"Our investments in merchandising, marketing and talent drove continued top line momentum, with comp growth across all businesses. Additionally, the nationwide roll-out of DSW kids drove the most successful back-to-school season in our history and our recently acquired Canadian business delivered the best results in the last five years", commented Chief Executive Officer, Roger Rawlins.

"Our acquisition of Camuto Group brings powerful design and sourcing capabilities in-house and new streams of revenue from one of the leading lifestyle brands in fashion footwear. Integration efforts are on track, with supply chain and working capital improvements paving the way for a return to profitability. We have transformed our company to one of North America's largest footwear operators, with vertical product development expertise combined with a vast distribution network. This will accelerate market share growth by creating value for more customers and increasing our competitive differentiation", Mr. Rawlins added.

Third Quarter Results

Total revenue increased by 17.2% totalling 833 million US dollars, including 80.1 million US dollars from the consolidation of the Canadian retail business. Comparable sales increased by 7.3% when compared with the similar 13-week periods in 2017. Comparable sales exclude results from the Canada Retail segment  Reported net income reached 39.3 million US dollars, or 0.48 US dollars per diluted share, including pre-tax charges totaling 22.9 million US dollars, or 0.22 US dollars per diluted share, from transaction costs related to acquisition activity, and lease exit costs partially offset by a favorable adjustment in goodwill impairment resulting from a change in purchase accounting. Adjusted net income was 57.9 million US dollars, or 0.70 US dollars per diluted share, a 56% increase from the previous year.

Nine Months Operating Results

Total revenue increased by 12.2% totalling 2.3 billion US dollars, including 152.6 million US dollars from the consolidation of the Canadian retail business. Comparable sales increased by .3% compared to last year's 1.0% decrease. Reported net income was 25.3 million US dollars, or 0.31 US dollars per diluted share, including pre-tax charges totaling 121.3 million US dollars, or 1.41 US dollars per diluted share, related to acquisition activity, impairment charges, lease exit costs, restructuring expenses and foreign exchange loss. Adjusted net income totalled 140.3 million US dollars, or 1.72 US dollars per diluted share, a 51% increase to last year.

Fiscal 2018 Annual Outlook

DSW raised its full year outlook for Adjusted EPS in the range of 1.70 US dollars to 1.85 US dollars per diluted share, compared to its previous range of 1.60 US dollars to 1.75 US dollars per diluted share. Guidance does not include charges related to exit costs, restructuring or acquisition-related expenses or the impact of exited businesses. The company noted the impact of the Camuto Group acquisition reflects the seasonality of the business and the timing of the integration process, which is expected to yield benefits starting in 2019.