DSW Inc. reported that net sales increased 12.8% to $357.0 million for the first quarter ended May 5 from net sales of $316.5 million for the year-ago period. Net income rose 35.5% to $23.7 million, or 54 cents per diluted share, compared to net income of $17.5 million, or 40 cents per diluted share in Q1 last year. Same-store sales decreased 3.6% for the comparable thirteen-week period versus an increase of 4.2% last year.
Based on the performance through the first quarter, the company said it is maintaining its current estimate for fiscal 2007 annual diluted earnings per share in the range of $1.63 to $1.68, and reducing its estimate for annual comparable store sales to the range of 0% to 3%.
DSW 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)
Thirteen Thirteen
weeks ended weeks ended
May 5, April 29,
2007 2006
Net sales $356,997 $316,487
Cost of sales (247,741) (223,200)
Gross profit 109,256 93,287
Operating expenses (72,038) (65,398)
Operating profit 37,218 27,889
Interest income, net 1,719 1,324
Earnings before income taxes 38,937 29,213
Income tax provision (15,193) (11,694)
Net income $23,744 $17,519
Basic and diluted earnings per share:
Basic $0.54 $0.40
Diluted $0.54 $0.40
