Clearance helps DSW beat Street with profits; 35-40 new stores planned

Columbus, Ohio – DSW Inc. beat Wall Street expectations with first quarter profits that were aided by a reduction in clearance-priced merchandise. Net income in the first quarter of fiscal 2015 rose 22% to $47.37 million, from $38.64 million a year earlier.



Net sales grew 9% to $655.49 from $598.95 million. Same-store sales improved 5.1%.



DSW plans to open 35-40 new stores in fiscal 2015. Other plans for the year include piloting new technology to provide in-store customers access to additional styles, colors and sizes. These tools, coupled with enhanced customer engagement, will deliver an endless aisle experience.



''Our first quarter performance was a solid start to the spring season,” said Mike MacDonald, president and CEO. “Athletic footwear provided the strongest sales increase, but all major categories posted solid growth. Healthy regular priced sales and lower clearance inventory than last year drove a significant improvement in our gross profit rate. The West Coast port congestion delayed some receipts, but we released pre-buy merchandise to mitigate the impact on sales."



During fiscal 2015, total revenues are expected to increase in the 7%-8% range, driven by low-to-mid-single digit same-store sales growth.