DSW Profit Rises, But Revenue Misses View; Shares Down

(RTTNews) - Footwear retailer DSW Inc. (DSW), Tuesday reported an increase in profit for the third quarter, driven largely by revenue growth as sales and traffic improved at the end of the quarter.

Earnings for the period matched Wall Street's expectation, however revenues fell short of estimates. Shares of DSW are currently trading down seven percent on the New York Stock Exchange.

Columbus, Ohio-based DSW's third-quarter profit rose to $54.96 million or $0.60 per share from $50.12 million or $0.55 per share last year.

Adjusted earnings improved to $0.58 per share from $0.51 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.58 per share for the quarter. Analysts' estimates typically exclude special items.

DSW said sales for the third quarter grew 6.8 percent to $632.98 million from $592.73 million a year ago. Adjusted sales rose was $624.64 million. Fifteen analysts estimated revenues of $647.29 million for the quarter.

Comparable sales, or sales from stores open for at least a year, decreased by 0.7 percent.

"We were encouraged by the improvement in traffic and sales at the end of the quarter, as the fall selling season got off to a delayed start," CEO Mike MacDonald said.

Looking forward to the full year, DSW expects adjusted earnings of $1.80 to $1.90 per share, with flat same store sales and adjusted sales growth of 4 to 5 percent. Analysts currently project annual earnings of $1.90 per share for the year.

DSW also declared dividend of $0.125 per share, to be paid on December 31 to shareholders of record on December 19.

DSW is currently trading at $43.89, down $3.33 or 7.05%.