DSW reports 5 percent rise in Q4 and FY15 sales

DSW sales increased 5 percent to 672 million dollars for the fourth quarter, whereas comparable sales increased 0.7 percent. For the full year, sales increased 5 percent to 2.6 billion dollars and comparable sales increased 0.8 percent. Gross profit decreased 300 bps due to higher promotions during the quarter and net income was 11.8 million dollars, or 0.14 dollar per diluted share. Gross profit for the full year declined 90 bps and net income was 136 million dollars, or 1.54 dollars per diluted share.

Commenting on the results, DSW Chief Executive Officer Roger Rawlins stated, "During the fourth quarter, we acted quickly to drive sales and gain market share, in the face of a challenging retail environment. While these actions negatively impacted operating margin in the near term, we believe they were the right steps to expand our customer base and exit the year with a clean inventory position. In 2016, we will move decisively to improve our execution.”

Important milestones achieved in 2015

The company opened 40 new DSW stores in the United States during the year; expanded DSW's presence in Canada with the opening of 11 new DSW locations by Town Shoes; grew digital demand by 22 percent in the full year, aided by the roll-out of Buy Online Pick-Up In Store and Buy Online Ship to Store. The company also re-platformed DSW.com with significant enhancements to search engine optimization and new personalization capabilities and returned close to 250 million dollars to shareholders, including 69.7 million dollars in dividends and 179.6 million dollars in share repurchases. DSW's Board of Directors declared a quarterly cash dividend of 0.20 dollar per share.

For the full year ending January 28, 2017, the company expects revenue growth of 8 percent to 10 percent, with comparable sales growth in the 1 percent to 2 percent range. The company expects to open 34 stores and close two stores.

On March 4, 2016, the Company completed the previously announced acquisition of Ebuys, an e-commerce off price footwear and accessories retailer operating in digital marketplaces in North America, Europe, Australia and Asia. In fiscal 2016, Ebuys is expected to contribute approximately 100 million dollars in sales.