World Footwear

Companies

Good momentum for DSW's revenue

Aug 29, 2019 United States
Good momentum for DSW's revenue
The Ohio-based footwear group has reported strong revenue in the second quarter and first half, with rates of 8.2% and 15.3% growth respectively reported
Roger Rawlins, Chief Executive Officer, stated: "I am proud of the work our teams have done, not only delivering a solid quarter, but also successfully integrating two significant acquisitions and leveraging the unique strength of each of our businesses to give Designer Brands greater control and flexibility in setting our own destiny in a world full of extraordinary external pressures. Each segment delivered what was needed this quarter, but our newest businesses really stood out, exceeding our expectations and moving us closer to the vision laid out at our Investor Day. (...) In Canada, the transfer of successful practices at DSW in the US to our Canadian banners fuelled continued positive momentum in this business (...) We were particularly pleased with the growth in Canada of both the loyalty programs and e-commerce sales. Similarly, Camuto Group is delivering exactly what we expected giving us differentiation and bringing added excitement to our retail segments. The Camuto Group team has unveiled the DSW Spring 2020 private label offering and based on the fashion, styles and quality shown, we believe we will be in a solid position to not only see the gross margin benefit as we convert the production of our DSW private label to Camuto Group next Spring, but also to increase brand loyalty and further drive sales within our warehouse footprint."

Second Quarter Results


Total revenue increased by 8.2%, including 102.9 million US dollars in revenue from the Brand Portfolio segment, which includes 17.7 million US dollars in intersegment revenue that is eliminated in consolidation. Comparable sales decreased by 0.6% for second quarter of fiscal 2019 compared to a 9.7% increase in the second quarter of fiscal 2018. Reported net income was 27.4 million US dollars, or 0.37 US dollars per diluted share. Adjusted net income was 35.8 million US dollars, or 0.48 US dollars per diluted share.

Six Months Results


Total revenue in the first six months of the year increased by 15.3%, including 207.5 million US dollars in revenue from the Brand Portfolio segment, which includes 28.2 million US dollars in intersegment revenue that is eliminated in consolidation. Comparable sales increased by 1.1% compared to last year's 5.8% increase. Reported net income totalled 58.6 million US dollars, or 0.77 US dollars per diluted share, including pre-tax charges totalling 12.4 million US dollars, or 0.14 US dollars per diluted share, from integration and restructuring expenses. Adjusted net income reached 69.4 million US dollars, or 0.91 US dollars per diluted share.

Image credits: Adeolu Eletu on Unsplash

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