DSW Q1 sales increase 9.4 percent

Sales at DSW in the first quarter increased 9.4 percent to 655 million dollars compared to last year's sales of 599 million dollars. Comparable sales increased by 5.1 percent against last year's decrease of 3.7 percent. Gross profit increased 110 bps, driven by 85 bps increase in merchandise margin and 25 bps of occupancy, distribution and fulfillment rate leverage.

Commenting on the results, Mike MacDonald, President and Chief Executive Officer stated, ''Our first quarter performance was a solid start to the spring season. Athletic footwear provided the strongest sales increase, but all major categories posted solid growth. Following the successful roll out of our ship-from-store program last year, we are piloting new technology to provide in-store customers access to additional styles, colours and sizes.”

Net income increased by 22.6 percent to 47.4 million dollars and earnings per share increased by 26.2 percent to 0.53 dollars per diluted share. On May 22, 2015, the company’s board declared a quarterly cash dividend payment of 0.20 dollars per share.

For the fifty-two week fiscal year ending January 30, 2016, the company reiterated its earnings outlook to range from 1.80 dollars to 1.90 dollars per share. Total revenues are expected to increase in the 7 percent to 8 percent range, driven by low to mid-single digit comparable sales growth and the opening of 35 to 40 new stores.