Why Shares of DSW Inc. Are Slumping Today
Shares of DSW Inc. (NYSE: DSW) slumped on Wednesday after the footwear retailer reported its first-quarter results . Both revenue and earnings came in above analyst estimates, and the company's full-year earnings guidance was in line with expectations, but that wasn't enough to prevent the stock from heading lower. Shares of DSW were down about 7.1% as of 12:05 p.m. EDT, after being down as much as 11.9% earlier in the day.
DSW reported first-quarter revenue of $712 million, up 2.9% year over year and about $30 million above the average analyst estimate. Comparable sales rose 2.2% overall, better than a 3% decline in the prior-year period. DSW's revenue included $5.6 million from Ebuys, which the company decided to shut down earlier this year.
Non- GAAP earnings per share came in at $0.39, up from $0.32 in the prior-year period and $0.02 higher than analysts were expecting. This number includes a $0.04 loss related to Ebuys. For the full year, DSW expects non-GAAP EPS in the range of $1.52 to $1.67. That compares a consensus analyst estimate of $1.62.
It's hard to say exactly why DSW stock tumbled after a positive first-quarter report. Shares had gained about 56% over the past year prior to Wednesday's plunge, so this may be a case of expectations outpacing what the company could deliver. Investors may have been expecting more than in-line earnings guidance for the full year.
10 stocks we like better than DSW
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and DSW wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of May 8, 2018