DSW posts surprise 4Q loss, will rename co. Designer Brands
Shoe chain DSW Inc. on Tuesday reported a surprise loss for its fiscal fourth quarter as it digested costs from acquisitions.
DSW, based in Columbus, Ohio, also offered a disappointing earnings forecast for the current year, which drove shares down more than 13 percent.
The results come as the chain said it plans to change its corporate name to Designer Brands Inc. as it expands its offerings. It's slated to change its ticker symbol to DBI on April 2.
Last year, the company purchased Camuto Group, a shoe manufacturer that owns licensing rights for the Jessica Simpson footwear business and footwear and handbag licenses for Lucky Brand.
DSW also has been adding services like nail salons, and it plans to build exclusive brands and products.
The moves come as Amazon has been increasing its market share in shoes, while key rival Payless ShoeSource is closing its 2,500 stores in North America.
DSW posted a fiscal fourth-quarter loss of $45.7 million, after reporting a profit in the same period a year earlier.
On a per-share basis, the company said it had a loss of 58 cents. Losses, adjusted for one-time gains and costs, were 7 cents per share.
The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 3 cents per share.
The footwear and accessories retailer with nearly 1,000 locations posted revenue of $843.4 million in the period, which also fell short of Street forecasts. Four analysts surveyed by Zacks expected $850.7 million.
For the year, the company swung to an annual loss of $20.5 million, or 26 cents per share. Revenue was reported as $3.18 billion.
Looking ahead, for the current fiscal year DSW expects earnings per share in the range of $1.80 to $1.90 per share. Analysts expected $1.94 per share, according to FactSet.
The company said it expects earnings share to be from $2.65 per share to $2.75 per share for fiscal 2021. Analysts forecast $2.12 per share, according to FactSet.
DSW's share fell $3.40 to $21.96 in afternoon trading.
Elements of this story were generated by Automated Insights using data from Zacks Investment Research. Access a Zacks stock report on DSW at https://www.zacks.com/ap/DSW