DSW (DSW) reported earnings on Tue 11 Dec 2018 (b/o)

** charts before earnings **

 

** charts after earnings **

 

DSW beats by $0.19, beats on revs; Q3 comps +7.3%; raises FY19 EPS, revenue, and comp guidance

• Reports Q3 (Oct) earnings of $0.70 per share, excluding non-recurring items, $0.19 better than the S&P Capital IQ Consensus of $0.51; revenues rose 17.2% year/year to $833 mln vs the $791.23 mln S&P Capital IQ Consensus. Comparable sales increased 7.3% for the same 13-week periods ended November 3, 2018 and November 4, 2017. Reported gross profit, as a percent of sales, increased by 220 bps, driven by favorable merchandise margin and business mix.
• Co issues raised guidance for FY19, sees EPS of $1.70-1.85 from $1.60-1.75, excluding non-recurring items, vs. $1.72 S&P Capital IQ Consensus; sees FY19 revs of +12-14% from +6-9% to ~$3.13-3.19 bln vs. $3.04 bln S&P Capital IQ Consensus. Co raises comp guidance for FY18 to mid to high single digits from low to mid single digits prior guidance. Guidance excludes year-to-date losses of $0.07 per share from the wind down of operations for business exits. Camuto Group acquisition is expected to contribute pro forma double-digit EPS accretion by 2020.