DSW Inc. Reports 2009 Fourth Quarter and Year-End Financial Results; Provides 2010 Annual Outlook

COLUMBUS, Ohio, March 16 /PRNewswire-FirstCall/ -- DSW Inc. (NYSE: DSW), a leading branded footwear specialty retailer, announced net income of $13.4 million on net sales of $402.6 million for the fourth quarter ended January 30, 2010, compared with a net loss of $7.5 million on net sales of $348.2 million for the fourth quarter ended January 31, 2009.  Same store sales increased 12.9% versus a decrease of 7.2% last year.  

(Logo:  http://www.newscom.com/cgi-bin/prnh/20050629/CLW021LOGO )

Diluted earnings per share were $0.30 for the fourth quarter of fiscal 2009 compared with a diluted loss per share of $0.17 for the same period 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.

The Company will discuss its 2010 annual outlook on its webcasted conference call to be held today.  

Webcast and Conference Call

To hear the Company's live earnings conference call, log on to www.dswinc.com today at 8:00 AM Eastern, or call 1-800-265-0241 and reference passcode 82131851.  To hear a replay of the earnings call, which will be available approximately two hours after the conference call ends, dial 1-888-286-8010, followed by passcode 41297339.  An audio replay of the conference call, as well as additional financial information, will also be available at www.dswinc.com.

About DSW Inc.

DSW Inc. is a leading branded footwear specialty retailer that offers a wide selection of brand name and designer dress, casual and athletic footwear for women and men.  As of March 16, 2010, DSW operated 306 stores in 39 states and operated an e-commerce site, www.dsw.com.  DSW also supplied footwear to 354 leased locations in the United States.  For store locations and additional information about DSW, visit www.dswinc.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Any statements in this release that are not historical facts, including the statements made in our "Outlook," are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the Company's current expectations and involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These factors include, but are not limited to: our success in opening and operating new stores on a timely and profitable basis; continuation of supply agreements and the financial condition of our leased business partners; maintaining good relationships with our vendors; our ability to anticipate and respond to fashion trends; fluctuation of our comparable store sales and quarterly financial performance; disruption of our distribution operations; failure to retain our key executives or attract qualified new personnel; our competitiveness with respect to style, price, brand availability and customer service; declining general economic conditions; risks inherent to international trade with countries that are major manufacturers of footwear; risks related to our cash and investments; the success of dsw.com; RVI's lease of an office facility; our ability to secure a replacement credit facility upon the expiration of our existing credit facility; and liquidity risks at Retail Ventures and their impact on DSW. Additional factors that could cause our actual results to differ materially from our expectations are described in the Company's latest annual or quarterly report, as filed with the SEC. All forward-looking statements speak only as of the time when made. The Company undertakes no obligation to revise the forward-looking statements included in this press release to reflect any future events or circumstances.

    
    
                                    DSW INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (In thousands)
                                  (Unaudited)
    
    
                                                 January 30,   January 31,
                                                    2010          2009
                                                    ----          ----
    ASSETS 
    Cash and equivalents                          $125,020       $54,782
    Short-term investments, net                    164,265       101,404
    Accounts receivable, net                         5,529         7,187
    Inventories                                    262,284       244,008
    Prepaid expenses and other current assets       20,762        24,790
    Deferred income taxes                           29,130        21,876
    ---------------------------------------------------------------------
    Total current assets                           606,990       454,047
    ---------------------------------------------------------------------
    
    Property and equipment, net                    206,424       233,366
    Goodwill                                        25,899        25,899
    Deferred income taxes and other assets          11,443         7,885
    ---------------------------------------------------------------------
    Total assets                                  $850,756      $721,197
    =====================================================================
    
    LIABILITIES AND SHAREHOLDERS' EQUITY                  
    Accounts payable                              $120,559       $95,211
    Accrued expenses                               104,160        63,115
    ---------------------------------------------------------------------
    Total current liabilities                      224,719       158,326
    ---------------------------------------------------------------------
                                                           
    Non-current liabilities                        101,156        97,287
    Total shareholders' equity                     524,881       465,584
    ---------------------------------------------------------------------
    Total liabilities and shareholders' equity    $850,756      $721,197
    =====================================================================

    
    
    
                                        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
                                           
    Shares used in per share 
     calculations:                        
      Basic                         44,136    44,016      44,093      43,998
      Diluted                       44,871    44,016      44,517      44,218

SOURCE DSW Inc.