DSW Inc. (NYSE: DSW) a leading branded footwear and accessories retailer, appeared to be shambling in the first fiscal quarter of 2017, coming out with financial results that didn’t compare so favorably with the 13-week period ended April 30, 2016.
The Columbus, Ohio-based retailer reported Tuesday that sales increased 1.4% to $691.1 million, including $22.3 million of revenues from Ebuys. Comparable sales decreased 3.0% compared to last year's 1.6% decrease.
News releases also pointed out, however, that gross profit decreased by 180 basis points, driven by planned clearance activity and the addition of Ebuys, offset by disciplined markdown management and favorable sourcing costs.
Those reports also pegged net income at $23.0 million, or $0.28 per diluted share, including pre-tax charges totaling $4.1 million, or $0.04 per share, related to the acquisition of Ebuys, restructuring costs and foreign exchange loss assumed in the process of pre-funding the upcoming Town Shoes acquisition.
Adjusted net income for DSW was $25.7 million, or $0.32 per diluted share.
DSW affirmed its 2017 adjusted Earning Per Share outlook of $1.45 to $1.55, compared with the analysts consensus of $1.55.
To quote CEO Roger Rawlins, "first quarter sales were challenging, but trends improved during the quarter with comps turning positive in April. As expected, planned clearance activity and the addition of Ebuys drove lower gross margin and operating income."
The stock has tumbled 22% year to date, and opened Tuesday trading at $16.64, down $1.01, or 5.5%, from Monday’s close.
