DSW Inc. Announces Fourth Quarter and Year-End 2010 Financial Results; Provides 2011 Annual Outlook

- Fourth quarter net income increased 38% on 14.9% comps.

- Annual net income increased 97% on 13.2% comps.

- 2011 annual diluted earnings per share guidance of $2.60 to $2.75 on annual comps of 3% to 5%, excluding any impact from the proposed merger with Retail Ventures, Inc.

Mar 15, 2011, 07:00 ET from DSW Inc.

COLUMBUS, Ohio, March 15, 2011 /PRNewswire/ -- DSW Inc. (NYSE: DSW), a leading branded footwear specialty retailer, announced net income of $18.5 million on net sales of $468.5 million for the fourth quarter ended January 29, 2011, compared with net income of $13.4 million on net sales of $402.6 million for the quarter ended January 30, 2010.  Same store sales increased 14.9% for the comparable period versus an increase of 12.9% last year.  

(Logo:  http://photos.prnewswire.com/prnh/20100325/DSWLOGO-a )

Diluted earnings per share were $0.41 for the fourth quarter of fiscal 2010 compared with diluted earnings per share of $0.30 last year.

Annual Results

Net income was $107.6 million on net sales of $1.82 billion for the year ended January 29, 2011, compared with net income of $54.7 million on net sales of $1.60 billion for the year ended January 30, 2010.  Same store sales increased 13.2% for the comparable period versus an increase of 3.2% last year.  

Diluted earnings per share were $2.40 for the year, compared with $1.23 for the same period last year, and within the updated guidance range of $2.38 to $2.42 provided on February 8, 2011.

Fiscal 2011 Annual Outlook

The Company estimates an annual comparable store sales increase of 3% to 5% and annual diluted earnings per share of $2.60 to $2.75 for fiscal 2011, excluding any impact from the proposed merger with Retail Ventures, Inc.

The Company will discuss its 2011 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 800-299-7089 and reference passcode 56630520.  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 70000087.  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 well as accessories.  As of March 15, 2011, DSW operated 312 stores in 39 states and operated an e-commerce site, www.dsw.com.  DSW also supplied footwear to 351 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  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; uncertain general economic conditions; risks inherent to international trade with countries that are major manufacturers of footwear; risks related to our cash and investments; RVI's lease of an office facility; and risks related to the proposed merger of DSW and RVI. 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 29,

January 30,

2011

2010

ASSETS

Cash and equivalents

$   93,617

$   125,020

Short-term investments

241,557

164,265

Accounts receivable, net

12,514

5,529

Inventories

309,013

262,284

Prepaid expenses and other current assets

29,945

20,762

Deferred income taxes

30,535

29,130

Total current assets

717,181

606,990

Property and equipment, net

210,391

206,424

Long-term investments

49,987

1,151

Goodwill

25,899

25,899

Deferred income taxes and other assets

5,439

10,292

Total assets

$   1,008,897

$   850,756

LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts payable

$   149,722

$   120,559

Accrued expenses

103,994

104,160

Total current liabilities

253,716

224,719

Deferred income taxes and other non-current liabilities

114,417

101,156

Total shareholders' equity

640,764

524,881

Total liabilities and shareholders' equity

$   1,008,897

$   850,756

DSW INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)

(Unaudited)

Thirteen weeks ended

Fifty-two weeks ended

January 29, 2011

January 30, 2010

January 29, 2011

January 30, 2010

Net sales

$           468,450

$         402,648

$        1,822,376

$     1,602,605

Cost of sales

(335,072)

(285,084)

(1,256,695)

(1,135,113)

Gross profit

133,378

117,564

565,681

467,492

Operating expenses

(102,107)

(92,294)

(392,098)

(374,037)

Operating profit

31,271

25,270

173,583

93,455

Interest income (expense), net

229

(474)

2,196

803

Non-operating (expense) income, net

(1,746)

1,500

(2,367)

Earnings before income taxes

31,500

23,050

177,279

91,891

Income tax provision

(13,027)

(9,652)

(69,655)

(37,150)

Net income

$            18,473

$           13,398

$          107,624

$          54,741

Basic and diluted earnings per share:

Basic

$                0.42

$              0.30

$                2.45

$              1.24

Diluted

$                0.41

$              0.30

$                2.40

$              1.23

Shares used in per share calculations:

Basic

44,141

44,136

44,016

44,093

Diluted

45,137

44,871

44,918

44,517

SOURCE DSW Inc.



RELATED LINKS

http://www.DSWinc.com