DSW Inc. reported net sales for the quarter ended August 2, 2008 increased 2.4% to $357.2 million compared with $348.7 million for the quarter ended August 4, 2007. Same store sales decreased 6.9% for the comparable period versus an increase of 5.9% last year.
The company said second quarter merchandise margin rate increased significantly over last year due to the positioning of inventory levels with anticipated same store sales declines. Last year’s merchandise margin rate was negatively impacted by promotional activity aimed at clearing seasonal merchandise.
For the fiscal year ending January 31, 2009, the company reiterated its estimated annual comparable store sales in the negative mid-single digits and annual earnings per diluted share in the range of $0.75 to $0.85.