Ohio | 001-32545 | 31-0746639 | ||
(State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
810 DSW Drive, Columbus, Ohio | 43219 | |
(Address of Principal Executive Offices) | (Zip Code) |
(Former name or former address if changed since last report.) |
Exhibit Number | Description | ||
99.1 | Press Release dated March 17, 2014 |
• | Fourth quarter Adjusted sales increase 12% to $640 million; comparable sales increase 7.6% |
• | Fourth quarter Adjusted EPS is $0.35 per share, up 13% from the prior year |
• | Full year Adjusted sales increase 6.2% to $2.5 billion; comparable sales increase 1.8% |
• | Full year Reported EPS is $1.69 per share, an increase of 2.4% from the prior year |
• | Full year Adjusted EPS is $1.69 per share, a decline of 10% from the prior year |
• | Fiscal 2015 EPS guidance of $1.80 to $1.90 per share |
• | Board of Directors increases quarterly dividend to $0.20 per share |
• | Reported sales increased 11.9% to $640 million compared to last year's sales of $572 million. |
• | Adjusted sales increased 12.1% to $640 million compared to last year's sales of $571 million, excluding sales from the Company's luxury test. |
• | Comparable sales increased 7.6% compared to last year's flat comparable sales. |
• | Reported net income was $30.8 million, or $0.34 per diluted share, which included an expense related to RVI of $0.1 million. This compares to last year's $28.1 million, or $0.30 per diluted share, which included $0.6 million of net charges related to RVI and the Company's luxury test. |
• | Adjusted net income was $30.9 million, or $0.35 per diluted share, an increase of 13% over last year's $28.7 million, or $0.31 per diluted share. |
• | Reported sales increased 5.4% to $2.5 billion compared to last year's sales of $2.4 billion. Last year's sales included $18 million from the Company's luxury test. |
• | Adjusted sales increased 6.2% to $2.5 billion compared to last year's sales of $2.4 billion. |
• | Comparable sales increased by 1.8% compared to last year's increase of 0.2%. |
• | Reported net income was $153.3 million, or $1.69 per diluted share, an increase of 2.4% over last year's Reported earnings per share of $1.65 per diluted share. Last year's Reported earnings per share includes $0.23 per share in charges related to RVI and the Company's luxury test. |
• | Adjusted net income was $153.5 million, or $1.69 per diluted share, a decrease of 10% from last year's $1.88 per diluted share. |
• | Cash, short term and long term investments totaled $447 million compared to $579 million in the fourth quarter last year. |
• | On a cost per square foot basis, DSW inventories increased by 6.5% at the end of quarter. Excluding pre-buys, inventory cost per square foot increased by 2.8%. |
Net sales by reportable segment | |||||||||||||||||||||
Thirteen weeks ended | Thirteen weeks ended | Fifty-two weeks ended | Fifty-two weeks ended | ||||||||||||||||||
January 31, 2015 | February 1, 2014 | % change | January 31, 2015 | February 1, 2014 | % change | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||
DSW | $ | 607,010 | $ | 539,877 | 12.4 | % | $ | 2,352,464 | $ | 2,230,996 | 5.4 | % | |||||||||
Affiliated Business Group | 33,167 | 32,390 | 2.4 | % | 143,628 | 137,672 | 4.3 | % | |||||||||||||
Total DSW Inc. | $ | 640,177 | $ | 572,267 | 11.9 | % | $ | 2,496,092 | $ | 2,368,668 | 5.4 | % | |||||||||
Less: Luxury sales | — | 1,018 | — | 18,436 | |||||||||||||||||
Total Adjusted DSW Inc. sales | $ | 640,177 | $ | 571,249 | 12.1 | % | $ | 2,496,092 | $ | 2,350,232 | 6.2 | % |
Comparable sales change by reportable segment (excludes luxury) | |||||||
Fiscal quarter ended | Fiscal year ended | ||||||
January 31, 2015 | February 1, 2014 | January 31, 2015 | February 1, 2014 | ||||
DSW | 7.8% | (0.1)% | 1.8% | 0.1% | |||
Affiliated Business Group | 3.3% | 1.8% | 1.6% | 1.8% | |||
Total DSW Inc. | 7.6% | 0.0% | 1.8% | 0.2% |
Square footage data | |||
As of | |||
January 31, 2015 | February 1, 2014 | ||
DSW stores open, end of period | 431 | 394 | |
DSW total square footage (in thousands) | 9,277 | 8,687 |
As of | As of | ||||||
January 31, 2015 | February 1, 2014 | ||||||
Assets | |||||||
Cash and equivalents | $ | 59,171 | $ | 112,021 | |||
Short-term investments | 171,201 | 224,098 | |||||
Accounts receivable, net | 24,407 | 26,646 | |||||
Inventories | 450,836 | 397,768 | |||||
Prepaid expenses and other current assets | 43,108 | 34,101 | |||||
Deferred income taxes | 19,747 | 18,130 | |||||
Total current assets | 768,470 | 812,764 | |||||
Property and equipment, net | 337,903 | 318,620 | |||||
Long-term investments | 216,756 | 243,188 | |||||
Goodwill | 25,899 | 25,899 | |||||
Deferred income taxes | 11,332 | 11,587 | |||||
Investment in Town Shoes of Canada | 25,887 | — | |||||
Note Receivable from Town Shoes of Canada | 43,304 | — | |||||
Other assets | 8,692 | 9,186 | |||||
Total assets | $ | 1,438,243 | $ | 1,421,244 | |||
Liabilities and shareholders' equity | |||||||
Accounts payable | $ | 170,610 | $ | 168,705 | |||
Accrued expenses | 113,180 | 115,697 | |||||
Total current liabilities | 283,790 | 284,402 | |||||
Non-current liabilities | 143,333 | 138,298 | |||||
Total shareholders' equity | 1,011,120 | 998,544 | |||||
Total liabilities and shareholders' equity | $ | 1,438,243 | $ | 1,421,244 |
Thirteen weeks ended | Thirteen weeks ended | Fifty-two weeks ended | Fifty-two weeks ended | |||||||||||||
January 31, 2015 | February 1, 2014 | January 31, 2015 | February 1, 2014 | |||||||||||||
Net sales | $ | 640,177 | $ | 572,267 | $ | 2,496,092 | $ | 2,368,668 | ||||||||
Cost of sales | (463,622 | ) | (412,289 | ) | (1,741,071 | ) | (1,629,381 | ) | ||||||||
Gross profit | 176,555 | 159,978 | 755,021 | 739,287 | ||||||||||||
Operating expenses | (128,681 | ) | (115,113 | ) | (512,889 | ) | (497,899 | ) | ||||||||
Operating profit | 47,874 | 44,865 | 242,132 | 241,388 | ||||||||||||
Interest income, net | 602 | 762 | 2,795 | 2,619 | ||||||||||||
Income from continuing operations before income taxes and income from Town Shoes of Canada | 48,476 | 45,627 | 244,927 | 244,007 | ||||||||||||
Income tax provision | (19,527 | ) | (17,521 | ) | (95,713 | ) | (92,705 | ) | ||||||||
Income from Town Shoes of Canada | 1,915 | 3,813 | ||||||||||||||
Income from continuing operations | 30,864 | 28,106 | 153,027 | 151,302 | ||||||||||||
Total income from discontinued operations, net of tax | (86 | ) | — | 272 | — | |||||||||||
Net income | $ | 30,778 | $ | 28,106 | $ | 153,299 | $ | 151,302 | ||||||||
Diluted shares used in per share calculations: | 89,415 | 92,175 | 90,612 | 91,901 | ||||||||||||
Diluted earnings per share: | ||||||||||||||||
Diluted earnings per share from continuing operations | $ | 0.35 | $ | 0.30 | $ | 1.69 | $ | 1.65 | ||||||||
Diluted earnings per share from discontinued operations | $ | 0.00 | $ | — | $ | 0.00 | $ | — | ||||||||
Diluted earnings per share | $ | 0.34 | $ | 0.30 | $ | 1.69 | $ | 1.65 |
Thirteen weeks ended January 31, 2015 | Fifty-Two weeks ended January 31, 2015 | ||||||||||||||
Net income | Diluted earnings per share | Net income | Diluted earnings per share | ||||||||||||
Reported Measure | $ | 30,778 | $ | 0.34 | $ | 153,299 | $ | 1.69 | |||||||
Adjustments: | |||||||||||||||
RVI income, net of tax | — | — | (377 | ) | (1) | 0.00 | |||||||||
Loss (income) from discontinued operations, net of tax | 86 | (1) | 0.00 | (272 | ) | (1) | 0.00 | ||||||||
Income tax expense | — | — | 864 | (2) | 0.01 | ||||||||||
Adjusted Measure | $ | 30,864 | $ | 0.35 | $ | 153,514 | $ | 1.69 |
Thirteen weeks ended February 1, 2014 | Fifty-Two weeks ended February 1, 2014 | ||||||||||||||
Net income | Diluted earnings per share | Net income | Diluted earnings per share | ||||||||||||
Reported Measure | $ | 28,106 | $ | 0.30 | $ | 151,302 | $ | 1.65 | |||||||
Adjustments: | |||||||||||||||
Luxury performance gross loss, net of tax | 705 | (3) | 0.01 | 12,226 | (3) | 0.13 | |||||||||
Other RVI related income and RVI pension, net of tax | (125 | ) | (4) | — | 9,230 | (5) | 0.10 | ||||||||
Adjusted Measure | $ | 28,686 | $ | 0.31 | $ | 172,758 | $ | 1.88 |