DSW Inc. reported sales increased 9.7 percent in the fourth quarter ended Jan. 28, 2012 to $513.7 million compared to last year's fourth quarter sales of $468.5 million.

Comparable sales for the fourth quarter 2011 increased 5.6 percent. This follows a 14.9 percent increase in comparable sales in the fourth quarter of 2010.

Fourth quarter 2011 reported net income was $19.4 million, or 37 cents per diluted share, which included a $3.7 million net charge due to the merger with RVI and related items. This compares to reported net income in the fourth quarter of 2010 of $200,000, or a penny per diluted share.

Fourth quarter 2011 net income, adjusted for the impact of the merger with RVI and related items, was $23.1 million, or 51 cents per diluted share. This compares to adjusted net income for the same period last year of $18.5 million, or 41 cents per diluted share.

Full Year Operating Results
Fiscal 2011 sales increased 11.1 percent to $2.02 billion compared to full year 2010 sales of $1.82 billion. Comparable sales for the full year 2011 increased 8.3 percent on top of last years 13.2 percent increase.

Fiscal 2011 reported net income was $174.8 million, or $4.54 per diluted share on 37.1 million weighted average shares outstanding, which included a $38.6 million net benefit due to the merger with RVI and related items. This compares to reported net income for the full year 2010 of $17.8 million, or 82 cents per diluted share on 21.6 million weighted average shares outstanding.
 
Fiscal 2011 net income, adjusted for the impact of the merger with RVI and related items, was $136.1 million, or $3.00 per diluted share on 45.3 million weighted average shares outstanding. This compares to adjusted net income for the full year 2010 of $107.6 million, or $2.40 per diluted share on 44.9 million weighted average shares outstanding.
Cash and investments totaled $430 million compared to $391 million at the end of the fourth quarter 2010.
 
Inventories were $334 million compared to $309 million at the end of the fourth quarter of 2010. Inventory cost per square foot in DSW stores increased 2 percent compared to the fourth quarter of 2010.
 
Fiscal 2012 Annual Outlook
The company is initiating its annual 2012 guidance. DSW estimates annual comparable sales to increase between 2 percent to 4 percent and expects annual diluted earnings per share in the range of $3.20 to $3.35 for fiscal 2012. The company's fiscal year 2012 retail calendar includes a fifty-third week compared to a fifty-two week year in fiscal year 2011. This guidance includes only the minimal ongoing operating expenses related to RVI; the impact of the mark-to-market adjustment on the warrants and one-time items will continue to be excluded from adjusted earnings for Fiscal 2012.

DSW INC.

Q4 AND YEAR-TO-DATE 2011 SEGMENT RESULTS

Net sales by reportable segment: 
























Three Months Ended


Year Ended




January 28, 2012

January 29, 2011

% increase

January 28, 2012

January 29, 2011

% increase



(in millions)


(in millions)















DSW

$                         475.5

$                         434.3

9.5%

$                      1,871.9

$                      1,680.9

11.4%

Leased Business Division

38.2

34.2

11.8%

152.4

141.5

7.7%

Total DSW Inc.

$                         513.7

$                         468.5

9.7%

$                      2,024.3

$                      1,822.4

11.1%

Comparable sales change by reportable segment:


















Three Months Ended

Year Ended



January 28, 2012

January 29, 2011

January 28, 2012

January 29, 2011






DSW

5.9%

15.6%

8.6%

14.0%

Leased Business Division

1.4%

7.0%

5.1%

4.6%

Total DSW Inc.

5.6%

14.9%

8.3%

13.2%