DSW, Inc. (DSW) Misses Q3 EPS by 8c; Guides Below Views
DSW, Inc. (NYSE: DSW) reported Q3 EPS of $0.45, $0.08 worse than the analyst estimate of $0.53. Revenue for the quarter came in at $708.3 million versus the consensus estimate of $709.63 million.
Comparable sales decreased 0.4% with a negative impact of 50 to 60 bps from hurricane disruption.
Roger Rawlins, Chief Executive Officer stated, "Much of our core business performed in-line with expectations this quarter, despite an unusually severe hurricane season which impacted comps and earnings. Additionally, cold weather related product struggled to gain the traction we had anticipated; however, tight inventory management protected our bottom line from excessive markdowns and we ended the quarter with inventories below last year. Our business model remains healthy, generating strong cash flow which allows us to invest in both organic and non-organic growth. We activated new customers, accelerated digital demand and continued to deliver concrete progress in many of our strategic priorities, such as our Power Stores, our new Lab Store and the expansion of DSW kids. Additionally, we are starting to test several new services with our new Rewards VIP program that will further differentiate the DSW brand."
"At Ebuys, we've moderated the long-term financial expectations and have reduced its carrying value on our balance sheet. However, we believe the business provides valuable expertise to manage end-of-season clearance through online marketplaces. The successful integration of this business will unlock future synergies across our brand portfolio," Mr. Rawlins concluded.
GUIDANCE:
DSW, Inc. sees FY2017 EPS of $1.40-$1.45, versus the consensus of $1.50.
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