DSW Q4 profit rises 39.7% on sales growth

DSW

Footwear and accessories retailer DSW has reported a 39.7% jump in fourth-quarter net profit driven by double-digit sales growth but admitted that comparable sales have softened in the first six weeks of its new financial year.

The Ohio-based company said net income reached $27.1 million for the 14 weeks to February 2, up from $19.4 million last year.

Net sales increased 15.7% to $594.3 million over $513.7 million the prior year, while comparable sales were up 3.6%.

“This quarter concluded a very strong year for the company in which we grew total sales by 12%, generated a two year comparable store gain of 13.8% and increased earnings per share by 12%,” said president and CEO Mike MacDonald.

“We continue to make excellent progress on our strategic initiatives, all of which are designed to enhance our shopping experience, regardless of how and where the customer chooses to shop.”

Over the full year, net income slumped 16.3% to $146.4 million against $146.4 million last year. Sales rose 11.5% to $2.26 billion, compared to $2.02 billion the prior year.

DSW said sales trends have softened in the first six weeks of its new financial year, with comparable sales slipping 5% — making it “difficult to project full-year sales and profit performance with confidence”.

Assuming comparable sales are flat, the company expects fiscal 2013 earnings per share to be between $3.30 and $3.40, compared to $3.23 in 2012.

For more fashion and apparel industry news, go to just-style.com

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