DSW Misses Profit Expectations, But Sales Beat

DSW Inc. reported Tuesday fiscal first-quarter net income that declined to $23.0 million, or 28 cents a share, from $30.0 million, or 36 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share were 32 cents, missing the FactSet consensus of 34 cents. Revenue rose to $691.1 million from $681.3 million, above the FactSet consensus of $685.3 million, as the same-store sales decline of 3.0% beat expectations of a 3.4% drop. The shoe and accessories retailer affirmed its 2017 adjusted EPS outlook of $1.45 to $1.55, compared with the FactSet consensus of $1.55. "First quarter sales were challenging, but trends improved during the quarter with comps turning positive in April," said Chief Executive Roger Rawlins. "As expected, planned clearance activity and the addition of Ebuys drove lower gross margin and operating income." The stock, which was still inactive in premarket trade, has tumbled 22% year to date, while the SPDR S&P Retail ETF has lost 6.3% and the S&P 500 has gained 6.9%.