DSW Tops Profit Estimates, But Sales Fall Short

Discount shoe retailer DSW Inc. said Tuesday it had net income of $30.5 million, or 38 cents a share, in its fiscal fourth quarter to Jan. 28, up from $11.7 million, or 14 cents a share, in the year-earlier period. Adjusted per-share earnings came to 20 cents, ahead of the FactSet consensus of 16 cents. Same-store sales fell 7%, while net sales rose to $674.6 million from $672.0 million. The FactSet consensus was for for same-store sales to fall 5.2% and for net sales of $692 million. "After making fundamental changes to our core business last year, we are laser focused on driving comp growth through our merchandise and allocation initiatives and the elevation of our customer's digital experience," Chief Executive Roger Rawlins said in a statement. The company is investing in Ebuys and Town Shoes and aiming to harness synergies across its retail brands, he said. DSW is now expecting fiscal 2017 EPS to range from $1.45 to $1.55, compared with a FactSet consensus of $1.53. Shares were indicating slightly higher premarket, but are down 28% in the last 12 months, while the S&P 500 has gained 17.5%.