Branded footwear and accessories retailer DSW Inc. (DSW) Tuesday posted higher profit for the fourth quarter, reflecting improved sales in the period. Adjusted earnings, however, fell short of Street expectations.
For the quarter, the firm posted net income of $27.1 million or $0.59 per share compared with $19.4 million or $0.37 for the corresponding period last year.
Adjusted for RVI legacy charges, the firm posted earnings per share of $0.69 for the quarter. Fifteen analysts, on average, polled by Thomson Reuters estimated earnings per share of $0.72 for the quarter. Analysts estimates typically exclude one-time items.
Net sales increased 15.7 percent to $594.3 million compared to last year's fourth-quarter sales of $513.7 million. The firm said the sales increase includes an incremental sales benefit of $32.3 million for the 53rd week. Analysts, however, were expecting higher sales at $601.88 million.
Looking ahead, the company said it is now managing merchandise receipts and inventories, assuming flat comparable sales performance in the first half of the year. The company further said, should comparable sales for the full year were to be flat, it sees earnings per share of $3.30 to $3.40 for fiscal 2013, excluding any impact from the merger with RVI and the company's luxury initiative. Analysts are currently expecting earnings per share of $3.85 for the full year.
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