DSW Inc. reported earnings of $13.4 million, or 30 cents a share, in the fourth quarter, rebounding from a loss of $7.5 million, or 17 cents, a year earlier. Revenues rose 15.6% to $402.6 million from 348.2 million. Same store sales increased 12.9% versus a decrease of 7.2% last year.  

Annual Results

Net income was $54.7 million on net sales of $1.60 billion for the year ended January 30, 2010, compared with net income of $26.9 million on net sales of $1.46 billion for the year ended January 31, 2009.  Same store sales increased 3.2% versus a decrease of 5.9% last year.  

Diluted earnings per share were $1.23 for the year ended January 30, 2010 compared with diluted earnings per share of $0.61 for the same period last year.  

Fiscal 2010 Annual Outlook

The Company estimates 2010 annual comparable stores sales in the low-single digit range and 2010 annual diluted earnings per share of approximately $1.35 to $1.45.  The Company plans to open approximately 10 stores during the year. 

                                      DSW INC.
                     CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                      (In thousands, except per share amounts)
                                      (Unaudited) 
    
                                 Thirteen weeks ended   Fifty-two weeks ended
    -------------------------------------------------------------------------
                                  Jan. 30,  Jan. 31,    Jan. 30,    Jan. 31, 
                                    2010      2009        2010        2009
    -------------------------------------------------------------------------
    Net sales                     $402,648  $348,150  $1,602,605  $1,462,944
    Cost of sales                 (285,084) (276,267) (1,135,113) (1,083,845)
    -------------------------------------------------------------------------
    Gross profit                   117,564    71,883     467,492     379,099
    Operating expenses             (92,294)  (83,672)   (374,037)   (336,286)
    -------------------------------------------------------------------------
    Operating profit (loss)         25,270   (11,789)     93,455      42,813
    Interest (expense) income, net    (474)      777         803       2,606 
    Non-operating expense, net      (1,746)   (1,134)     (2,367)     (1,134)
    -------------------------------------------------------------------------
    Earnings (loss) before 
     income taxes                   23,050   (12,146)     91,891      44,285 
    Income tax (provision) benefit  (9,652)    4,625     (37,150)    (17,383)
    -------------------------------------------------------------------------
    Net income (loss)              $13,398   $(7,521)    $54,741     $26,902
    -------------------------------------------------------------------------
                                           
    Basic and diluted earnings 
     (loss) per share:                    
      Basic                          $0.30    $(0.17)      $1.24       $0.61
      Diluted                        $0.30    $(0.17)      $1.23       $0.61