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Benzinga Breakdown: DSW's Q1 Earnings

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Benzinga Breakdown: DSW's Q1 Earnings
  • EPS $0.40 vs $0.45 Est
  • Sales $681 million vs $599 million Est, up 3.9 percent YoY
  • Full-year 2016 EPS guidance at $1.32 – $1.42 vs $1.58 est
  • Outlook was cut from earlier FY16 EPS guidance of $1.54 – $1.64
  • Comps fell -1.6 percent vs +5.1 percent a year ago
  • Inventories rose by 4.7 percent vs a year ago
  • What Does That Mean For The Company?

    DSW Inc. (NYSE: DSW) said in a statement, “We have reduced our sales and earnings guidance to reflect the current trend of our business in a challenging retail environment. This is the prudent action to take so that inventory, expenses and capital investments are aligned to maximize profitability and positioned to expand earnings as our trend improves."

    Related Link: DSW Shares Tank As Q1 Results Fail To Meet Expectations

    What Does That Mean For The Investor?

    DSW continues a trend in the shoe sector. Shoe Carnival, Inc (NASDAQ: SCVL) reported recently, missing both EPS and sales estimates, as did Genesco Inc. (NYSE: GCO).

    At time of writing, DSW shares were trading down 12.06 percent at $19.11.

     

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    Posted-In: Earnings News Movers