DSW is edging closer to 500-store mark

DSW Inc. says strong sales in the fourth quarter show that its growth strategy is working, and the retailer says it plans to open at least 34 new stores this year.

For the fourth quarter ended Jan. 30, the company reported a profit of $11.8 million, or 14 cents a share, down from $30.8 million, or 34 cents a share, a year earlier. Revenue rose 5% to $672 million. Same-store sales increased 0.7%.

"During the fourth quarter, we acted quickly to drive sales and gain market share, in the face of a challenging retail environment," said CEORoger Rawlins. "While these actions negatively impacted operating margin in the near term, we believe they were the right steps to expand our customer base and exit the year with a clean inventory position. In 2016, we will move decisively to improve our execution, intensify our focus on delivering value to our customers and drive additional growth by entering new categories, markets and digital channels. We recognize there is much more we need to accomplish and we are committed to returning DSW to sustainable and profitable growth while delivering strong shareholder returns."

Looking ahead, for the full year ending Jan. 28, the company expects revenue growth of 8% to 10%, with comparable sales growth in the 1% to 2% range. The company expects to open 34 stores and close two stores, which would put the company's footprint at nearly 500 stores.

This month the company completed the previously announced acquisition of Ebuys, Inc., a leading e-commerce off price footwear and accessories retailer operating in digital marketplaces in North America, Europe, Australia and Asia.