings guidance for the year to be in the range of 1.40 US dollars to 1.50 US dollars per share, assuming approximately 4% revenue growth and flat comparable sales performance for the full year.

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