Retail Ventures, Inc. Reports Fourth Quarter and Year End Operating Results

COLUMBUS, Ohio, April 14 /PRNewswire/ -- Retail Ventures, Inc. (NYSE: RVI) today announced its consolidated financial results for the fourth quarter and year ended January 30, 2010.

On April 21, 2009, Retail Ventures sold all of the outstanding capital stock of Filene's Basement to FB II Acquisition Corp., a newly formed entity owned by Buxbaum Holdings, Inc. On May 4, 2009, Filene's Basement filed for bankruptcy protection.

• The loss from continuing operations for the quarter ended January 30, 2010 was $5.3 million on net sales of $402.6 million, compared to income from continuing operations of $17.9 million on net sales of $348.2 million for the quarter ended January 31, 2009. DSW same store sales increased 12.9% during the fourth quarter versus a decrease of 7.2% last year.

• Diluted loss per share from continuing operations attributable to Retail Ventures, Inc. common shareholders was $0.21 for the fourth quarter compared with diluted earnings per share from continuing operations attributable to Retail Ventures, Inc. of $0.43 per share last year.

• The loss from continuing operations for the year ended January 31, 2009 was $65.6 million on net sales of $1.60 billion, compared to income from continuing operations of $109.2 million on net sales of $1.46 billion for the prior year.  DSW same store sales increased 3.2% for the year versus a decrease of 5.9% last year.

• Diluted loss per share from continuing operations attributable to Retail Ventures, Inc. common shareholders was $1.76 per share for the year compared with earnings per share from continuing operations attributable to Retail Ventures, Inc. of $2.00 per share last year.

The Company believes that the non-cash accounting charge associated with the change in fair value of derivative instruments is not directly related to its retail operations and is therefore providing supplemental adjusted results that exclude this item. This non-GAAP financial measure should facilitate analysis by investors and others who follow the Company's financial performance. A reconciliation of non-GAAP results follows (in thousands except per share amounts):

Retail Ventures, Inc. is a leading off-price retailer operating as of January 30, 2010, 305 DSW shoe stores in 39 states.  DSW also supplies shoes, under supply arrangements, to 356 locations for other non-related retailers in the United States and operates dsw.com.

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

Any statements in this release that are not historical or current facts are forward-looking statements. All forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors that could cause our future financial performance in fiscal 2009 and beyond to differ materially from those expressed or implied in any such forward-looking statements. Certain of these risks and uncertainties are described in the "Risk Factors" section of the Company's latest quarterly or annual report, as filed with the SEC. These factors include, but are not limited to: our ability to manage and enhance liquidity; DSW's success in opening and operating new stores on a timely and profitable basis; continuation of DSW's supply agreements and the financial condition of its leased business partners; DSW maintaining good relationships with its vendors; DSW's ability to anticipate and respond to fashion trends; fluctuation of DSW's comparable store sales and quarterly financial performance; the realization of our bankruptcy claims related to liquidating Filene's Basement and Value City; the impact of the disposition of Filene's Basement and of a majority interest in Value City and the reliance on remaining subsidiaries to pay indebtedness and intercompany service obligations; the risk of Value City and liquidating Filene's Basement not paying us or their creditors, for which Retail Ventures may have some liability; the risk of new Filene's Basement not paying obligations related to the assets it has assumed from liquidating Filene's Basement if such obligations are subject to ongoing guarantee by us; the impact of Value City and Filene's Basement on our liquidity; disruption of DSW's distribution operations; our dependence on DSW for key services; failure to retain our key executives or attract qualified new personnel; DSW's 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; the success of dsw.com; lease of an office facility; risks related to our cash and investments; and DSW's ability to secure a replacement credit facility upon the expiration of its existing credit facility. 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. Any forward-looking statement speaks only as of the date on which such statement is made.  The Company undertakes no obligation to revise the forward-looking statements included in this press release to reflect any future events or circumstances.

SOURCE Retail Ventures, Inc.