DSW Q3 Profit Declines, Despite Higher Revenues; Results Beat Estimates

(RTTNews) - DSW Inc. (DSW) Tuesday reported a decline in third-quarter profit, despite growth in revenues. Both profit and revenues topped analysts' expectations.

Net profit declined to $49.55 million or $0.55 per share, from $54.96 million or $0.60 per share a year ago. Excluding certain items, the company recorded profit of $50.42 million or $0.56 per share.

On average, seventeen analysts polled by Thomson-Reuters estimated earnings to be $0.52. Analysts' estimates typically exclude one-time items.

DSW said it recorded a 100 bps decline in its gross margin, of which 55 bps were impacted by asset impairment.

Net sales increased to $669.87 million from $632.98 million in the previous year. Analysts projected revenues to be $661.01 million.

DSW recommended a quarterly cash dividend of $0.1875 per share, payable on December 31 to shareholders on  record December 19.

Looking ahead, the company raised the lower end of its fiscal year guidance of $1.50-$1.65 per share, for adjusted earnings and now expects $1.55-$1.65 per share. It sees revenue growth in mid-single digits.

Analysts see earnings of $1.59 and revenues of $2.45 billion for the current fiscal year ending January 31, 2015.