Exhibit 99.1
For Release at 7:00 AM Eastern on March 25, 2009
DSW INC. REPORTS 2008 FOURTH QUARTER AND YEAR END
FINANCIAL RESULTS
COLUMBUS, Ohio, March 25, 2009/PRNewswire/ — DSW Inc. (NYSE: DSW), a leading branded footwear specialty retailer, announced a net loss of $7.5 million on net sales of $348.2 million for the quarter ended January 31, 2009 compared with net income of $1.1 million on net sales of $332.5 million for the quarter ended February 2, 2008. Same store sales decreased 7.2% versus a decrease of 1.7% last year.
Diluted loss per share was $0.17 for the fourth quarter compared with diluted earnings per share of $0.02 last year.
Annual Results
Net income was $26.9 million on net sales of $1.46 billion for the year-to-date period ended January 31, 2009 compared with net income of $53.8 million on net sales of $1.41 billion for the year-to-date period ended February 2, 2008. Same store sales decreased 5.9% versus a decrease of 0.8% last year.
Diluted earnings per share were $0.61 for the year-to-date period compared with $1.21 last year.
Fiscal 2009 Outlook
The Company anticipates a mid-single digit decrease in comparable store sales and expects to open approximately 10 new DSW stores compared to 41 new stores in 2008. Capital expenditures are expected to decrease to approximately $35 million from $81 million in 2008.
Given the current uncertainty in the macro-economic environment, the Company is not providing guidance for annual diluted earnings per share at this time.
The Company will discuss its 2009 outlook more fully on its webcasted conference call to be held today.
Webcast and Conference Call
To hear the Company’s live earnings conference call, log on towww.dswinc.com today at 8:00 AM Eastern, or call 1-800-510-9836 and reference passcode 84948324. To hear a replay of the earnings call, which will be available approximately two hours after the conference call ends, dial 1-888-286-8010, followed by passcode 84841285. An audio replay of the conference call, as well as additional financial information, will also be available atwww.dswinc.com.
About DSW Inc.
DSW Inc. is a leading branded footwear specialty retailer that offers a wide selection of brand name and designer dress, casual and athletic footwear for women and men. As of March 25, 2009, DSW operated 300 stores in 37 states and operated an e-commerce site, www.dsw.com. DSW also supplied footwear to 367 leased locations in the United States. For store locations and additional information about DSW, visitwww.dswinc.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Any statements in this release that are not historical facts, including the statements made in our “Outlook,” are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the Company’s current expectations and involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These factors include, but are not limited to: our success in opening and operating new stores on a timely and profitable basis; continuation of our supply agreements with our leased departments; maintaining good relationships with our vendors; our ability to anticipate and respond to fashion trends; fluctuation of our comparable store sales and quarterly financial performance; disruption of our distribution operations; the realization of our bankruptcy claim related to Value City Department Stores; failure to retain our key executives or attract qualified new personnel; our competitiveness with respect to style, price, brand availability and customer service; declining general economic conditions; risks inherent to international trade with countries that are major manufacturers of footwear; the success of dsw.com; liquidity risks related to our investments; our ability to secure additional credit upon the termination of our existing credit facility; and liquidity risks at Retail Ventures and Filene’s Basement and their impact on DSW and the allocation of shared services. Additional factors that could cause our actual results to differ materially from our expectations are described in the Company’s latest annual or quarterly report, as filed with the SEC. All forward-looking statements speak only as of the time when made. The Company undertakes no obligation to revise the forward-looking statements included in this press release to reflect any future events or circumstances.
Source: DSW Inc.
CONTACT: Investor Relations for DSW Inc., 1-614-872-1474
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DSW INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| | | | | | | | | |
| | | January 31, | | February 2, |
| | | 2009 | | 2008 |
ASSETS | | | | | | | | |
| Cash and equivalents | | $ | 54,782 | | $ | 61,801 |
| Short-term investments | | | 101,404 | | | 70,005 |
| Accounts receivable, net | | | 7,187 | | | 14,343 |
| Inventories | | | 244,008 | | | 262,037 |
| Prepaid expenses and other current assets | | | 24,790 | | | 23,134 |
| Deferred income taxes | | | 21,876 | | | 20,302 |
| |
| Total current assets | | | 454,047 | | | 451,622 |
| |
| | | | | | | | | |
| Property and equipment, net | | | 233,366 | | | 192,772 |
| Long-term investments, net | | | 1,266 | | | 12,500 |
| Goodwill | | | 25,899 | | | 25,899 |
| Deferred income taxes and other assets | | | 6,619 | | | 11,089 |
| |
| Total assets | | $ | 721,197 | | $ | 693,882 |
| |
| | | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | |
| Accounts payable | | $ | 95,211 | | $ | 114,595 |
| Accrued expenses | | | 63,115 | | | 54,310 |
| |
| Total current liabilities | | | 158,326 | | | 168,905 |
| |
| | | | | | | | | |
| Non-current liabilities | | | 97,287 | | | 91,497 |
| Total shareholders’ equity | | | 465,584 | | | 433,480 |
| |
| Total liabilities and shareholders’ equity | | $ | 721,197 | | $ | 693,882 |
| |
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DSW INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Thirteen | | Fifty two |
| | | weeks ended | | weeks ended |
| | | January 31, | | February 2, | | January 31, | | February 2, |
| | | 2009 | | 2008 | | 2009 | | 2008 |
| Net sales | | $ | 348,150 | | | $ | 332,520 | | | $ | 1,462,944 | | | $ | 1,405,615 | |
| Cost of sales | | | (276,267 | ) | | | (259,651 | ) | | | (1,083,845 | ) | | | (1,035,480 | ) |
| |
| Gross profit | | | 71,883 | | | | 72,869 | | | | 379,099 | | | | 370,135 | |
| Operating expenses | | | (83,672 | ) | | | (71,897 | ) | | | (336,286 | ) | | | (288,814 | ) |
| |
| Operating (loss) profit | | | (11,789 | ) | | | 972 | | | | 42,813 | | | | 81,321 | |
| Interest income, net | | | 777 | | | | 770 | | | | 2,606 | | | | 5,970 | |
| Other-than-temporary impairment charge on investments | | | (1,134 | ) | | | | | | | (1,134 | ) | | | | |
| |
| (Loss) earnings before income taxes | | | (12,146 | ) | | | 1,742 | | | | 44,285 | | | | 87,291 | |
| Income tax benefit (provision) | | | 4,625 | | | | (664 | ) | | | (17,383 | ) | | | (33,516 | ) |
| |
| Net (loss) income | | $ | (7,521 | ) | | $ | 1,078 | | | $ | 26,902 | | | $ | 53,775 | |
| |
| Basic and diluted (loss) earnings per share: | | | | | | | | | | | | | | | | |
| Basic | | $ | (0.17 | ) | | $ | 0.02 | | | $ | 0.61 | | | $ | 1.22 | |
| Diluted | | $ | (0.17 | ) | | $ | 0.02 | | | $ | 0.61 | | | $ | 1.21 | |
| | | | | | | | | | | | | | | | | |
| Shares used in per share calculations: | | | | | | | | | | | | | | | | |
| Basic | | | 44,016 | | | | 43,959 | | | | 43,998 | | | | 43,953 | |
| Diluted | | | 44,016 | | | | 44,118 | | | | 44,218 | | | | 44,273 | |
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