DSW ‘rebounds’ in Q1 to minimize same store sales dip

COLUMBUS, Ohio — Footwear and accessories retailer DSW reported net sales for the first quarter ended May 4 of $601 million, an increase of 7.7% from $559 million for last year's first quarter. Comparable sales for the quarter decreased by 2.4%, following an increase of 7.6% during the 13-week period ended April 28, 2012.

The company’s net income was $34.5 million, which included a net charge of $11.4 million due mostly to an inventory valuation reserve, decreased by nearly 16% from $40 million for the first quarter last year. Adjusted net income, which excludes luxury and one-time charges, for the quarter was $45.9 million, an increase of 4.5% from $44 million for the same period last year.

"DSW's first quarter performance demonstrated remarkable execution flexibility in a time of unprecedented swings in weather patterns,” said president and CEO Mike MacDonald. “Our merchandising and supply chain teams were able to adjust merchandise receipts in weather sensitive categories while continuing to support trending categories with fresh product flow. We were pleased with the strong sales rebound in the final four weeks of the quarter that allowed us to minimize our comparable sales decline and exit the quarter with well positioned inventories."

DSW operates 377 stores in 42 states, the District of Columbia and Puerto Rico, and operates an e-commerce site. DSW also supplies footwear to 348 leased locations in the United States under the Affiliated Business Group.