DSW Shoe Warehouse was again the shining star for parent Retail Ventures, Inc. as third quarter net sales at the rapidly-growing family footwear chain increased 18.6% to $255.8 million from $215.8 million in Q3 last year, due primarily to a 30-store increase in store count. Comp store sales inched up 0.7% for Q3.
Athletics was the key driver here, increasing 12.9% on a comp basis versus last year. The Mens business declined 2.1% and Womens slipped 1.2% for the quarter. The Boots business was expected to be down versus strong sales last year, but management told analysts that the decline in Q3 was not as bad as anticipated.
Operating profit increased 75.2% to $16.4 as gross margins improved 270 basis points to 43.5% of sales versus 40.8% of sales in the year-ago period.
RVI management said that the DSW division will be looking for a top operations exec and a senior financial exec to assist Debbie Ferree as she focuses primarily on the merchant role in her new position as president of DSW Show Warehouse.
Total RVI revenues rose 2.8% for the period to $699.7 million, but the company posted a $900,000 loss, a swing of $1.8 million from a $900,000 profit in Q3 last year. Comps decreased 4.1%, due to a 7.8% comp decrease at Value City Stores and a 1.2% sale-store sales gain at Filenes Basement.
