Footwear retailer DSW Inc Q3 net sales gain 15%

07 Dec '05

3 min read

Leading specialty branded footwear retailer DSW Inc announced net income of $10.9 million on net sales of $302.2 million for the fiscal third quarter ended October 29, 2005, compared with net income of $9.4 million on net sales of $262.4 million for the fiscal third quarter of 2004.

Diluted earnings per share were $0.25 for the third quarter of 2005 compared with $0.34 for last year's third quarter.

Comparable store sales for the third quarter of 2005 increased 3.5 percent compared with an increase of 0.8 percent for the same period last year.

On June 29, 2005, DSW's initial public offering of 16.2 million shares of Class A common stock, which included the underwriters' over-allotment option of 2.1 million shares, was sold at $19.00 per share.

The Company received net proceeds of $277.9 million and used $196.6 million of the net proceeds to repay in full $190.0 million in dividend notes and accrued interest to the Company's controlling shareholder, Retail Ventures Inc.

For the nine months ended October 29, 2005, net income was $27.1 million on net sales of $860.3 million, compared with net income for the like period last year of $26.2 million on net sales of $729.4 million.

The fiscal 2005 nine-month results include $6.6 million of dividend interest expense on the notes to RVI, and $6.5 million for the accrual for losses associated with the data theft announced in March 2005.

Diluted earnings per share for the nine months were $0.77 compared with $0.94 for the comparable nine-month period last year.

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