DSW Q4 Profit Tops Estimates, Hikes Dividend; Issues FY14 Forecast - Quick Facts

(RTTNews) - DSW Inc. (DSW), a footwear and accessories retailer, Tuesday reported that its fourth-quarter net income was $28.11 million or $0.30 per share, compared to prior year's $27.15 million or $0.30 per share.

The latest results included net loss of $0.7 million, or $0.01 per share from our luxury test, compared to last year's $4.2 million, or $0.05 per share in legacy charges from RVI.

Adjusted net income was $28.7 million, or $0.31 per share, compared to $31.4 million, or $0.34 per share a year ago.

On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $0.29 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales decreased 3.7 percent to $572.27 million from last year's $594.25 million. Adjusted sales increased 3.8 percent excluding the impact of the extra week last year. Analysts estimated revenues of $588.53 million for the quarter.

For the thirteen week period ended February 1, comparable sales were flat, following an increase of 3.6 percent last year.

Looking ahead for fiscal 2014, the company expects revenue growth of 6 percent to 7 percent, with comparable sales growth in the low-single digit range and the opening of approximately 35 new stores. Earnings per share is expected to range between $1.80 to $1.95 per share, including omni-channel related expenses of $10 million or approximately $0.07 per share. Analysts expect earnings of $2.09 per share for the year. Further, the company said its Board of Directors increased the quarterly dividend by 50 percent from $0.125 to $0.1875 per share.

The company also updated its store build out potential for full size units to a range of 500 to 550 stores.