27 Aug DSW Q2 Sales Up 9.7%
DSW Inc. reported second quarter sales increased 9.7 percent to $562 million; comparable sales increase 4.4 percent.
Second quarter adjusted EPS climbed to 97 cents a share, an increase of 47 percent over last year. The comp gain followed an increase of 4.2 percent during the thirteen week period ended July 28, 2012.
Reported net income was $33.7 million, or 73 cents per diluted share on 45.9 million weighted average shares outstanding, which included a net after-tax loss of $1.5 million, or 3 cents per share, from its luxury test, and a net after-tax charge of $9.3 million, or 20 cents per share, from the termination of the pension plan assumed in conjunction with the RVI merger. This compares to reported net income in the second quarter of 2012 of $29.3 million, or 65 cents per diluted share, which included a non-cash charge of $0.7 million or $0.01 per share, related to legacy charges from RVI.
Net income, adjusted for the results of our luxury test and legacy charges from RVI, was $44.6 million, or 97 cents per diluted share on 45.9 million weighted average shares outstanding. This compares to Adjusted net income for the same period last year of $30.1 million, or 66 cents per diluted share, on 45.4 million weighted average shares outstanding.
“Second quarter sales rebounded nicely after a difficult start to the year. This sales bounce, coupled with excellent inventory management and prudent expense discipline, resulted in solid quarterly profit results. Moreover, in a volatile sales environment, DSW was able to post a solid 20 percent earnings growth for the first half of the fiscal year,” stated Mike MacDonald, president and CEO, DSW Inc.
MacDonald added, “These results underscore the compelling nature of the DSW formula that is based on the brand cornerstones of assortment, value and convenience. DSW’s continued progress on its strategic initiatives supports our long term growth trajectory. With that in mind, we raised our full year guidance earlier this month to $3.60 to $3.80 per share.”