DSW (DSW) Reports Strong Q1 Results; Where Did You Get Those Earnings From?
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DWS Inc. (NYSE: DSW) reported its first-quarter results Tuesday and following a strong beat, shares are up $7.37, or 17 percent, to $50.56.
The company posted quarterly EPS of $0.87 on revenue of $503.6 million, ahead of the Street's expectations of $0.75 in EPS and $486.54 million in revenue.
DWS said net income of $38.4 million included charges associated with the pending merger with RVI that impacted first-quarter earnings per diluted share by approximately $0.02.
Comparable sales rose 10.8%, down from its 16.2% increase during the first quarter of last year but still very strong.
Operating profit grew 29% from $49.1 million in the year-ago quarter to $63.3 million.
Cash and investments increased from $304 million to $393 million this quarter.
Inventories also rose in the quarter, from $287 million to $335 million. The company attributed the increase in inventory to anticipated sales trends, inclusive of dsw.com and new store openings, as well as the impact of opportunistic pre-buys for fall and receipt timing.
DSW opened seven new stores during the quarter and expects to open a total of 18 in 2011. The company ended the first quarter with a total of 318 stores and 7.1 million gross square feet in operation.
The company raised its 2011 EPS guidance to $2.65-$2.80, which excludes any impact from the pending merger with RVI. The Street is currently looking for FY11 EPS of $2.70.
"We have had a strong start to the year, recording double-digit gains in net sales and comparable sales and a 29% increase in operating profit as compared to the first quarter last year, continuing our stellar performance from 2010," stated Mike MacDonald, President and Chief Executive Officer, DSW Inc. "We attribute our ongoing strength to the successful execution of our key growth initiatives, and the increasing importance and attachment to the DSW brand by consumers. During the quarter, DSW achieved balanced growth across categories and genders with accessories and men's leading the way. Our new stores performed well and we were also pleased with the growth in our leased business division, which generated its highest quarterly sales in over four years."
The company posted quarterly EPS of $0.87 on revenue of $503.6 million, ahead of the Street's expectations of $0.75 in EPS and $486.54 million in revenue.
DWS said net income of $38.4 million included charges associated with the pending merger with RVI that impacted first-quarter earnings per diluted share by approximately $0.02.
Comparable sales rose 10.8%, down from its 16.2% increase during the first quarter of last year but still very strong.
Operating profit grew 29% from $49.1 million in the year-ago quarter to $63.3 million.
Cash and investments increased from $304 million to $393 million this quarter.
Inventories also rose in the quarter, from $287 million to $335 million. The company attributed the increase in inventory to anticipated sales trends, inclusive of dsw.com and new store openings, as well as the impact of opportunistic pre-buys for fall and receipt timing.
DSW opened seven new stores during the quarter and expects to open a total of 18 in 2011. The company ended the first quarter with a total of 318 stores and 7.1 million gross square feet in operation.
The company raised its 2011 EPS guidance to $2.65-$2.80, which excludes any impact from the pending merger with RVI. The Street is currently looking for FY11 EPS of $2.70.
"We have had a strong start to the year, recording double-digit gains in net sales and comparable sales and a 29% increase in operating profit as compared to the first quarter last year, continuing our stellar performance from 2010," stated Mike MacDonald, President and Chief Executive Officer, DSW Inc. "We attribute our ongoing strength to the successful execution of our key growth initiatives, and the increasing importance and attachment to the DSW brand by consumers. During the quarter, DSW achieved balanced growth across categories and genders with accessories and men's leading the way. Our new stores performed well and we were also pleased with the growth in our leased business division, which generated its highest quarterly sales in over four years."
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