DSW turns in mixed performance

Footwear retailer DSW Inc. fell short on earnings in its first quarter, even as it topped sales estimates.



Net income fell to $23 million, or 28 cents per share, below analyst expectations, from $30.0 million, or 36 cents a share, in the year-ago period. The company incurred pre-tax charges of $4.1 million, related to its acquisition of Ebuys, restructuring costs and foreign exchange loss assumed in the process of pre-funding the upcoming Town Shoes acquisition.



Excluding non-recurring items, adjusted earnings per share were 32 cents. Yet, this missed the FactSet consensus of 34 cents.



Revenue increased to $691.1 million for the quarter, better than Wall Street expectations of $686.2 million, from $681.3 million last year. Same-store sales fell 3.0%, not as big a drop as had been expected.



"First quarter sales were challenging, but trends improved during the quarter with comps turning positive in April," stated Roger Rawlins, CEO, DSW.



"The investments we have made in our digital capabilities, such as our redesigned website and mobile app, drove robust growth in digital demand. We are intently focused on driving sequential top line improvements through key product and customer initiatives while balancing strategic investments with disciplined expense management."