DSW posts first positive comp performance since 2015 in Q2

By

Obi Anyanwu

Published
Aug 22, 2017

DSW on Tuesday reported its second quarter 2017 results and its first positive comparable sales quarter since 2015.

Comparable sales for the quarter increased 0.6%, compared to a decrease of 1.2% in the previous year and a 3.0% decrease in the first quarter of fiscal 2017. Sales increased 3.3% to $680.4 million and reported gross profit increased by 50 basis points.
 
In addition, reported net income was $28.6 million, or $0.35 per diluted share, including $0.03 per diluted share related to the acquisition of Ebuys, restructuring costs, and foreign exchange loss, and adjusted net income was $30.6 million, or $0.38 per diluted share.

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"We are deepening our customer connection with unique product and meaningful experiences that will define Designer Shoe Warehouse as the trusted authority for all things footwear,” said CEO Roger Rawlins.
 
“The current retail consolidation provides significant opportunity to acquire market share, and in the next 12 months, we will unveil several exciting new initiatives that will inspire emotional loyalty with the DSW brand.”
 
Rawlins added that the company is building its infrastructure to better “mobilize” inventory for all of its brands.
 
Following the second quarter performance, DSW reported a 2.3% increase in sales to $1.4 billion and a 1.3% decrease in comparable sales. Reported net income was $51.6 million, or $0.64 per diluted share, and adjusted net income was $56.3 million, or $0.70 per diluted share.