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DSW tops Street

Footwear and accessories retailer DSW reported better-than-expected fiscal first-quarter earnings and revenue amid a flurry of strategic moves.

Net income rose to $24.3 million, or 30 cents a share, in the quarter ended May 5, from $22.8 million, or 28 cents a share, in the same period a year ago. Excluding items, adjusted earnings per share were 39 cents, above Street estimates of 37 cents.

Revenue rose 2.9% to $712.1 million, above estimates of $681.9 million. Same-store sales rose 2.2%, also more than expected.

“With our solid first quarter results, we have delivered a 4% revenue increase and a 16% earnings increase over the last twelve months, marking an exciting return to growth for the DSW brand,” said Roger Rawlins, CEO, DSW.

DSW recently launched its revamped loyalty program, DSW VIP, which features a simpler points system and more benefits, including free shipping.

Rawlins said the company is pleased with the customer response to the cross-channel program.

In other initiatives, DSW noted that, on May 10, its completed its purchase of the remaining stake in Town Shoes of Canada for C$44.7 million ($35 million U.S. dollars) and appointed William Jordan, DSW chief administrative officer, as president of the Canadian brand.

As of May 5, DSW operates 517 DSW Designer Shoe Warehouse locations in 44 states, the District of Columbia and Puerto Rico. It also supplies footwear to 289 leased locations in the United States under the Affiliated Business Group.
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