DSW Earnings: The Profit Streak Continues

DSW Inc. (NYSE:DSW) reported its results for the third quarter. DSW is a branded footwear specialty retailer in the United States.

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DSW Inc. Earnings Cheat Sheet

Results: Net income for DSW Inc. fell to $50.1 million ($1.10 per share) vs. $53.7 million (75 cents per share) a year earlier. This is a decline of 6.6% from the year-earlier quarter.

Revenue: Rose 11.7% to $592.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: DSW Inc. reported adjusted net income of $1.02 per share. By that measure, the company beat the mean estimate of 89 cents per share. It beat the average revenue estimate of $548.1 million.

Quoting Management: “We are pleased with our third quarter results. Comparable sales grew for the 13th consecutive quarter and earnings increased at a double digit rate,” stated Mike MacDonald, President and Chief Executive Officer. “During the quarter, we opened a record 26 new stores. We also paid a special dividend of $2.00 per share to DSW shareholders this quarter, the second such dividend in the last 13 months. Finally, we continued to make strategic investments that will enable DSW to maintain its growth trajectory.”

Key Stats:

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 4 cents in the second quarter, by 8 cents in the first quarter, and by 2 cents in the fourth quarter of the last fiscal year.

Revenue has risen for the last four quarters. Revenue increased 7.5% to $512.2 million in the second quarter. The figure rose 10.9% in the first quarter from the year earlier and climbed 9.7% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now seen net income fall in each of the last two quarters. In the second quarter, net income fell 79% from the year-earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 79 cents a share to 77 cents over the last ninety days. The average estimate for the fiscal year has fallen to $3.30 per share from $3.31 seven days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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