DSW Inc. (DSW) reported earnings Tue 24 May 2016 (b/o)

** charts before earnings **

 

** charts after earnings **

 

 ** 10 days later **

 DSW misses by $0.06, misses on revs; lowers FY17 EPS, revs, comps guidance:

Reports Q1 (Apr) earnings of $0.40 per share, $0.06 worse than the Capital IQ Consensus of $0.46; revenues rose 3.9% year/year to $681.27 mln vs the $697.67 mln Capital IQ Consensus.

• Comparable sales decreased by 1.6% compared to last year's increase of 5.1%.
• Inventories were $563 million compared to $512 million at the end of the first quarter last year. Excluding Ebuys inventory of $27 million, total inventories increased by 4.7%. On a cost per square foot basis, DSW inventories increased by 0.6%.
• Co lowers guidance for FY17, sees EPS of $1.32-1.42 (Prior $1.54-1.64) vs. $1.58 Capital IQ Consensus Estimate; sees FY17 revs of $2.78-2.80 bln (+6-7% vs. prior expectations for +8-10%) vs. $2.85 bln Capital IQ Consensus Estimate; sees comps -2% to -1% (Prior +1-2%)
• "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 expandearnings as our trend improves."