DSW Beats Q1 Estimates

reported better-than-expected results for the first quarter on Wednesday. The Columbus, Ohio-based company reported a quarterly profit of $47.4 million, or $0.53 per share, compared to $38.6 million, or $0.42 per share, in the year-ago quarter. Its revenue rose 9.4 percent year-over-year to $655.5 million from $599 million. However, analysts were expecting a profit of $0.47 per share on revenue of $653.41 million. The average estimate among 8 Estimize users was for earnings of $0.48 per share and revenue of $658.05 million. Its comparable sales gained 5.1 percent in the quarter. Gross profit gained to 32.5 percent from 31.4 percent. On May 22, 2015, the company's board approved a quarterly dividend of $0.20 per share. At the end of the quarter, the company had $456 million in cash, short term and long term investments, versus $548 million last year. Inventories totaled $512 million, versus $420 million during the year-ago quarter. Mike MacDonald, President and Chief Executive Officer stated, ''Our first quarter performance was a solid start to the spring season. Athletic footwear provided the strongest sales increase, but all major categories posted solid growth. Healthy regular priced sales and lower clearance inventory than last year drove a significant improvement in our gross profit rate. The West Coast port congestion delayed some receipts, but we released pre-buy merchandise to mitigate the impact on sales." DSW reiterated its full year earnings forecast of $1.80 to $1.90 per share, on revenue growth of 7 percent to 8 percent. DSW shares gained 1.52 percent to $34.77 in pre-market trading.