DSW (DSW) 2Q17 Results: Beats on EPS and Revenue, Maintains Guidance

Executive Summary

• DSW reported 2Q17 adjusted EPS of $0.38, ahead of the $0.29 consensus estimate and up 8.6% from the year-ago period. Total revenues were $680.4 million, up 3.3% year over year and beating the $666.1 million consensus estimate.
• Comparable-store sales were up 0.6%, which was better than the 2.2% decline analysts had expected and the 1.2% decline recorded in the year-ago quarter. DSW segment comp sales were up 0.6%; the increase was partially offset by a 0.1% decline by the Affiliated Business Group (ABG) segment.
• The company did not update its prior EPS guidance of $1.45–$1.55 for FY17. The consensus calls for EPS of $1.44.FY17 guidance calls for revenue growth of 3.0%–4.0% and for comp growth to be flat year over year.