UPDATE: Sterne Agee CRT Downgrades DSW Inc. (DSW) to Neutral

Sterne Agee CRT downgraded DSW Inc. (NYSE: DSW) from Buy to Neutral and removed its price target. Analyst Sam Poser said pointed out organizational changes and uncertain trends.

The analyst explained, ": The departure of EVP/Chief Supply Chain Officer, Harris Mustafa is, in our view, a major loss to DSW. We understand that he will be a consultant to DSW, but we do not know more than that. His departure was personal in nature. Mr. Mustafa reported to Ms. Ferree, but she did not directly run the supply chain on a day-to-day basis. We have met with Mr. Mustafa on a few occasions and were very impressed. We have little doubt that Mr. Mustafa's team is talented; however, we are very concerned the loss Mr. Mustafa's insights and leadership will cause a hiccup in the progress made, and also put an extra workload on to key senior managers."

Poser added, "Our checks, and commentary from companies point to lackluster sales and high inventory levels in the channel: Based on our checks, sales and traffic in the last 3 weeks slowed. In addition, large retailers are left with too much inventory, especially in private label and lesser sought after brands. Sketchers,Wolverine World Wide, and VF Corp. are the latest public companies to speak to this phenomenon. As such, orders are being delayed or cancelled, and promotional levels are increasing."

For an analyst ratings summary and ratings history on DSW Inc. click here. For more ratings news on DSW Inc. click here.

Shares of DSW Inc. closed at $24.43 yesterday.

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