DSW Stock Takes Ugly Hit on Poor Shoe Sales

Same store sales are expected to decline this year

   

DSW Stock Takes Ugly Hit on Poor Shoe Sales

On Wednesday, DSW (DSW) posted disappointing fiscal first-quarter results and trimmed its outlook for the rest of the year. Investors didn’t like the news and DSW stock plunged about 20% in pre-market trading.

DSW 300x300 DSW Stock Takes Ugly Hit on Poor Shoe Sales DSW shares sank after the shoe retailer said it earned $38.6 million during the quarter. That was slightly better than the $34.5 million profit it reported in the year-ago period. EPS came in at 42 cents, but that missed the 48 cents that analysts had forecast, the Wall Street Journal noted.

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Sales of $598.9 million fell short of the $622 million that analysts had forecast.

Looking forward, DSW said that it now anticipates full-year earnings of between $1.45 and $1.60 per share. DSW had previously predicted a fiscal year profit of between $1.80 and $1.95 per share.

DSW also indicated that it expects same-store sales to fall in the low single digits this year.

The retailer’s stock closed at $32.93 per share on Tuesday.

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Article printed from InvestorPlace Media, http://investorplace.com/2014/05/dsw-stock-takes-ugly-hit-poor-shoe-sales/.

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