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Ebuys acquisition boosts DSW's Q1 sales by 1.4 percent

By Prachi Singh

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Report

First quarter sales at DSW increased 1.4 percent to 691.1 million dollars, including 22.3 million dollars of revenues from Ebuys. Comparable sales decreased 3.0 percent compared to 1.6 percent decrease last year. Reiterating its full year outlook, DSW said it continues to expect adjusted earnings in the range of 1.45 dollars to 1.55 dollars per diluted share.

"First quarter sales were challenging, but trends improved during the quarter with comps turning positive in April. As expected, planned clearance activity and the addition of Ebuys drove lower gross margin and operating income. The investments we have made in our digital capabilities, such as our redesigned website and mobile app, drove robust growth in digital demand,” commented Roger Rawlins, DSW’s CEO in a press release.

First quarter highlights

Reported gross profit for the quarter decreased by 180 bps, which the company said was driven by planned clearance activity and the addition of Ebuys, offset by disciplined markdown management and favorable sourcing costs.

Reported net income was 23 million dollars or 0.28 dollar per diluted share, including pre-tax charges of 4.1 million dollars or 0.04 dollar per share, related to the acquisition of Ebuys, restructuring costs and foreign exchange loss assumed in the process of pre-funding the upcoming Town Shoes acquisition. Adjusted net income was 25.7 million dollars or 0.32 dollar per diluted share.

Picture:DSW website

DSW