DSW Inc. reported net income of $16.0 million for the third quarter, up from net income of $10.9 million one year ago. Net sales for the quarter increased 9.9% to $332.2 million from $302.2 million for the comparable period last year.
Diluted earnings per share were 36 cents for the third quarter of 2006 compared with 25 cents for last year's third quarter.
Comparable store sales for the third quarter of 2006 increased 2.6% compared with the same period last year.
Nine Month Results
The fiscal 2005 nine-month results include $6.6 million of interest expense on a dividend note to the company's controlling shareholder, Retail Ventures, Inc., and $6.5 million for the accrual for losses associated with the data theft announced March 2005. After adjusting for the dividend interest, the data theft accrual and the significant increase in shares as a result of the company's initial public offering in June 2005, pro forma net income for the fiscal 2005 nine-month period was $35.0 million, or diluted earnings per share of 79 cents. The exhibit at the end of this release reconciles the non-GAAP pro forma net income and diluted earnings per share to the reported net income and diluted earnings per share for the fiscal 2005 nine-month period.
Comparable store sales for the nine months ended October 28, 2006 increased 3.0% compared with the same period last year.
Based on the performance through the first three quarters reported today, the company raised its current estimate for fiscal 2006 annual diluted earnings per share to a range of $1.35 to $1.38, up from its previous estimate of $1.24 to $1.27. Annual comparable store sales are projected to increase approximately 1-3% and the company plans to open 29 DSW stores for the year.