DSW Q3 Adj. Profit Matches View, But Revenues Miss - Quick Facts

(RTTNews) - DSW Inc. (DSW), a retailer of branded footwear and accessories, said that its third-quarter of 2013 net income was $54.96 million or $0.60 per share, up from $50.12 million or $0.55 per share in the third quarter of 2012.

The latest-quarter results included net after-tax income of $1.4 million, or $0.01 per share, from its luxury test.

The prior year result included a $3.6 million award, or $0.04 per share, resulting from the 2005 credit card litigation, as well as $0.2 million in legacy charges from RVI.

Net income, adjusted for the results of luxury test and legacy charges from RVI, was $53.6 million, or $0.58 per share compared to Adjusted net income of $46.6 million, or $0.51 per share, in the same period last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.58 per share. Analysts' estimates typically exclude special items.

Reported sales increased about 6.8% to $632.98 million compared to last year's third quarter sales of $592.73 million. Total Adjusted sales for the latest-quarter were $624.64 million. Fifteen analysts estimated revenues of $647.29 million for the quarter.

For the thirteen week period ended November 2, 2013, comparable sales decreased by 0.7%. This follows an increase of 6.3% during the thirteen week period ended October 27, 2012.

DSW's Board declared a quarterly cash dividend payment of $0.125 per share. The dividend will be paid on December 31, 2013 to shareholders of record at the close of business on December 19, 2013.

For the fifty-two week fiscal year ended February 1, 2014, the company now expects Adjusted earnings per share to range from $1.80 to $1.90 per share. This assumes flat same store sales and Adjusted sales growth of 4% to 5% for the current fifty-two week period compared to the fifty-three week period ended February 2, 2013. Excluding the sales of $32 million from the fifty-third week in fiscal 2012, full year Adjusted sales growth for fiscal 2013 is expected to increase in the range of 6% to 7%. Analysts project annual earnings per share of $1.90.