By RTT News, March 19, 2013, 12:28:00 PM EDT
(RTTNews.com) - Footwear retailer DSW Inc. ( DSW ), Tuesday reported a higher fourth-quarter profit, on a near 16 percent growth in sales. Same-store sales grew during the quarter, but trailed prior year level. DSW's quarterly earnings and sales missed Wall Street estimates.
DSW said its sales trend softened in the first six weeks of fiscal year 2013, with comparable sales declining 5 percent, indicating it difficult to project full year earnings and sales outlook. The company said if comparable sales for the year were to be flat, then it estimates earnings per share of $3.30 to $3.40, excluding any impact from the merger with RVI and the company's luxury initiative.
Analysts polled by Thomson Reuters currently expect the company to report earnings of $3.85 per share for fiscal year 2013. Analysts' estimates typically exclude special items.
Investors were disappointed with the quarterly results and guidance, sending DSW shares tumbling 6.7 percent in early noon trade on the New York Stock Exchange.
Columbus, Ohio-based DSW reported fourth-quarter net income of $27 million or $0.59 per share, up from $19.4 million or $0.37 per share last year.
Results for the quarter included $4.2 million in legacy charges from RVI, while the prior year included a non-cash charge of $3.7 million related to the merger with RVI.
Excluding items, adjusted earnings for the quarter were $31.4 million or $0.69 per share, compared with $23 million or $0.51 per share a year ago.
On average, 15 analysts polled by Thomson Reuters estimated earnings of $0.72 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter grew 15.7 percent to $594 million from $513.7 million last year. Analysts on consensus estimated sales of $601.88 million for the quarter.
On a same-store basis, sales were up 3.6 percent on the back of a 5.6 percent growth in the prior year.
DSW is trading at $62.51, down 6.77%, on the NYSE.
For comments and feedback: contact firstname.lastname@example.org