World Footwear

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DSW performance in line with expectations

Mar 15, 2017 United States
DSW performance in line with expectations
The Ohio-based branded footwear and accessories retailer announced financial results for the last quarter of 2016, and full year. Results were in line with the company’s guidance and marked by stability
Roger Rawlins, Chief Executive Officer stated: "Our fourth quarter continued our return to year over year profitability growth, with top line results that met our guidance. Inventory management and a product-focused campaign drove significantly higher gross margin, which, coupled with better expense control, resulted in a 22% increase in adjusted earnings per share this fall season."

Fourth quarter DSW sales increased by 0.4% totaling 674.6 million US dollars, including 27.9 million US dollars of revenues from Ebuys.  Comparable sales decreased by 7% compared to last year's 0.7% increase.

Reported net income was 30.5 million US dollars, or 0.38 US dollars per diluted share, which included a net favorable adjustment of 0.18 US dollars per share related to the reduction of its contingent consideration liability, the amortization of acquired intangibles and inventory step-up costs related to Ebuys, and restructuring expenses.  Adjusted net income was 16.5 million US dollars, or 0.20 US dollars  per diluted share, an increase of 43% over last year.

As for the full year results, DSW sales increased by 3.5% reaching 2.7 billion US dollars, including 83.9 million US dollars from the company's acquisition of Ebuys.  Comparable sales decreased by 3% compared to last year's 0.8% increase.

Reported net income was 124.5 million US dollars, or 1.52 US dollars per diluted share, which included a net favorable adjustment of 0.06 US dollars per share related to the reduction of its contingent consideration liability, the amortization of acquired intangibles, transaction costs and inventory step-up costs related to Ebuys, and restructuring expenses. Adjusted net income was 120.1 million US dollars, or 1.46 US dollars per diluted share, a 5% decrease from last year.

For the fifty-three week period ending on the 3rd of February 2018, DSW expects revenue growth of 3% to 5%, with comparable sales to range from a flat to low single digit decline compared to the prior year. The company expects to open 12 to 15 net new locations. 

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