DSW, Inc. (DSW): Another Band Aid - Susquehanna
- Oil steady around $50 on doubts over OPEC output cuts
- lululemon athletica (LULU) Tops Q3 EPS by 4c; Adj.-Comps Outpaced Views
- Costco Wholesale (COST) Tops Q1 EPS by 5c; Comps Up 1%, 2% Ex-Gas
- Universal Health (UHS) Disputes and Denies Conclusions in BuzzFeed Article
- Perrigo (PRGO) to Restructure BCH Omega Pharma Belgium Business; Will Terminate EuroGenerics Agreement
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Mizuho Securities Upgrades Lululemon Athletica Inc. (LULU) to Buy; Sees Upside Continuing
- Western Digital (WDC): Raising PT After Analyst Day - Baird
- Nu Skin (NUS) PT Trimmed to $55 at Jefferies Following Management Changes as Guidance Can Weigh
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change, Earnings
Related EntitiesSusquehanna International Group of Companies
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!