DSW Inc. reported first quarter net sales increased 2.6% to $366.3 million from net sales of $357.0 million for the same period last year. Net income for the first quarter ending May 3, 2008, however, dropped to $10.3 million from $23.7 million last year. Same store sales decreased 5.4% for the comparable period versus a decrease of 3.6% last year. Diluted earnings per share were 23 cents for the first quarter this year compared with 54 cents last year.
2008 Outlook
For the fiscal year ending January 31, 2009, the company reiterated its previous guidance of estimated annual comparable store sales in the negative mid-single digits and annual earnings per diluted share in the range of 75 cents to 85 cents. The company maintains its plans to open at least 30 DSW stores during the year.
DSW INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three Months Three Months
Ended Ended
May 3, May 5,
2008 2007Net sales $366,264 $356,997
Cost of sales (269,217) (247,741)
Gross profit 97,047 109,256
Operating expenses (81,041) (72,038)
Operating profit 16,006 37,218
Interest income, net 723 1,719
Earnings before income taxes 16,729 38,937
Income tax provision (6,441) (15,193)
Net income $10,288 $23,744Basic and diluted earnings per share:
Basic $0.23 $0.54
Diluted $0.23 $0.54Shares used in per share calculations:
Basic 43,966 43,942
Diluted 44,149 44,361
