DSW Inc. Reports Fourth Quarter and Fiscal Year 2014 Financial Results

COLUMBUS, Ohio, March 17, 2015 /PRNewswire/ -- DSW Inc. (NYSE: DSW), a leading branded footwear and accessories retailer, announced financial results for the thirteen week period ended January 31, 2015, which compare to the thirteen week period ended February 1, 2014.

Mike MacDonald, President and Chief Executive Officer stated, "We were gratified to report strong sales and profit growth in the fourth quarter. Our decisive actions earlier in the year in the areas of leadership, value, and marketing produced strong results. These actions produced the strongest comp performance in almost three years, with traffic gains in both store and digital channels. Further, we continue to invest in long term strategies that are making DSW more customer-centric and channel agnostic. We are excited to embark on the 2015 fiscal year with considerable momentum."

Fourth Quarter Operating Results

• Reported sales increased 11.9% to $640 million compared to last year's sales of $572 million.
• Adjusted sales increased 12.1% to $640 million compared to last year's sales of $571 million, excluding sales from the Company's luxury test.
• Comparable sales increased 7.6% compared to last year's flat comparable sales. 
• Reported net income was $30.8 million, or $0.34 per diluted share, which included an expense related to RVI of $0.1 million. This compares to last year's $28.1 million, or $0.30 per diluted share, which included $0.6 million of net charges related to RVI and the Company's luxury test.
• Adjusted net income was $30.9 million, or $0.35 per diluted share, an increase of 13% over last year's $28.7 million, or $0.31 per diluted share.

Full Year Operating Results

• Reported sales increased 5.4% to $2.5 billion compared to last year's sales of $2.4 billion. Last year's sales included $18 million from the Company's luxury test. 
• Adjusted sales increased 6.2% to $2.5 billion compared to last year's sales of $2.4 billion.
• Comparable sales increased by 1.8% compared to last year's increase of 0.2%.
• Reported net income was $153.3 million, or $1.69 per diluted share, an increase of 2.4% over last year's Reported earnings per share of $1.65 per diluted share. Last year's Reported earnings per share includes $0.23 per share in charges related to RVI and the Company's luxury test.
• Adjusted net income was $153.5 million, or $1.69 per diluted share, a decrease of 10% from last year's $1.88 per diluted share.

Fourth Quarter Balance Sheet Highlights

• Cash, short term and long term investments totaled $447 million compared to $579 million in the fourth quarter last year.
• On a cost per square foot basis, DSW inventories increased by 6.5% at the end of quarter. Excluding pre-buys, inventory cost per square foot increased by 2.8%.

Regular Dividend

On February 17, 2015, DSW's Board of Directors increased the Company's quarterly cash dividend from $0.1875 per share to $0.20 per share. The dividend will be paid on March 31, 2015 to shareholders of record at the close of business on March 20, 2015.

Fiscal 2015 Annual Outlook

For the full year, the Company expects revenue growth of 7% to 8%, with comparable sales growth in the low to mid-single digit range. The Company expects to open 35 new stores, including 8-10 small format stores. Full year earnings per share is expected to range between $1.80 to $1.90 per share, representing approximately 10% earnings growth at the midpoint of the range. This guidance assumes a tax rate of 39% and 90 million shares outstanding.

Webcast and Conference Call

To hear the Company's live earnings conference call, log on to http://www.dswinc.com/ today at 8:30 AM Eastern, or call 1-888-317-6003 in the U.S. or 1-412-317-6061 outside the U.S (passcode: 2716231) approximately ten minutes prior to the start of the call. A telephone replay of this call will be available until 9:00 a.m. Eastern Time on March 31, 2015 and can be accessed by dialing 1-877-344-7529 in the U.S. or 1-412-317-0088 outside the U.S. and (passcode: 10060990). An audio replay of the conference call, as well as additional financial information, will also be available at http://www.dswinc.com/.

About DSW Inc.

DSW Inc. is a leading branded footwear and accessories retailer that offers a wide selection of brand name and designer dress, casual and athletic footwear and accessories for women, men and kids. As of March 17, 2015, DSW operates 433 stores in 42 states, the District of Columbia and Puerto Rico, and operates an e-commerce site, http://www.dsw.com, and a mobile website, http://m.dsw.com. DSW also supplies footwear to 370 leased locations in the United States and operates four Yellow Box stores under the Affiliated Business Group. For store locations and additional information about DSW, visit http://www.dswinc.com. Follow DSW on Twitter at http://twitter.com/DSWShoeLovers and Facebook at http://www.facebook.com/DSW.

 

 

 

 

 

 

 

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Any statements in this release that are not historical facts, including the statements made in our "Fiscal 2015 Annual Outlook," are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the Company's current expectations and involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These factors include, but are not limited to: our success in executing our omni-channel strategy; our success in opening and operating new stores on a timely and profitable basis; maintaining strong relationships with our vendors; our ability to anticipate and respond to fashion trends; disruption of our distribution and/or fulfillment operations; continuation of supply agreements and the financial condition of our affiliated business partners; fluctuation of our comparable sales and quarterly financial performance; risks related to our information systems and data; failure to retain our key executives or attract qualified new personnel; our competitiveness with respect to style, price, brand availability and customer service; our reliance on our DSW Rewards program and marketing to drive traffic, sales and customer loyalty; uncertain general economic conditions; our reliance on foreign sources for merchandise and risks inherent to international trade; risks related to our handling of sensitive and confidential data; risks related to leases of our properties; risks related to the realization of benefits related to our equity interest in Town Shoes Limited, a leading branded shoe retailer in Canada; foreign currency exchange risk; and risks related to our cash and investments. Additional factors that could cause our actual results to differ materially from our expectations are described in the Company's latest annual or quarterly report, as filed with the SEC. All forward-looking statements speak only as of the time when made. The Company undertakes no obligation to revise the forward-looking statements included in this press release to reflect any future events or circumstances.

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Measures

The unaudited reconciliation of adjusted results should not be construed as an alternative to the reported results determined in accordance with generally accepted accounting principles ("GAAP"). These financial measures are not based on any standardized methodology and are not necessarily comparable to similar measures presented by other companies. The company believes that this non-GAAP information is useful as an additional means for investors to evaluate the company's operating performance, when reviewed in conjunction with the company's GAAP statements. These amounts are not determined in accordance with GAAP and therefore, should not be used exclusively in evaluating the company's business and operations.

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SOURCE DSW Inc.