Zacks Investment Research downgraded
) to a Zacks Rank #5 (Strong Sell) on Jun 28, 2014, following the
company's dismal first-quarter fiscal 2014 performance on May 28.
Since then, the shares have nosedived 34.4%.
Why the Downgrade?
DSW witnessed sharp downward estimate revisions after reporting
lower-than-expected first-quarter fiscal 2014 results. The
quarterly earnings of 42 cents a share fell short of the Zacks
Consensus Estimate of 48 cents and slumped 16% from the year-ago
Owing to an intense promotional retail environment and 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.
The Zacks Consensus Estimates has been portraying a downtrend as
analysts became less constructive on the stock's future
performance. Estimates for fiscal 2014 and 2015 dropped 20.1% and
17.1% to $1.51 and $1.80 per share, respectively.
Other Stocks to Consider
Some better-ranked retail stocks worth considering include
Citi Trends, Inc.
The Men's Wearhouse, Inc.
Foot Locker, Inc.
). While Citi Trends carries a Zacks Rank #1 (Strong Buy), both
Men's Wearhouse and Foot Locker carry a Zacks Rank #2 (Buy).
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