DSW continues year-over-year profitability, exceeds guidance in Q4 and fiscal year

By

Obi Anyanwu

Published
Mar 15, 2017

DSW released on Tuesday the financial results of its fourth quarter and full year. The company continued its year over year profitability growth in the fourth quarter with reported gross profit increasing 50 basis points.

Heading into 2017, DSW is focused on driving comp growth and building a foundation to support Ebuys and Town Shoes.

 
Fourth quarter sales increased 0.4% to $674.6 million, including $27.9 million of revenues from the acquisition of Ebuys. Comparable sales decreased 7% and adjusted net income was $16.5 million, or $0.20 per diluted share.
 
Full year sales increased 3.5% to $2.7 billion, including $83.9 million from the acquisition of Ebuys, comparable sales decreased 3% and adjusted net income was $120.1 million, or $1.46 per diluted share. The shares decreased 5% from the previous year, but it exceeded the company’s guidance.

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Roger Rawlins, Chief Executive Officer stated, "Our fourth quarter continued our return to year over year profitability growth, with top line results that met our comp guidance. Inventory management and a product-focused campaign drove significantly higher gross margin, which, coupled with better expense control, resulted in a 22% increase in adjusted earnings per share this fall season."
 
DSW expects 3% to 5% full year revenue growth, for comparable sales to range from flat to a low single digit decline, and for adjusted earnings per share to range between $1.45 and $1.55.