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DSW Inc. (DSW) Q4 Earnings Beat, Revenues Miss Estimates
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DSW Inc. continues to impress investors with better-than-expected earnings for the third consecutive quarter, when the company posted fourth-quarter fiscal 2016 results. Adjusted quarterly earnings per share came in at 20 cents surpassing the Zacks Consensus Estimate of 16 cents and also increased 43% on a year-over-year basis.
Meanwhile revenues of $674.6 million missed the Zacks Consensus Estimate of $696 million but increased marginally by 0.4% year over year. During the quarter, comparable-store sales (comps) declined 7% year over year compared with growth of 0.7% registered in the year-ago quarter.
Gross profit increased 2.3% to $168.8 million with gross margin expanding 40 basis points (bps) to 25% owing to decrease in markdowns and favorable sourcing costs. Operating profits came in at $48.9 million in comparison with $17.1 million recorded in the prior-year quarter.
Segment-wise, DSW segment’s revenues were down 3.9% to $611.9 million, while ABG segment’s revenues decreased 1.8% to $34.8 million.
DSW continues to expand store line-up. In fiscal 2017, the company is expected to open 12 to 15 new stores. In fiscal 2015 and 2016, the company launched 40 and 33 new stores, respectively. As of Mar 14, 2017, DSW’s total store count totaled to 502.
In 2016, DSW completed the acquisition of a leading eCommerce off price footwear and accessories retailer, Ebuys, Inc – a company operating in North America, Europe, Australia and Asia. This acquisition generated nearly $83.9 million in sales in fiscal 2016.
Following, the results the company’s shares inched up 0.9% on Mar 14. However, in the past one year the stock has declined 25.4%, which is almost in line with the Zacks categorized Retail-Apparel/Shoe industry.
Financials
DSW ended the year with cash and cash equivalent of $110.7 million compared with $32.5 million a year ago. Inventories came in at $500 million compared with $484.2 million at the end of fiscal 2015. The company’s total shareholders’ equity stood at $937.5 million as of Jan 28, 2017 compared with $904.9 million as of Jan 30, 2016.
DSW declared a regular quarterly dividend of 20 cents per share to be paid on Mar 31, 2017 to stockholders of record as on Mar 17, 2017.
Guidance
DSW provided fiscal 2017 guidance wherein revenues are likely to increase in the range of 3–5% and comparable store sales is expected in the range of flat to low-single digit decline. The company expects adjusted earnings per share in the band of $1.45–$1.55, including up to 10 cents impact from the discontinuation of the leased business with Gordmans. The Zacks Consensus Estimate for fiscal 2017 is currently pegged at $1.55.
This Ohio-based retailer currently carries a Zacks Rank #3 (Hold).
Central Garden & Pet has surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average beat of 120.5% and also has an impressive long-term earnings growth rate of 10%.
Kate Spade & Company shares have gained nearly 28% in the past six months.
Prestige Brands Holdings stock has gained nearly 22% in the past six months and has long-term earnings growth rate of 9.8%.
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Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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DSW Inc. (DSW) Q4 Earnings Beat, Revenues Miss Estimates
DSW Inc. continues to impress investors with better-than-expected earnings for the third consecutive quarter, when the company posted fourth-quarter fiscal 2016 results. Adjusted quarterly earnings per share came in at 20 cents surpassing the Zacks Consensus Estimate of 16 cents and also increased 43% on a year-over-year basis.
Meanwhile revenues of $674.6 million missed the Zacks Consensus Estimate of $696 million but increased marginally by 0.4% year over year. During the quarter, comparable-store sales (comps) declined 7% year over year compared with growth of 0.7% registered in the year-ago quarter.
Gross profit increased 2.3% to $168.8 million with gross margin expanding 40 basis points (bps) to 25% owing to decrease in markdowns and favorable sourcing costs. Operating profits came in at $48.9 million in comparison with $17.1 million recorded in the prior-year quarter.
DSW Inc. Price, Consensus and EPS Surprise
DSW Inc. Price, Consensus and EPS Surprise | DSW Inc. Quote
Segment-wise, DSW segment’s revenues were down 3.9% to $611.9 million, while ABG segment’s revenues decreased 1.8% to $34.8 million.
DSW continues to expand store line-up. In fiscal 2017, the company is expected to open 12 to 15 new stores. In fiscal 2015 and 2016, the company launched 40 and 33 new stores, respectively. As of Mar 14, 2017, DSW’s total store count totaled to 502.
In 2016, DSW completed the acquisition of a leading eCommerce off price footwear and accessories retailer, Ebuys, Inc – a company operating in North America, Europe, Australia and Asia. This acquisition generated nearly $83.9 million in sales in fiscal 2016.
Following, the results the company’s shares inched up 0.9% on Mar 14. However, in the past one year the stock has declined 25.4%, which is almost in line with the Zacks categorized Retail-Apparel/Shoe industry.
Financials
DSW ended the year with cash and cash equivalent of $110.7 million compared with $32.5 million a year ago. Inventories came in at $500 million compared with $484.2 million at the end of fiscal 2015. The company’s total shareholders’ equity stood at $937.5 million as of Jan 28, 2017 compared with $904.9 million as of Jan 30, 2016.
DSW declared a regular quarterly dividend of 20 cents per share to be paid on Mar 31, 2017 to stockholders of record as on Mar 17, 2017.
Guidance
DSW provided fiscal 2017 guidance wherein revenues are likely to increase in the range of 3–5% and comparable store sales is expected in the range of flat to low-single digit decline. The company expects adjusted earnings per share in the band of $1.45–$1.55, including up to 10 cents impact from the discontinuation of the leased business with Gordmans. The Zacks Consensus Estimate for fiscal 2017 is currently pegged at $1.55.
This Ohio-based retailer currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the retail space include Central Garden & Pet Company (CENT - Free Report) , Kate Spade & Company and Prestige Brands Holdings, Inc. (PBH - Free Report) . All of these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Central Garden & Pet has surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average beat of 120.5% and also has an impressive long-term earnings growth rate of 10%.
Kate Spade & Company shares have gained nearly 28% in the past six months.
Prestige Brands Holdings stock has gained nearly 22% in the past six months and has long-term earnings growth rate of 9.8%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>