It seems that investors are losing confidence in
), after this branded footwear retailer posted a dismal
first-quarter fiscal 2014 performance. Shares of this Zacks Rank #5
(Strong Sell) company have dropped roughly 13% since the earnings
announcement on May 28, whereas year to date, the stock has fallen
Estimates for DSW have been portraying a downtrend since the
company delivered first-quarter results. It seems that analysts
have become less constructive on the stock's future performance.
This is evidenced by the Zacks Consensus Estimate that tumbled
20.1% to $1.51 for fiscal 2014 and 14.7% to $1.85 per share for
fiscal 2015 in the past 30 days.
Keeping the stock in your portfolio any longer does not seem to
be a good idea, unless you are willing to wait for it to pick up
steam. A look at the company's performance in the last concluded
quarter should remove any further doubts.
The quarterly earnings of 42 cents a share fell short of the
Zacks Consensus Estimate of 48 cents and slumped 16% from the
Owing to an intense promotional retail environment and an
erratic weather, the top line slipped 0.4% to 598.9 million, with
comparable-store sales (comps) declining 3.7% year over year. Sales
also lagged the Zacks Consensus Estimate of $636.0 million.
This branded footwear retailer envisions earnings for fiscal
2014 to lie in the band of $1.45-$1.60 per share. Additionally, the
company anticipates comps to decline by a low single-digit rate
while expecting adjusted sales to improve at the same rate.
Other better-ranked retail stocks that look promising and are
expected to continue with their upbeat performance include
Citi Trends, Inc.
) sporting a Zacks Rank #1 (Strong Buy), and
Foot Locker, Inc.
The Men's Wearhouse, Inc.
), both carrying a Zacks Rank #2 (Buy).
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