DSW Inc. intends to record a pre-tax charge of approximately $3 million
in the fourth quarter of 2008 to recognize severance and other expenses
related to a workforce reduction. The retailer reduced its home
office and field leadership workforce by 98 positions, or approximately
13%, which included 82 current positions and 16 vacant positions that
will not be filled.
DSW said the move was part of a
plan to decrease its cost structure in light of the general economic
decline and expectations for continued lower consumer spending into
2009. The company provided associates affected by the reduction with
severance packages and job placement services.
DSW also reported that sales increased 6.5% in the quarter ended November 1, to $391.4 million from
$367.4 million a year ago. Same store sales decreased 4.1% versus a
decrease of 3% last year.
Net sales for the thirty-nine week year-to-date period increased 3.9%
to $1.11 billion compared with $1.07 billion a year ago. Same
store sales decreased 5.5%
versus a decrease of 0.5% last year.
