DSW Falls 13% on Fiscal Outlook

Shares of DSW DSW are seeing increased weakness during Monday's pre-market trading session after the company announced fiscal year guidance. DSW reiterated its 2012 outlook for the year ending February 2, 2013. The company continues to expect comparable sales to increase in the 3% to 5% range for the full year. In addition, DSW confirmed its previous guidance for full year earnings per diluted share of $3.25 to $3.40, excluding any impact from the RVI merger and related items, versus analysts' estimates of $3.37. This compares to 2011 adjusted earnings per diluted share of $3.00 for the year ended January 28, 2012. Based on "more normalized" gross margin performance in the second quarter and previously announced pre-opening costs associated with the acceleration in the company's store expansion, DSW expects second quarter fiscal 2012 adjusted earnings per diluted share for the period ending July 28, 2012 in the range of $0.60 to $0.64, excluding any impact from the RVI merger and related items, versus analysts' estimates of $0.76. This compares to second quarter fiscal 2011 adjusted earnings per share of $0.74 for the period ended July 30, 2011. Currently, shares of DSW are trading down about 10% at $53.04 per share.