Wall Street Analysts Add To DSW's Tumble

• DSW Inc reported in-line earnings of $0.42 per share
• Investors fearing same-store-sales growth
• DSW lowering the amount of items on clearance in stores

Footwear and accessories retailer, DSW Inc DSW reported fiscal second quarter profits of $37.6 million on Tuesday; DSW had earnings of $0.42 per share, in-line with Wall Street analysts expectations. The shoe specialist announced revenues of $627.20 million in the period, which fell short of analysts forecasted sales of $635 in quarter two.

The fashion retailer noted it still expects full-year earnings to fall in the range of $1.80 to $1.90 per share. The company stated that both its net income alongside revenues increased compared to last year. It also specified that it stocked its stores with less clearance merchandise as a reason to why its earnings met expectations, but hurt sales.

DSW noted fewer customers were visiting its stores; sales at stores opened for at least one year had a sales growth of 1.8 percent while FactSet analysts had expected a growth nearly doubled (3.5 percent).

Sterne Agee CRT analyst, Sam Poser, added that investors are a bit concerned about DSW’s same-store-sales, but are missing the bigger picture; he views the current underlying business of DSW as “improving nicely,” and that efficiencies and improvements will continue further.

Shares sunk 11.40 percent in Tuesday’s market session and are down 27 percent year-to-date.

Here is what Wall Street had to add amid DSW’s earnings results:
Morgan Stanley: Reiterated their Underweight rating but lowered their price target from $29 to $26.75.
Canaccord Genuity: Maintained its Buy rating, but lowered its price target from $46 down to $37.
Jefferies Group: Maintained a Buy rating, lowered its price target from $44 down to $37.
Susquehanna Bank: Maintained a Positive rating for the stock, but lowered its price target from $44 down to $37.
Telsey Advisory Group: Reiterated its Outperform rating but lowered its price targets from $43 down to $38.

SUMMARY: 3 Maintained, 2 Reiterated Ratings; New price target range of $26.75-$38.00