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Wall Street Analysts Add To DSW's Tumble

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

Footwear and accessories retailer DSW Inc (NYSE: DSW) reported fiscal second-quarter profits of $37.6 million on Tuesday. Earnings of $0.42 per share were 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 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 11.4 percent in Tuesday’s session and are down 27 percent year-to-date. However, shares were up more than 3 percent on Wednesday morning.

Here is what Wall Street had to add amid DSW’s earnings results:

  • Morgan Stanley: Reiterated an Underweight rating, lowered price target from $29 to $26.75.
  • Canaccord Genuity: Maintained a Buy, lowered price target from $46 down to $37.
  • Jefferies Group: Maintained a Buy, lowered price target from $44 down to $37.
  • Susquehanna Bank: Maintained a Positive rating, lowered price target from $44 down to $37.
  • Telsey Advisory Group: Reiterated an Outperform, lowered its price target from $43 down to $38.

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

Latest Ratings for DSW

Dec 2018B. Riley FBRMaintainsNeutralNeutral
Dec 2018Canaccord GenuityMaintainsHoldHold
Dec 2018B. Riley FBRMaintainsNeutralNeutral

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View the Latest Analyst Ratings


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