DSW Earnings: Here’s Why Investors are Excited Now

DSW Inc. (NYSE:DSW) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.00%.

DSW Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 46.97% to $0.97 in the quarter versus EPS of $0.66 in the year-earlier quarter.

Revenue: Rose 9.74% to $562.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: DSW Inc. reported adjusted EPS income of $0.97 per share. By that measure, the company beat the mean analyst estimate of $0.8. It beat the average revenue estimate of $559.69 million.

Quoting Management: “Second quarter sales rebounded nicely after a difficult start to the year. This sales bounce, coupled with excellent inventory management and prudent expense discipline, resulted in solid quarterly profit results. Moreover, in a volatile sales environment, DSW was able to post a solid 20% earnings growth for the first half of the fiscal year,” stated Mike MacDonald, President and Chief Executive Officer, DSW Inc.

Key Stats (on next page)…

Revenue decreased 6.53% from $601.36 million in the previous quarter. EPS decreased 3% from $1.00 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.13 to a profit $1.18. For the current year, the average estimate has moved up from a profit of $3.5 to a profit of $3.71 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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