DSW Inc. reported net income fell 44.0% to $7.1 million on net sales of $385.8 million for the quarter ended May 2, 2009 from a net income of $10.3 million on net sales of $366.3 million for the quarter ended May 3, 2008. Same store sales decreased 4.7% versus a decrease of 5.4% last year.
Diluted earnings per share were 16 cents for the first quarter of fiscal 2009 compared with diluted earnings per share of 23 cents last year.
Fiscal 2009 Outlook
For the fiscal year ending Jan. 30, 2010, the company estimates annual diluted earnings per share to be approximately 30 cents to 35 cents.
The company anticipates a mid-single digit decrease in comparable store sales and expects to open approximately ten new DSW stores compared with 41 new stores last year. Capital expenditures are expected to decrease to approximately $35 million compared with $81 million last year.
DSW INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three months ended
May 2, 2009 May 3, 2008
Net sales $385,846 $366,264
Cost of sales (280,865) (269,217)
Gross profit 104,981 97,047
Operating expenses (92,878) (81,041)
Operating profit 12,103 16,006
Interest expense (183) (274)
Interest income 437 997
Interest income, net 254 723
Other-than-temporary impairment charge on
investments (395)
Earnings before income taxes 11,962 16,729
Income tax provision (4,817) (6,441)
Net income $7,145 $10,288
Basic and diluted earnings per share:
Basic $0.16 $0.23
Diluted $0.16 $0.23
Shares used in per share calculations:
Basic 44,018 43,966
Diluted 44,289 44,149
