Why DSW Earnings Fell Short in Q4
DSW shares tumbled after it released mixed fiscal fourth-quarter financial results before the markets opened on Tuesday.
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When DSW Inc. (NYSE: DSW) released its fiscal fourth-quarter financial results before the markets opened on Tuesday, the shoe chain said that it had a net loss of $0.07 per share and $843.4 million in revenue. Consensus estimates had called for $0.04 in earnings per share (EPS) and $841.53 million in revenue. And the same period of last year reportedly had EPS of $0.38 and revenue of $719.98 million.
Overall total company comparable sales increased 5.4% year over year, which consisted of U.S. comparable retail sales of 5.3% and other ABG comparable sales of 6.8%.
In terms of its business segments, DSW reported:
- U.S. Retail revenue decreased 1.8% year over year to $655.7 million.
- Canada Retail revenue came in at $67.7 million.
- Brand Portfolio revenue was reported as $86.1 million.
- Other revenue decreased 48% to $29.0 million.
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The company did not offer any guidance in the report. However, the consensus estimates call for $0.44 in EPS and $911.63 million in revenue for the fiscal first quarter.
The board of directors also declared a quarterly cash dividend of $0.25 per share. The dividend will be paid on April 12, 2019, to shareholders of record at the close of business on April 1.
CEO Roger Rawlins commented:
Fiscal 2018 was one of the best years in our Company’s history from a comparable sales and earnings growth standpoint. We crossed the $3 billion revenue threshold for the first time and drove a +6% increase in comparable sales as we strengthened connections with our customers. We built a compelling product assortment, including the expansion of DSW Kids, a differentiated services offering with our W Nail Bar partnership, and the relaunch of our award-winning loyalty program. At the same time, we strategically positioned our Company to grow share and enhance profitability through transformative acquisitions, creating an infrastructure that positions us to be a significant force in the footwear industry for years to come.
Shares of DSW were last seen down about 13% at $22.00, in a 52-week range of $20.99 to $34.63. The consensus price target is $29.33.
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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.
