DSW sales in FY14 rise 5.4 percent, updates outlook

DSW, for the thirteen week period ended January 31, 2015 reported sales increase of 11.9 percent to 640 million dollars compared to last year's sales of 572 million dollars. For the full year, sales increased 5.4 percent to 2.5 billion dollars compared to last year's sales of 2.4 billion dollars.

Adjusted sales for the fourth quarter increased 12.1 percent and comparable sales increased 7.6 percent compared to last year's flat comparable sales. Adjusted sales increased 6.2 percent for the full year and comparable sales increased by 1.8 percent compared to last year's increase of 0.2 percent.

Elaborating on the company’s performance, Mike MacDonald, President and Chief Executive Officer stated, "We continue to invest in long term strategies that are making DSW more customer-centric and channel agnostic. We are excited to embark on the 2015 fiscal year with considerable momentum."

Reported net income for the quarter was 30.8 million dollars, or 0.34 dollars per diluted share compared to last year's 28.1 million dollars, or 0.30 dollars per diluted share. Adjusted net income was 30.9 million dollars, or 0.35 dollars per diluted share, an increase of 13 percent over last year's 28.7 million dollars, or 0.31 dollars per diluted share. For the fiscal year, reported net income was 153.3 million dollars, or 1.69 dollars per diluted share, an increase of 2.4 percent over last year's reported earnings per share of 1.65 dollars per diluted share. Adjusted net income was 153.5 million dollars, or 1.69 dollars per diluted share, a decrease of 10 percent from last year's 1.88 dollars per diluted share.

On February 17, 2015, DSW's Board of Directors increased the company's quarterly cash dividend from 0.1875 dollar per share to 0.20 dollar per share. For the fiscal year 2015, the company expects revenue growth of 7 percent to 8 percent, with comparable sales growth in the low to mid-single digit range. The company expects to open 35 new stores, including 8-10 small format stores. Full year earnings per share are expected to range between 1.80 dollars to 1.90 dollars per share, representing approximately 10 percent earnings growth at the midpoint of the range.