World Footwear

Companies

New high in DSW annual revenue

Mar 16, 2018 United States
New high in DSW annual revenue
The US-based company reported increasing revenue in the last quarter and in the full year, despite falling earnings in the fourth quarter with the impact of the charges to write down and exit its Ebuys business
Roger Rawlins, Chief Executive Officer stated: "Our fourth quarter performance capped our first year of adjusted earnings growth since 2013. Our initiatives drove comparable sales growth and strong margin improvement at the DSW Segment this quarter. The sales inflection at our Power 35 locations, including our Lab store where we have introduced an elevated warehouse experience, prove our initiatives are gaining traction and provide us a blueprint to drive sales. We are drawing on our strong cash flow and the benefit from US Tax Reform to enhance shareholder returns by boosting our quarterly dividend and reinvesting in strategic initiatives that will advance DSW's dominant position in the marketplace in the years to come".

In the fourth quarter sales increased by 6.7% totaling 720.0 million US dollars. For the thirteen-week period, comparable sales increased by 1.3% compared to last year's 7.0% decrease.

Reported net income in the period totaled 11.7 million US dollars, or 0.15 US dollars per diluted share, which included net after-tax charges of 18.8 million US dollars, or 0.23 US dollars per diluted share, excluding costs related to Ebuys, restructuring, acquisition expenses related to Town Shoes and the impact of US Tax Reform. Adjusted net income was 30.5 million US dollars, or 0.38 US dollars per diluted share, an increase of 90%, excluding costs related to Ebuys, restructuring, acquisition expenses related to Town Shoes and the impact of the US Tax Reform.

Sales for the full year increased by 3.3% to 2.8 billion US dollars, including 87.0 million US dollars from Ebuys. For the fifty-two week period, comparable sales decreased by 0.4% compared to last year's 3.0% decrease.

Reported net income was 67.3 million US dollars, or 0.83 US dollars per diluted share, which included net after-tax charges of 55.5 million US dollars, or 0.69 US dollars per diluted share, excluding costs related to Ebuys, restructuring costs, acquisition expenses related to Town Shoes and the impact of US. Tax Reform. Adjusted net income in the period totaled 122.8 million US dollars, or 1.52 US dollars per diluted share, a 4.1% increase to last year.

Following a comprehensive evaluation of strategic alternatives for Ebuys, DSW made the decision to exit the business. Consequently, the company revalued its remaining assets including inventory, fixed and intangible assets at liquidation value and reduced its contingent consideration liability. DSW expects to complete the liquidation process in early 2018 and may incur additional one-time exit charges, which will be excluded from adjusted results.

Related Events

  • Oct
    14
    Oct 14-Oct 16, 2019 | Los Angeles, United States

    Label Array

  • Oct
    15
    Oct 15-Oct 19, 2019 | Atlanta, United States

    Atlanta Apparel

  • Oct
    20
    Oct 20-Oct 23, 2019 | Marlboro, United States

    NEAC Marlboro

  • Oct
    23
    Oct 23-Oct 26, 2019 | Dallas, United States

    Dallas Apparel & Accessories Market

Related Organizations

  • WSTA - World Shoe Travelers Association

    WSTA - World Shoe Travelers Association

    United States
  • The Museum at FIT

    The Museum at FIT

    United States
  • Fashion Institute of Technology

    Fashion Institute of Technology

    United States
  • FFANY - Fashion Footwear Association of New York

    FFANY - Fashion Footwear Association of New York

    United States