Why DSW Is Tuesday’s Big Earnings Winner
DSW released better-than-expected fiscal third-quarter financial results before the markets opened on Tuesday.
When DSW Inc. (NYSE: DSW) released its fiscal third-quarter financial results before the markets opened on Tuesday, the company said that it had $0.70 in earnings per share (EPS) and $833 million in revenue. The consensus estimates had called for $0.51 in EPS and $794.36 million in revenue, and it the same period of last year DSW said it had EPS of $0.45 on $708.31 million in revenue.
During the most recent quarter, comparable sales increased 7.3% year over year.
The company reported its segments as follows:
- U.S. Retail segment net sales increased 10% to $721.75 million.
- Canada Retail segment net sales totaled $80.07 million.
- Other net sales decreased 44.4% at $29.85 million.
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Looking ahead to the fiscal full year, the company expects to see EPS in the range of $1.70 to $1.85 and revenues increasing 12% to 14%. Consensus estimates call for $1.72 in EPS and $3.03 billion in revenue.
On the books, DSW cash, cash equivalents and investments totaled $294.3 million at the end of the quarter, down from $300.5 million at the end of the previous fiscal year.
CEO Roger Rawlins commented:
Our investments in merchandising, marketing and talent drove continued top line momentum, with comp growth across all businesses. Additionally, the nationwide roll-out of DSW kids drove the most successful back-to-school season in our history and our recently acquired Canadian business delivered the best results in the last five years.
Shares of DSW were last seen up about 9% at $25.14, in a 52-week range of $18.01 to $34.63. The consensus analyst price target is $30.30.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
