DSW returns to same-store sales growth of 0.6 percent in Q2

DSW’s sales increased 3.3 percent to 680.4 million dollars for the second quarter and comparable sales increased 0.6 percent compared to last year's 1.2 percent decrease. For the first six months of this fiscal, sales increased 2.3 percent to 1.4 billion dollars, while comparable sales decreased 1.3 percent compared to last year's 1.4 percent decrease.

Commenting on the company’s performance, Roger Rawlins, DSW’s Chief Executive said in a media statement, "We were pleased to report our first positive comp quarter since 2015. This resulted in a healthy increase in regular priced sales and improvements across all selling metrics.”

Second quarter and H1 financial highlights

Reported gross profit for the quarter, DSW said, increased by 50 bps, driven by lower markdowns and favourable sourcing, partially offset by inventory reserves and distribution costs related to the ongoing integration of Ebuys.

Reported gross profit for the first half decreased by 60 bps, driven by incremental clearance activity and inventory reserves and distribution costs related to the ongoing integration of Ebuys.

Reported net income for the second quarter was 28.6 million dollars or 0.35 dollar per diluted share, including pre-tax charges totalling 3.2 million dollars or 0.03 dollar per diluted share, related to the acquisition of Ebuys, restructuring costs and foreign exchange loss. Adjusted net income was 30.6 million dollars or 0.38 dollar per diluted share.

Reported first half net income was 51.6 million dollars or 0.64 dollar per diluted share, including pre-tax charges totalling 7.3 million dollars or 0.06 dollar per diluted share, related to the acquisition of Ebuys, restructuring costs and foreign exchange loss. Adjusted net income was 56.3 million dollars or 0.70 dollar per diluted share.

Announces dividend, reiterates earnings outlook

DSW's board of directors declared a quarterly cash dividend of 0.20 dollar per share to be paid on September 29, 2017.

The company reiterated its full year outlook for adjusted earnings in the range of 1.45 dollars to 1.55 dollars per diluted share.

Picture:Facebook/DSW