[ACCESSWIRE]
Upcoming AWS Coverage on Citi Trends Post-Earnings Results
LONDON, UK / ACCESSWIRE / March 27, 2017 / Active Wall St. announces its post-earnings coverage on DSW Inc. (NYSE: DSW). The Company released its financial results for its fourth quarter and fiscal year 2016 on March 14, 2017. The discount shoe retailer surpassed earnings expectations. Register with us now for your free membership at:
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One of DSW Inc.'s competitors within the Apparel Stores space, Citi Trends, Inc. (NASDAQ: CTRN), reported on March 10, 2017, its fourth quarter and fiscal 2016 results. AWS will be initiating a research report on Citi Trends in the coming days.
Today, AWS is promoting its earnings coverage on DSW; touching on CTRN. Get our free coverage by signing up to:
http://www.activewallst.com/register/
Earnings Reviewed
For the thirteen weeks ended January 28th, 2017, DSW's sales increased 0.4% to $674.62 million, including $27.9 million of revenues from Ebuys compared to revenue of $672.04 million for Q4 FY15. The Company's reported numbers came in below analysts' consensus of $692 million. DSW's comparable sales decreased 7% compared to previous year's 0.7% increase. For FY16, DSW's sales increased 3.5% to $2.7 billion, including $83.9 million from the Company's acquisition of Ebuys.
For Q4 FY16, DSW's reported net income was $30.5 million, or $0.38 per diluted share, which included a net favorable adjustment of $0.18 per share related to the reduction of its contingent consideration liability, the amortization of acquired intangibles, and inventory step-up costs related to Ebuys, and restructuring expenses compared to net income of $11.76 million, or $0.14 per diluted share, for the prior year's same period. The Company's adjusted net income totaled $16.5 million, or $0.20 per diluted share, an increase of 43% over last year. DSW's earnings number surpassed Wall Street's estimates of $0.16 per share.
For FY16, DSW's reported net income was $124.5 million, or $1.52 per diluted share, which included a net favorable adjustment of $0.06 per share related to the reduction of its contingent consideration liability, the amortization of acquired intangibles, transaction costs, and inventory step-up costs related to Ebuys, and restructuring expenses. The Company's adjusted net income was $120.1 million, or $1.46 per diluted share, a 5% decrease from last year.
Key Highlights
During FY16, the Company successfully expanded DSW's presence in Canada with 23 locations, with plans to open the Company's first two stores outside North America. The Company successfully launched DSW kids shops at 227 locations with plans to open 77 additional locations in 2017. During the year, DSW completed a comprehensive expense management initiative that identified $25 million in cost savings on an annualized basis. The Company returned $115 million to shareholders, including $65 million in dividends and $50 million in share repurchases.
Balance Sheet
For Q4 FY16, DSW's cash, short-term and long-term investments totaled $287 million compared to $330 million in Q4 FY15. The Company's inventories were $500 million compared to $484 million last year, including $31 million from Ebuys. On a cost per square foot basis, DSW inventories had declined by 8%. The Company generated $125 million in free cash flow this year. DSW reported capital spending of $14 million in Q4 FY16, bringing its full-year CapEx to $79 million, 17% below its original expectation at the start of the year.
During Q4 FY16, DSW repurchased 0.4 million shares for $7.3 million. For the full year, the Company repurchased a total of 2.4 million shares for a total of $50 million and has $33.5 million remaining under its share repurchase program.
DSW's Board of Directors declared a quarterly cash dividend of $0.20 per share. The dividend will be paid on March 31, 2017, to shareholders of record at the close of business on March 17, 2017.
Fiscal 2017 Annual Outlook
For the fifty-three-week period ending February 03, 2018, DSW is forecasting revenue growth in the range of 3% to 5% with comparable sales ranging from a flat to low single digit decline compared to the prior year. The Company expects to open 12 to 15 net new locations during the year.
Stock Performance
At the close of trading session on Friday, March 24, 2017, DSW Inc.'s stock price marginally rose 0.68% to end the day at $19.27. A total volume of 1.08 million shares were exchanged during the session. The Company's shares are trading at a PE ratio of 12.71 and have a dividend yield of 4.15%. The stock currently has a market cap of $1.53 billion.
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