DSW, Inc. (DSW): Another Band Aid - Susquehanna
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Susquehanna analyst, Sam Posner, reiterated his Negative rating on shares of DSW Inc. (NYSE: DSW) after DSW's 3Q16 EPS results came in better than expected. However, the analyst believes this means that DSW has yet to take needed markdowns, which will continue to result in poor top line performance.
Fewer markdowns and expense management are masking inventory and SSS problems. Elevated inventories are protecting margins, but are resulting in significant SSS declines. It is only a matter of time before DSW will need to take the necessary margin hit to have a chance at resuming SSS growth. All the while, DSW is losing its designer shoe identity and forfeiting share.
No change to the price target of $19.
Shares of DSW Inc. closed at $24.90 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change, Earnings
Related EntitiesSusquehanna International Group of Companies
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