DSW, Inc. (DSW) Tops Q1 EPS by 2c, Revenues Beat

DSW, Inc. (NYSE: DSW) reported Q1 EPS of $0.39, $0.02 better than the analyst estimate of $0.37. Revenue for the quarter came in at $712 million versus the consensus estimate of $681.89 million.

Roger Rawlins, Chief Executive Officer stated, "We are pleased this quarter to report our second consecutive positive comp for DSW Inc. and the fourth positive footwear comp in the DSW brand. With our solid first quarter results, we have delivered a 4% revenue increase and a 16% earnings increase over the last twelve months, marking an exciting return to growth for the DSW brand."

"Furthermore, we launched a new integrated and cross-channel loyalty program a few weeks ago, reaching an important milestone in DSW's history. We are pleased with the customer response to DSW VIP, which delivers a simpler points system and new benefits like shoe donations, free shipping and points gifting. We remain committed to innovating our customer experience with initiatives that will elevate Designer Shoe Warehouse and drive customer acquisition and loyalty for years to come," Mr. Rawlins added.

First Quarter Operating Results

• Total revenue increased by 2.9% to $712 million, including $5.6 million from residual Ebuys operations.
• Comparable sales for operations for the 13-week period ended May 5, 2018 increased 2.2% over the same 13-week period ended May 6, 2017.
• Reported gross profit, as a percentage of sales, increased by 40 bps due to the wind down of Ebuys.
• Reported operating expenses, as a percent of sales, increased by 100 bps, driven by marketing investments, Ebuys exit costs and transaction expenses with the acquisition of Town Shoes.
• Reported net income was $24.3 million, or $0.30 per diluted share, including net after-tax charges totaling $7.2 million, or $0.09 per diluted share, related to the exit of Ebuys, foreign exchange losses and transaction costs related to the acquisition of Town Shoes.
• Adjusted net income was $31.5 million, or $0.39 per diluted share, including a loss of $0.04 per share from residual Ebuys operations, which the Company exited at the end of the first quarter.

For earnings history and earnings-related data on DSW, Inc. (DSW) click here.

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