Mar 25, 2009
DSW Q4 loss wider than estimates
Mar 25, 2009
March 25 (Reuters) - Footwear retailer DSW Inc (DSW.N) posted a wider-than-expected quarterly loss, hurt in part by higher costs, and said it would not provide an annual earnings outlook given the uncertainty in the U.S. economy.
The company, which sells branded footwear for men and women at a discount, posted a net loss of $7.5 million, or 17 cents a share, compared with a profit of $1.1 million, or 2 cents a share, a year earlier.
Shoe and apparel companies have been hurt by shoppers reining in spending to concentrate on essentials such as food as they combat falling home values and tighter lending conditions.
Revenue for the quarter was $348.2 million. Same-store sales fell 5.9 percent. Cost of sales rose 6 percent to $276.3 million.
Analysts were expecting a loss of 12 cents a share, before special items, on revenue of $349.3 million, according to Reuters Estimates.
For fiscal 2009, the company expects mid-single digit decrease in comparable-store sales and plans to open about 10 new DSW stores compared with 41 new stores in 2008.
The company's stock closed at $9.97 Tuesday on the New York Stock Exchange. (Reporting by Amitha Rajan in Bangalore; Editing by Jarshad Kakkrakandy)
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