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Designer Shoe Warehouse (DSW) 1Q16 Results: Misses on Revenue and EPS, Lowers Guidance

Executive Summary

  • DSW reported 1Q16 revenues of $681.3 million, up 3.9% year over year but below the consensus estimate of $698.8 million. Adjusted EPS, which excludes $0.04 per share from purchase accounting, was $0.40, below the $0.46 consensus estimate.
  • Comparable-store sales increased by 1.6%, compared to a 5.1% increase in the year-ago quarter.
  • The company reduced its comp, revenue, margin and EPS guidance for 2016, citing current trends in a challenging environment.
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