DSW Q4 sales flat, updates 2013 guidance

REPORT_ DSW has announced that its fourth quarter 2013 comparable sales for the thirteen-week period ended February 1, 2014 were flat compared to a 3.6 percent increase for the same period last year. Full year adjusted revenues grew by 4.1

percent to 2.35 billion dollars, excluding luxury sales of 18 million dollars. This was driven by a 0.2 percent increase in comparable sales and the opening of 30 new stores. Excluding the fifty-third week last year, full year adjusted revenues increased by 5.6 percent.

Excluding

luxury sales of 1 million dollars, total adjusted revenues decreased by 3.9 percent to 571 million dollars, for the thirteen week period ended February 1, 2014 versus 594 million dollars for the fourteen week period ended February 2, 2013. Excluding the impact of the fifty-third week last year, total adjusted revenues increased by 1.6 percent.

According to Mike MacDonald, President and Chief Executive Officer, “Given the weak retail environment, we were satisfied with our financial performance. The updated earnings guidance means that DSW will post its fifth consecutive year of double digit EPS growth.”

The company based in Columbus, Ohio narrowed its 2013 adjusted EPS guidance to a range of 1.85 dollars to 1.87 dollars per share. The new guidance range compares to the previous guidance of 1.80 dollars to 1.90 dollars per share and represents approximately 11 percent earnings growth.

The company also announced Douglas Probst, Executive Vice President and Chief Financial Officer will be retiring effective May 1, 2014, after nine years of service. Probst joined DSW in 2005 and successfully guided the company through its transition to a public company and its merger with Retail Ventures in 2011. Helen Betsy Wallace, the company's Senior Vice President of Finance who joined the company in May 2013, will continue to serve as the company's Principal Accounting Officer with responsibility for accounting, treasury, tax and internal audit functions.

“I want to thank Doug for his nine years of financial stewardship at DSW. During that period, the Company doubled its sales and grew its net income by almost five times. Doug's contributions to DSW's success were significant and he will be missed. I thank Doug for his contributions and wish him success in his future endeavors,” stated Mr. MacDonald.