[ACCESSWIRE]
LONDON, UK / ACCESSWIRE / September 1, 2016 / Active Wall St. announces its post-earnings coverage on DSW Inc. (NYSE: DSW). The company posted its financial results for the second quarter fiscal 2016 (Q2 FY16) and first half fiscal 2016 (H1 FY16) on August 30, 2015. The Columbus, Ohio-based company reported better-than-expected second quarter earnings numbers and reiterated its full-year earnings forecast. Register with us now for your free membership at: http://www.activewallst.com/register/.
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Earnings Numbers
For the three months ended on July 30, 2015, DSW reported net sales of $658.94 million up 5.1% from the prior year's corresponding quarter. Net sales topped analysts' forecasts of $658 million. However, the company's comparable sales were down by 1.2% in the reported compared to an improvement of 1.8% in the prior year's quarter. DSW's net income for Q2 FY16 came in at $25.03 million, or $0.30 per diluted share, compared to $37.61 million, or $0.42 per diluted share, in Q2 FY15.
The Designer Shoe Warehouse's adjusted net income for Q2 FY16 stood at $29.09 million, or $0.35 per diluted share, above analysts' expectation of $0.30 per diluted share.
During H1 FY16, the company's net sales grew 4.5% to $1.34 billion from $1.28 billion recorded in the comparable year ago period. However, comparable sales fell by 1.4% in H1 FY16, against a gain of 3.5% during the first six months of fiscal 2015. DSW reported net income of $55.05 million, or $0.67 per diluted share, for H1 FY16 compared to $84.98 million, or $0.95 per diluted share, in H1 FY15.
"We are on track to deliver our outlook for the full year and we've made progress on a number of initiatives to drive sales and improve our financial trajectory," said Roger Rawlins, Chief Executive Officer of DSW Inc., "We are committed to getting back to sustained earnings growth while planting the seeds for long term success."
DSW had cash and equivalents worth $62.32 million at the close of book on July 30, 2015, compared to $151.01 million as on August 01, 2015.
As of July 30, 2016, the branded footwear and accessories retailer had 480 stores compared to 449 stores as on August 01, 2015.
Segment-Wise
The company's DSW segment reported net sales of $603.93 million for the quarter ending July 30, 2016 compared to $592.58 million recorded during Q2 FY15. Furthermore, ABG segment's net sales improved 2.4% on y-o-y basis to $35.45 million in Q2 FY16. However, comparable sales for the reporter quarter for both DSW and ABG segments were down 1.2% and 1.0%, respectively.
Dividend
In its quarterly earnings report, the company announced the provision of a quarterly cash dividend payment of $0.20 per share, which will be paid on September 30, 2016 to shareholders of record at the close of business on September 16, 2016.
Outlook
For full FY16, DSW reiterated its earnings guidance of $1.32 per share to $1.42 per share. The company also informed Wall Street that its guidance excludes the impact of purchase price accounting, transaction costs and the fair market value accounting related to the acquisition of Ebuys, and current and future charges related to its expense management review.
Stock Performance
On August 31, 2016, DSW's shares gained 2.66% to close the trading session at $23.95. A total volume of 4.82 million shares were traded during the session, which was above the 3 months average volume of 1.93 million shares. The company's stock price has gained 3.90% in the past one month and has advanced 13.51% in the past three months. Currently, the stock is trading at a P/E ratio of 17.57.
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