DSW Inc. claimed net income of $23.5 million on net sales of $415.1 million for the second quarter ended July 31, 2010, compared with net income of $7.6 million on net sales of $369.5 million in the prior year quarter. Same-store sales increased 12% for the comparable period versus a decrease of 2.9% last year.
Diluted earnings per share were 52 cents for the second quarter compared with diluted earnings per share of 17 cents last year.
For the 26 weeks ended July 31, the company reported net income of $53.6 million on net sales of $864.7 million, compared with net income of $14.7 million on net sales of $755.3 million for the comparable period in 2009. Same-store sales increased 14.1% for the comparable twenty-six week period versus a decrease of 3.8% last year.
Diluted earnings per share were $1.20 for the 26-week period compared with 33 cents for the same period last year.
Fiscal 2010 Annual Outlook
The company reiterated its estimate of an annual comparable store sales increase of approximately 7% to 9% and annual diluted earnings per share of approximately $1.80 to $1.95 for fiscal 2010. Fiscal 2009 annual diluted earnings per share were $1.23.
The company does recognize, however, that second half performance implied in the guidance derives from a challenging 2009 in which comparisons for both sales growth and merchandise margins may be skewed based on the economic downturn.
DSW INC. | ||||||||
Three months ended | Six months ended | |||||||
July 31, 2010 | August 1, 2009 | July 31, 2010 | August 1, 2009 | |||||
Net sales | $ 415,120 | $ 369,490 | $ 864,657 | $ 755,336 | ||||
Cost of sales | (289,402) | (271,702) | (591,574) | (552,567) | ||||
Gross profit | 125,718 | 97,788 | 273,083 | 202,769 | ||||
Operating expenses | (87,623) | (86,427) | (185,843) | (179,305) | ||||
Operating profit | 38,095 | 11,361 | 87,240 | 23,464 | ||||
Interest income, net | 137 | 578 | 922 | 832 | ||||
Non-operating income, net | 528 | 133 | ||||||
Earnings before income taxes | 38,232 | 12,467 | 88,162 | 24,429 | ||||
Income tax provision | (14,778) | (4,900) | (34,524) | (9,717) | ||||
Net income | $ 23,454 | $ 7,567 | $ 53,638 | $ 14,712 | ||||
Basic and diluted earnings per share: | ||||||||
Basic | $ 0.53 | $ 0.17 | $ 1.22 | $ 0.33 | ||||
Diluted | $ 0.52 | $ 0.17 | $ 1.20 | $ 0.33 | ||||
Shares used in per share calculations: | ||||||||
Basic | 43,988 | 44,074 | 43,948 | 44,046 | ||||
Diluted | 44,826 | 44,420 | 44,800 | 44,355 |