Specialty footwear retailer DSW, Inc. (DSW), Wednesday said its first-quarter profit declined form the same quarter a year ago, hurt by a surge in expenses as well as a drop in revenues. Same store sales for the quarter declined 4.7%. The company also provided its guidance for the year 2009, indicated to come in below current Street estimates.
Columbus, Ohio-based DSW's net earnings for the first quarter decreased to $7.1 million or $0.16 per share from $10.3 million or $0.23 per share in the same quarter a year ago. Earnings per share for the first quarter, however, were in line with the Street's view.
On average, seven analysts polled by Thomson Reuters expected the company to earn $0.16 per share for the first quarter. Analysts' estimate typically excludes special items such as one-time charges or gains.
Net sales for the first quarter decreased to $385.846 million from $366.264 million in the corresponding quarter last year. Same store sales for the first quarter decreased 4.7% compared to 5.4% in the first quarter a year ago.
The street expected revenues of $382.75 million for the first quarter.
First-quarter operating expenses increased to $92.878 million from $81.041 million in the same quarter last year.
Operating income for the first quarter was $12.103 million, down from $16.006 million in the corresponding quarter a year ago. The company also incurred other than temporary impairment charges of $0.395 million, absent such charges in the same quarter last year.
Looking forward to fiscal year 2009, the company currently expects earnings in the range of $0.30 per share to $0.35 per share. Analysts currently expect earnings of $0.46 per share for the full year.
The company also said it expects a mid single digit decrease in comparable store sales for the fiscal year 2009 and also would open around ten new stores, compared to 41 new stores a year ago.
Capital expenditures are expected to decrease to nearly $35 million, compared to $81 million in the same quarter last year.
DSW closed Wednesday's trading at $12.97, down $0.03 or 0.23%, on the Nasdaq.
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