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 August 25, 2015 |
DSW Inc. | ||||
By: | /s/ William L. Jordan | |||
William L. Jordan | ||||
Chief Administrative Officer, Executive Vice President and General Counsel | ||||
Date: | August 25, 2015 |
• | Second quarter sales increase 6.8% to $627 million; comparable sales increase 1.8% |
• | First six months sales increase 8.1% to $1.28 billion; comparable sales increase 3.5% |
• | Second quarter EPS from continuing operations increases 13.5% to $0.42 per share compared to last year's $0.37 per share |
• | Company reiterates full year outlook for EPS in the range of $1.80 to $1.90 per share |
• | Board of Directors approves a quarterly dividend of $0.20 per share |
• | Sales increased 6.8% to $627 million compared to last year's sales of $587 million. |
• | Comparable sales increased by 1.8% compared to last year's increase of 0.8%. |
• | Gross profit increased 120 bps driven primarily by lower markdown activity. |
• | Operating expense rate increased by 80 bps due to higher stock and incentive compensation. |
• | Net income from continuing operations increased by 10.7% to $37.6 million. |
• | Earnings per share from continuing operations increased by 13.5% to $0.42 per share compared to last year's $0.37 per share. |
• | Sales increased 8.1% to $1.28 billion compared to last year's sales of $1.19 billion. |
• | Comparable sales increased by 3.5% compared to last year's decrease of 1.5%. |
• | Net income from continuing operations increased by 17.0% to $85.0 million. |
• | Earnings per share from continuing operations increased by 20.3% to $0.95 per share compared to last year's $0.79 per share. |
• | Cash, short-term and long-term investments totaled $471 million compared to $465 million in the second quarter last year. |
• | Inventories were $505 million compared to $415 million at the end of the second quarter last year. On a cost per square foot basis, DSW inventories increased by 14.2%. Excluding opportunistic buys, inventories on a cost per square foot increased by 6.3%. |
Net sales by reportable segment | |||||||||||||||||||||
Thirteen weeks ended | Twenty-six weeks ended | ||||||||||||||||||||
August 1, 2015 | August 2, 2014 | % change | August 1, 2015 | August 2, 2014 | % change | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||
DSW segment | $ | 592,583 | $ | 553,814 | 7.0 | % | $ | 1,204,794 | $ | 1,112,680 | 8.3 | % | |||||||||
ABG segment | 34,623 | 33,282 | 4.0 | % | 77,898 | 73,363 | 6.2 | % | |||||||||||||
DSW Inc. | $ | 627,206 | $ | 587,096 | 6.8 | % | $ | 1,282,692 | $ | 1,186,043 | 8.1 | % |
Comparable sales change by reportable segment | |||||||
Thirteen weeks ended | Twenty-six weeks ended | ||||||
August 1, 2015 | August 2, 2014 | August 1, 2015 | August 2, 2014 | ||||
DSW segment | 1.9% | 0.8% | 3.5% | (1.7)% | |||
ABG segment | 0.7% | 2.5% | 3.1% | 1.6% | |||
DSW Inc. | 1.8% | 0.8% | 3.5% | (1.5)% |
Gross profit by reportable segment | |||||||||||
Thirteen weeks ended | Twenty-six weeks ended | ||||||||||
August 1, 2015 | August 2, 2014 | August 1, 2015 | August 2, 2014 | ||||||||
DSW segment | 31.2 | % | 30.0 | % | 32.3 | % | 30.9 | % | |||
ABG segment | 19.0 | % | 17.5 | % | 20.0 | % | 21.2 | % | |||
DSW Inc. | 30.5 | % | 29.3 | % | 31.5 | % | 30.3 | % |
Stores and square footage data | |||||
As of | |||||
August 1, 2015 | August 2, 2014 | ||||
DSW stores open, end of period | 449 | 410 | |||
DSW stores total square footage (in thousands) | 9,529 | 8,924 |
August 1, 2015 | January 31, 2015 | August 2, 2014 | |||||||||
Assets | |||||||||||
Cash and equivalents | $ | 151,007 | $ | 59,171 | $ | 87,406 | |||||
Short-term investments | 140,821 | 171,201 | 151,647 | ||||||||
Accounts receivable, net | 18,596 | 24,407 | 27,868 | ||||||||
Inventories | 505,170 | 450,836 | 414,988 | ||||||||
Prepaid expenses and other current assets | 31,599 | 43,108 | 52,515 | ||||||||
Deferred income taxes | 23,167 | 19,747 | 22,331 | ||||||||
Total current assets | 870,360 | 768,470 | 756,755 | ||||||||
Property and equipment, net | 354,477 | 337,903 | 331,269 | ||||||||
Long-term investments | 179,305 | 216,756 | 225,972 | ||||||||
Goodwill | 25,899 | 25,899 | 25,899 | ||||||||
Deferred income taxes | 8,944 | 11,332 | 12,466 | ||||||||
Investment in Town Shoes | 21,986 | 25,887 | 24,788 | ||||||||
Note receivable from Town Shoes | 44,627 | 43,304 | 47,755 | ||||||||
Other assets | 8,466 | 8,692 | 8,863 | ||||||||
Total assets | $ | 1,514,064 | $ | 1,438,243 | $ | 1,433,767 | |||||
Liabilities and shareholders' equity | |||||||||||
Accounts payable | $ | 190,911 | $ | 170,610 | $ | 192,999 | |||||
Accrued expenses | 113,466 | 113,180 | 107,123 | ||||||||
Total current liabilities | 304,377 | 283,790 | 300,122 | ||||||||
Non-current liabilities | 144,029 | 143,333 | 142,479 | ||||||||
Total shareholders' equity | 1,065,658 | 1,011,120 | 991,166 | ||||||||
Total liabilities and shareholders' equity | $ | 1,514,064 | $ | 1,438,243 | $ | 1,433,767 |
Thirteen weeks ended | Twenty-six weeks ended | |||||||||||||||
August 1, 2015 | August 2, 2014 | August 1, 2015 | August 2, 2014 | |||||||||||||
Net sales | $ | 627,206 | $ | 587,096 | $ | 1,282,692 | $ | 1,186,043 | ||||||||
Cost of sales | (435,904 | ) | (415,192 | ) | (878,332 | ) | (826,134 | ) | ||||||||
Gross profit | 191,302 | 171,904 | 404,360 | 359,909 | ||||||||||||
Operating expenses | (131,721 | ) | (118,582 | ) | (271,207 | ) | (245,336 | ) | ||||||||
Operating profit | 59,581 | 53,322 | 133,153 | 114,573 | ||||||||||||
Interest income, net | 752 | 659 | 1,672 | 1,650 | ||||||||||||
Non-operating (expense) income | (7 | ) | — | 3,305 | — | |||||||||||
Income from continuing operations before income taxes and (loss) income from Town Shoes | 60,326 | 53,981 | 138,130 | 116,223 | ||||||||||||
Income tax provision | (22,486 | ) | (20,860 | ) | (51,582 | ) | (44,463 | ) | ||||||||
(Loss) income from Town Shoes | (230 | ) | 849 | (1,572 | ) | 849 | ||||||||||
Income from continuing operations | 37,610 | 33,970 | 84,976 | 72,609 | ||||||||||||
Income from discontinued operations, net of tax | — | 358 | — | 358 | ||||||||||||
Net income | $ | 37,610 | $ | 34,328 | $ | 84,976 | $ | 72,967 | ||||||||
Diluted shares used in per share calculations: | 89,693 | 91,126 | 89,660 | 91,618 | ||||||||||||
Diluted earnings per share: | ||||||||||||||||
Diluted earnings per share from continuing operations | $ | 0.42 | $ | 0.37 | $ | 0.95 | $ | 0.79 | ||||||||
Diluted earnings per share from discontinued operations | — | 0.00 | — | 0.00 | ||||||||||||
Diluted earnings per share | $ | 0.42 | $ | 0.38 | $ | 0.95 | $ | 0.80 |