Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 31, 2015 | Nov. 27, 2015 | |
Class of Stock [Line Items] | ||
Entity Registrant Name | DSW Inc. | |
Entity Central Index Key | 1,319,947 | |
Current Fiscal Year End Date | --01-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Oct. 31, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Class A Common Shares | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 78,877,315 | |
Class B Common Shares | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 7,732,807 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Nov. 01, 2014 | Oct. 31, 2015 | Nov. 01, 2014 | |
Net sales | $ 665,520 | $ 669,872 | $ 1,948,212 | $ 1,855,915 |
Cost of sales | (466,554) | (451,315) | (1,344,886) | (1,277,449) |
Operating expenses | (135,637) | (138,720) | (406,844) | (384,056) |
Operating profit | 63,329 | 79,837 | 196,482 | 194,410 |
Interest expense | (49) | (44) | (127) | (131) |
Interest income | 1,001 | 781 | 2,751 | 2,518 |
Interest income, net | 952 | 737 | 2,624 | 2,387 |
Nonoperating Income (Expense) | (107) | 0 | 3,198 | 0 |
Income from continuing operations before income taxes and income (loss) from Town Shoes | 64,174 | 80,574 | 202,304 | 196,797 |
Income tax provision | (25,575) | (32,069) | (77,157) | (76,532) |
Income (loss) from Town Shoes | 696 | 1,049 | (876) | 1,898 |
Income (Loss) from Continuing Operations Attributable to Parent | 39,295 | 49,554 | 124,271 | 122,163 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | 0 | 0 | 358 |
Net income | $ 39,295 | $ 49,554 | $ 124,271 | $ 122,521 |
Basic and diluted earnings (loss) per share [Abstract]: | ||||
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.45 | $ 0.56 | $ 1.41 | $ 1.36 |
Income (Loss) from Continuing Operations, Per Diluted Share | 0.44 | 0.55 | 1.39 | 1.34 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | 0 | 0 | 0 | 0 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | 0 | 0 | 0 | 0 |
Basic earnings per share | 0.45 | 0.56 | 1.41 | 1.36 |
Diluted earnings per share | $ 0.44 | $ 0.55 | $ 1.39 | $ 1.35 |
Shares used in per share calculations [Abstract]: | ||||
Basic shares | 87,493 | 88,781 | 88,244 | 89,909 |
Diluted shares | 88,369 | 89,810 | 89,229 | 91,014 |
Other comprehensive (loss) income, net of tax [Abstract]: | ||||
Foreign currency translation | $ 28 | $ (1,072) | $ (6,810) | $ (1,161) |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 44 | 0 | (267) | 0 |
Total comprehensive income | $ 39,367 | $ 48,482 | $ 117,194 | $ 121,360 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Nov. 01, 2014 | Oct. 31, 2015 | Nov. 01, 2014 | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $ 36,000 | $ 0 | $ 42,000 | $ 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 | Nov. 01, 2014 |
Assets [Abstract]: | |||
Cash and equivalents | $ 90,019 | $ 59,171 | $ 96,394 |
Short-term investments | 0 | 171,201 | 128,381 |
Accounts receivable, net | 18,211 | 24,400 | 26,528 |
Accounts receivable from related parties | 53 | 7 | 82 |
Inventories | 521,243 | 450,836 | 486,260 |
Prepaid expenses and other current assets | 22,209 | 43,108 | 26,566 |
Deferred income taxes | 25,365 | 19,747 | 23,486 |
Total current assets | 677,100 | 768,470 | 787,697 |
Property and equipment, net | 364,253 | 337,903 | 338,227 |
Long-term investments | 306,483 | 216,756 | 202,259 |
Goodwill | 25,899 | 25,899 | 25,899 |
Deferred income taxes | 8,666 | 11,332 | 14,643 |
Prepaid Expense, Noncurrent | 902 | 794 | 758 |
Equity Method Investments | 21,229 | 25,887 | 24,838 |
Notes Receivable, Related Parties, Noncurrent | 45,930 | 43,304 | 47,819 |
Other assets | 7,566 | 7,898 | 8,092 |
Total assets | 1,458,028 | 1,438,243 | 1,450,232 |
Liabilities and Shareholders' equity [Abstract]: | |||
Accounts payable | 168,537 | 169,518 | 185,181 |
Accounts payable to related parties | 629 | 1,092 | 750 |
Accrued expenses | 117,895 | 113,180 | 125,885 |
Total current liabilities | 287,061 | 283,790 | 311,816 |
Non-current liabilities | 142,834 | 143,333 | 142,540 |
Commitments and Contingencies | 0 | 0 | 0 |
Shareholders’ equity [Abstract]: | |||
Additional Paid in Capital, Common Stock | 924,115 | 908,679 | 902,440 |
Preferred Shares, no par value; 100,000 authorized; no shares issued or outstanding | 0 | 0 | 0 |
Treasury Stock, Value | (150,000) | (86,938) | (86,938) |
Retained earnings | 292,542 | 220,826 | 206,528 |
Basis difference related to acquisition of commonly controlled entity | (24,993) | (24,993) | (24,993) |
Accumulated other comprehensive loss | (13,531) | (6,454) | (1,161) |
Total shareholders’ equity | 1,028,133 | 1,011,120 | 995,876 |
Total liabilities and shareholders’ equity | 1,458,028 | 1,438,243 | 1,450,232 |
Additional Paid-in Capital [Member] | |||
Shareholders’ equity [Abstract]: | |||
Total shareholders’ equity | 924,115 | 908,679 | 902,440 |
Accumulated other comprehensive loss | |||
Shareholders’ equity [Abstract]: | |||
Total shareholders’ equity | $ (13,531) | $ (6,454) | $ (1,161) |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands, $ / shares in Thousands | Oct. 31, 2015 | Jan. 31, 2015 | Nov. 01, 2014 |
Shareholders' equity [Abstract]: | |||
Preferred Shares, par value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Preferred Shares, authorized (in shares) | 100,000 | 100,000 | 100,000 |
Preferred Shares, issued (in shares) | 0 | 0 | 0 |
Preferred Shares, outstanding (in shares) | 0 | 0 | 0 |
Class A Common Shares | |||
Shareholders' equity [Abstract]: | |||
Common Shares, par value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Common Shares, authorized (in shares) | 250,000 | 250,000 | 250,000 |
Common Shares, issued (in shares) | 84,053 | 83,702 | 83,484 |
Common Shares, outstanding (in shares) | 78,877 | 80,666 | 80,448 |
Class B Common Shares | |||
Shareholders' equity [Abstract]: | |||
Common Shares, par value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Common Shares, authorized (in shares) | 100,000 | 100,000 | 100,000 |
Common Shares, issued (in shares) | 7,733 | 7,733 | 7,733 |
Common Shares, outstanding (in shares) | 7,733 | 7,733 | 7,733 |
Treasury Stock [Member] | |||
Shareholders' equity [Abstract]: | |||
Common Shares, outstanding (in shares) | 5,176 | 3,036 | 3,036 |
Treasury Stock, Shares | 5,176 | 3,036 | 3,036 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Class A Common Shares | Class B Common Shares | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings | Basis difference related to acquisition of commonly controlled entity | Accumulated other comprehensive loss |
Balance at Feb. 01, 2014 | $ 998,544 | $ (1,600) | $ 890,698 | $ 134,439 | $ (24,993) | $ 0 | ||
Balance (in shares) at Feb. 01, 2014 | 83,033 | 7,733 | 38 | |||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||||
Net income | 122,521 | 0 | 122,521 | 0 | 0 | |||
Stock-based compensation expense, before related tax effects | 7,261 | 7,261 | 0 | 0 | 0 | |||
Stock units granted | 1,205 | 1,205 | 0 | 0 | 0 | |||
Stock units granted (in shares) | 49 | |||||||
Exercise of stock options | 3,280 | 3,280 | 0 | 0 | 0 | |||
Exercise of stock options, net of settlement of taxes (in shares) | 290 | |||||||
Vesting of restricted stock units, net of settlement of taxes | (1,649) | (1,649) | 0 | 0 | 0 | |||
Vesting of restricted stock units, net of settlement of taxes (in shares) | 74 | |||||||
Stock Repurchased During Period, Value | (85,338) | $ (85,338) | ||||||
Stock Repurchased During Period, Shares | (2,998) | |||||||
Treasury Stock, Shares, Acquired | 2,998 | |||||||
Excess tax benefits related to stock-based compensation | 1,645 | 1,645 | 0 | 0 | 0 | |||
Foreign currency translation | (1,161) | (1,161) | ||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 0 | |||||||
Dividends paid | (50,432) | (50,432) | ||||||
Balance at Nov. 01, 2014 | 995,876 | $ (86,938) | 902,440 | 206,528 | (24,993) | (1,161) | ||
Balance (in shares) at Nov. 01, 2014 | 80,448 | 7,733 | 3,036 | |||||
Balance at Jan. 31, 2015 | 1,011,120 | $ (86,938) | 908,679 | 220,826 | (24,993) | (6,454) | ||
Balance (in shares) at Jan. 31, 2015 | 80,666 | 7,733 | 3,036 | |||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||||
Net income | 124,271 | 124,271 | 0 | 0 | ||||
Stock-based compensation expense, before related tax effects | 9,768 | 9,768 | 0 | 0 | 0 | |||
Stock units granted | 969 | 969 | 0 | 0 | 0 | |||
Stock units granted (in shares) | 34 | |||||||
Exercise of stock options | 3,453 | 3,453 | 0 | 0 | 0 | |||
Exercise of stock options, net of settlement of taxes (in shares) | 266 | |||||||
Vesting of restricted stock units, net of settlement of taxes | (1,271) | (1,271) | 0 | 0 | 0 | |||
Vesting of restricted stock units, net of settlement of taxes (in shares) | 51 | |||||||
Stock Repurchased During Period, Value | (63,062) | $ (63,062) | ||||||
Stock Repurchased During Period, Shares | (2,140) | |||||||
Treasury Stock, Shares, Acquired | 2,140 | |||||||
Excess tax benefits related to stock-based compensation | 2,517 | 2,517 | 0 | 0 | 0 | |||
Foreign currency translation | (6,810) | (6,810) | ||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | (267) | (267) | ||||||
Dividends paid | (52,555) | (52,555) | ||||||
Balance at Oct. 31, 2015 | $ 1,028,133 | $ (150,000) | $ 924,115 | $ 292,542 | $ (24,993) | $ (13,531) | ||
Balance (in shares) at Oct. 31, 2015 | 78,877 | 7,733 | 5,176 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) | 9 Months Ended | |
Oct. 31, 2015 | Nov. 01, 2014 | |
Dividends paid (in dollars per share) | $ 0.6000 | $ 0.5625 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $ 42,000 | $ 0 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2015 | Nov. 01, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 124,271 | $ 122,521 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | 358 |
Income (Loss) from Continuing Operations Attributable to Parent | 124,271 | 122,163 |
Adjustments to reconcile net income (loss) to net cash and equivalents provided by operating activities from continuing operations: | ||
Depreciation and amortization | 54,837 | 50,762 |
Share-based compensation expense | 10,737 | 8,466 |
Deferred income taxes | (2,953) | (8,412) |
Loss from Town Shoes | 876 | (1,898) |
Loss on disposal of long-lived assets | 560 | 821 |
Impairment of Long-Lived Assets Held-for-use | 418 | 4,975 |
Amortization of investment discounts and premiums | 4,533 | 7,413 |
Excess tax benefits related to stock-based compensation | (2,517) | (1,645) |
Foreign Currency Transaction Gain (Loss), before Tax | (3,267) | 0 |
Change in working capital, other assets and liabilities: | ||
Accounts receivable, net | 6,143 | 36 |
Inventories | (70,407) | (88,492) |
Prepaid expenses and other current assets | 14,010 | 7,189 |
Accounts payable | (4,249) | 15,340 |
Accrued expenses | 7,576 | 10,244 |
Other | 4,747 | 4,529 |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | 145,315 | 131,491 |
Cash flows from investing activities: | ||
Cash paid for property and equipment | (79,852) | (72,399) |
Purchases of available-for-sale investments | (242,092) | (4,805) |
Purchases of held-to-maturity investments | 0 | (78,622) |
Sales of available-for-sale investments | 312,909 | 26,855 |
Maturities of held-to-maturity investments | 0 | 185,805 |
Increase (Decrease) in Restricted Cash | 6,780 | 102 |
Payments to Acquire Equity Method Investments | 203 | (25,322) |
Origination of Notes Receivable from Related Parties | (4,764) | (46,596) |
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | (6,816) | (14,982) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 3,453 | 3,280 |
Payments Related to Tax Withholding for Share-based Compensation | (1,271) | (1,649) |
Payments for Repurchase of Common Stock | (63,062) | (85,338) |
Dividends paid | (52,555) | (50,432) |
Excess tax benefits related to stock-based compensation | 2,517 | 1,645 |
Net Cash Provided by (Used in) Financing Activities, Continuing Operations | (110,918) | (132,494) |
Cash Provided by (Used in) Operating Activities, Discontinued Operations | 0 | 358 |
Net Cash Provided by (Used in) Discontinued Operations | 0 | 358 |
Effect of Exchange Rate on Cash and Cash Equivalents | 3,267 | 0 |
Net increase (decrease) in cash and equivalents from continuing operations | 27,581 | (15,985) |
Cash and equivalents, beginning of period | 59,171 | 112,021 |
Cash and equivalents, end of period | 90,019 | 96,394 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for income taxes | 69,144 | 62,554 |
Proceeds from construction and tenant allowances | 18,855 | 13,599 |
Non-cash operating, investing and financing activities: | ||
Balance of accounts payable and accrued expenses due to property and equipment purchases | $ 7,640 | $ 9,116 |
Business Operations and Basis o
Business Operations and Basis of Presentation | 9 Months Ended |
Oct. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Operations and Basis of Presentation | BUSINESS OPERATIONS AND BASIS OF PRESENTATION Business Operations- DSW Inc. and its wholly owned subsidiaries are herein referred to collectively as DSW Inc. or the “Company”. DSW refers to the DSW segment, which includes DSW stores and dsw.com. DSW Class A Common Shares are listed on the New York Stock Exchange under the ticker symbol “DSW”. DSW Class B Common Shares are not listed on a stock exchange but are exchangeable for Class A Common Shares at the election of the shareholder. DSW Inc. has two reportable segments: the DSW segment, which includes DSW stores and dsw.com, and the Affiliated Business Group (“ABG”) segment. DSW offers a wide assortment of brand name dress, casual and athletic footwear and accessories for women, men and kids. As of October 31, 2015 , DSW operated a total of 465 stores located in 42 states, the District of Columbia and Puerto Rico, and dsw.com. During the nine months ended October 31, 2015 , DSW opened 36 new DSW stores and closed two DSW stores. DSW Inc., through its ABG segment, also partners with three other retailers to help build and optimize their footwear businesses. As of October 31, 2015 , ABG supplied merchandise to 273 Stein Mart stores and Steinmart.com, 102 Gordmans stores and Gordmans.com, and one Frugal Fannie’s store. During the nine months ended October 31, 2015 , ABG added 13 new shoe departments and ceased operations in 8 shoe departments, which includes the closure of all four Yellow Box test stores. The closure of these Yellow Box stores resulted in store closing expenses (excluding asset impairment) of $0.9 million for the nine months ended October 31, 2015 . DSW Inc. also has an equity investment in Town Shoes Limited ("Town Shoes"). Town Shoes is the market leader in branded footwear in Canada. As of October 31, 2015 , Town Shoes operated 173 locations across Canada primarily under The Shoe Company, Shoe Warehouse and Town Shoes banners, an e-commerce site, as well as 13 DSW Designer Shoe Warehouse stores, operated under a licensing agreement. See Note 4 for further disclosure on the licensing agreement. Basis of Presentation- The accompanying unaudited condensed consolidated interim financial statements should be read in conjunction with DSW Inc.’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 26, 2015 (the “2014 Annual Report”). In the opinion of management, the unaudited condensed consolidated interim financial statements reflect all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly the condensed consolidated financial position, results of operations and cash flows for the periods presented. The condensed consolidated interim financial statements include the accounts of DSW Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. All amounts are in United States dollars ("USD"), unless otherwise noted. |
Investment in Town Shoes Limite
Investment in Town Shoes Limited | 9 Months Ended |
Oct. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | INVESTMENT IN TOWN SHOES On May 12, 2014, DSW Inc. acquired a 49.2% interest in Town Shoes, the largest branded footwear and accessories retailer in Canada, for $75.1 million Canadian dollars ("CAD") ( $68.9 million USD). As of October 31, 2015 , DSW Inc.'s ownership interest is 46.3% , and the dilution of the Company's ownership is due to Town Shoes' employee exercises of stock options. DSW Inc.'s stake provides 50% voting control and board representation equal to the co-investor's. Additionally, the Town Shoe co-investor holds the option to sell the remaining portion of the company in fiscal 2017 to DSW Inc., and for the subsequent two years. DSW Inc. holds the option to purchase the remaining portion of the company in fiscal 2018, and for the subsequent two years, if the Town Shoe co-investor has not exercised their put option. DSW Inc. purchased $100 million CAD during the first quarter of fiscal 2015 (approximately $79 million USD at purchase date) to take advantage of the strength of the dollar and in anticipation of funding the future purchase of the remaining interest in Town Shoes. The funds are also available to fund other business opportunities or return to U.S. operations, if needed. As this was a cash transaction, the gains or losses related to the purchase of the CAD are run through the statement of operations. During the first quarter of fiscal 2015, the Company recorded $3.3 million in foreign currency exchange gains related to the purchase of CAD within non-operating income. The Company invested the CAD in available-for-sale securities in the second quarter of fiscal 2015. As this was a non-cash transaction, the foreign exchange gain or loss is run through the consolidated balance sheet. During the nine months ended October 31, 2015 , the foreign currency exchange loss of $5.9 million is recorded within other comprehensive income. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Oct. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS A description of DSW's significant accounting policies is included in DSW's 2014 Annual Report. The following policies represent new or updates to significant accounting policies. ABG Sales and Revenue Recognition- ABG supplies footwear, under supply arrangements, to three other retailers. The Company closed all four test stores under the Yellow Box banner during fiscal 2015. DSW Inc. follows Accounting Standards Codification ("ASC") Topic 605, Revenue Recognition, in recognizing revenue for its affiliated business processes, specifically the principal/agent guidance in ASC 605-45. Sales for these affiliated businesses are net of returns through period end and exclude sales tax, and are included in net sales. Pursuant to the supply agreements between the Company and the ABG retailers (Stein Mart, Frugal Fannie's and Gordmans), the Company is the exclusive supplier of shoes, both in-store and online, at the ABG retailers. The Company assumes the risks and rewards of ownership for product at all in-store locations and online, including risk of loss for delivery, returns, shrink up to a certain percentage, and loss of inventory value. Furthermore, the Company is responsible for the footwear assortment, inventory fulfillment, and pricing at all locations and online. As the principal, the Company owns the merchandise and the fixtures, records sales of merchandise, net of returns and excluding sales tax at the point of sale to the end customer. As the agent, the retailers provide the sales associates and retail space. The Company pays a percentage of net sales as rent, which is included in cost of sales as occupancy expense. Non-operating (Expense) Income- Non-operating (expense) income includes remeasurement effects of foreign currency, as well as realized capital gains/losses related to the Company's investment portfolio. Income Taxes- In accordance with ASC Topic 740, Income Taxes , interest and penalties related to unrecognized income tax benefits may either be classified as income tax expense or another appropriate expense classification in the consolidated statements of operations. Previously, the Company had elected to classify interest expense or income related to income tax liabilities, when applicable, as part of interest expense or income in its consolidated statements of operations rather than as part of income tax expense. The Company classified income tax penalties as part of operating expenses in its statements of operations. Beginning in the first quarter of fiscal 2015, the Company elected to reflect interest and penalties from income taxes through the income tax provision in its statement of operations. The policy is consistent with the policies elected by many of the Company’s peers and thus will improve comparability of the Company’s financial statements. The new policy is more consistent with the way in which the Company manages the settlement of uncertain income tax positions as one overall amount inclusive of interest and penalties. The Company also believes that interest and penalties related to unrecognized income tax benefits are costs of managing taxes payable and thus, it will provide more meaningful information to investors by including only interest expense from debt financing activities within interest expense. This change in accounting policy was completed in accordance with ASC Topic 250, Accounting Changes and Error Corrections . Accordingly, the change in accounting policy has been applied retrospectively by adjusting the statement of operations for the prior periods presented. The change to historical periods was limited to classifications within the consolidated statements of operations and has no effect on net income or earnings per share. Three months ended Nine months ended November 1, 2014 November 1, 2014 (in thousands) As previously reported Effect of change As adjusted As previously reported Effect of change As adjusted Operating expenses $ (138,860 ) $ 140 $ (138,720 ) $ (384,208 ) $ 152 $ (384,056 ) Interest income, net 600 137 737 2,193 194 2,387 Income tax provision (31,792 ) (277 ) (32,069 ) (76,186 ) (346 ) (76,532 ) Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") and the International Accounting Standards Board ("IASB") released Accounting Standard Update ("ASU") 2014-09 on the recognition of revenue from contracts with customers that is designed to create greater comparability for financial statement users across industries and jurisdictions. Under the new standard, companies will recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the payment to which a company expects to be entitled in exchange for those goods or services. The standard also will require enhanced disclosures and provide more comprehensive guidance for transactions such as service revenue and contract modifications. The standard will take effect for public companies for annual reporting periods beginning after December 15, 2017, including interim reporting periods. The Company is currently evaluating the transition methods and the impact of the standard on its financial statements and disclosures. In April 2015, the FASB and the IASB released ASU 2015-03, simplifying the presentation of debt issuance costs. Under the new standard, debt issuance costs related to a recognized debt liability will be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The standard will take effect for public companies for annual reporting periods beginning after December 15, 2015, including interim reporting periods. There is currently no impact to the Company; however, the Company will monitor the new standard and determine if it is likely to be impacted in the future. In April 2015, the FASB released ASU 2015-05 to provide guidance to customers concerning whether a cloud computing arrangement includes a software license. Under this new standard, 1) if a cloud computing arrangement includes a software license, the software license element of the arrangement should be accounted for in a manner consistent with the acquisition of other software licenses, or 2) if the arrangement does not include a software license, the arrangement should be accounted for as a service contract. The standard will take effect for public companies for annual reporting periods beginning after December 15, 2015, including interim reporting periods. The Company intends to adopt the new standard when it takes effect and apply the new guidance prospectively. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Oct. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Schottenstein Affiliates- As of October 31, 2015 , the Schottenstein Affiliates (entities owned by or controlled by Jay L. Schottenstein, the executive chairman of the DSW Board of Directors, and members of his family) beneficially owned approximately 17% of outstanding DSW Common Shares representing approximately 49% of the combined voting power of outstanding DSW Common Shares. As of October 31, 2015 , the Schottenstein Affiliates beneficially owned 7.0 million Class A Common Shares and 7.7 million Class B Common Shares. The Company leases its fulfillment center and certain store locations owned by Schottenstein Affiliates and purchases services and products from Schottenstein Affiliates. Accounts receivable from and payable to affiliates principally result from commercial transactions or affiliate transactions and normally settle in the form of cash in 30 to 60 days. Related party balances are disclosed on the condensed consolidated balance sheets. License Agreement with Town Shoes- DSW Shoe Warehouse, Inc., a wholly-owned subsidiary of DSW Inc., licenses use of its trade name and trademark, DSW Designer Shoe Warehouse, to its equity investee, Town Shoes, for a sales-based royalty. The license is exclusive and non-transferable for use in Canada. Town Shoes pays DSW Inc. a percentage of net sales from its Canadian DSW stores on a monthly basis. The Canadian DSW stores operate in a manner similar to DSW stores in the United States and are required to maintain the standards and specifications that DSW uses to operate its own stores. DSW classifies the royalty fee as net sales. |
Earnings per Share and Sharehol
Earnings per Share and Shareholders' Equity | 9 Months Ended |
Oct. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per Share and Shareholders' Equity | EARNINGS PER SHARE AND SHAREHOLDERS' EQUITY Earnings per Share- Basic earnings per share is based on net income and a simple weighted average of common shares outstanding. Diluted earnings per share reflects the potential dilution of common shares adjusted for outstanding stock options, restricted stock units ("RSU") and performance-based restricted stock units ("PSU") calculated using the treasury stock method. The following table is a reconciliation of the number of shares used in the calculation of diluted earnings per share computations for the periods presented: Three months ended Nine months ended October 31, 2015 November 1, 2014 October 31, 2015 November 1, 2014 (in thousands) Weighted average shares outstanding 87,493 88,781 88,244 89,909 Assumed exercise of dilutive stock options 640 846 751 915 Assumed exercise of dilutive RSUs and PSUs 236 183 234 190 Number of shares for computation of diluted earnings per share 88,369 89,810 89,229 91,014 Options, RSUs and PSUs - The number of potential common shares that were not included in the computation of dilutive earnings per share because the effect would be anti-dilutive was approximately 2.1 million and 1.3 million for the three months ended October 31, 2015 and November 1, 2014 , respectively, and 1.8 million and 1.3 million for the nine months ended October 31, 2015 and November 1, 2014 , respectively. Shareholders' Equity- During the three and nine months ended October 31, 2015 , DSW repurchased 2.1 million Class A Common Shares at a cost of $63.1 million , completing its prior $150 million share repurchase authorization. On November 2, 2015, the Board of Directors approved an additional $200 million share repurchase program. The share repurchase program may be suspended, modified or discontinued at any time, and the Company has no obligation to repurchase any amount of its common shares under the program. Shares will be repurchased on the open market at times and in amounts considered appropriate by the Company based on price and market conditions. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Oct. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | STOCK-BASED COMPENSATION The DSW Inc. 2014 Long-Term Incentive Plan ("the 2014 Plan") provides for the issuance of equity awards to purchase up to 8.5 million DSW Common Shares. The Company began issuing shares under the 2014 Plan after the DSW Inc. 2005 Equity Incentive Plan expired in the second quarter of fiscal 2015. The 2014 Plan covers stock options, RSUs, PSUs and director stock units ("DSU"). Eligible recipients include key employees of DSW Inc. and affiliates, as well as directors. Options generally vest 20% per year on a cumulative basis. Options granted under the 2014 Plan generally remain exercisable for a period of ten years from the date of grant. Stock-Based Compensation Expense- The following table summarizes stock-based compensation expense: Nine months ended October 31, 2015 November 1, 2014 (in thousands) Stock Options $ 5,165 $ 4,606 Restricted Stock Units 1,986 1,724 Performance-Based Restricted Stock Units 2,617 931 Director Stock Units 969 1,205 Total $ 10,737 $ 8,466 Stock Options, RSUs, PSUs and DSUs- The following table summarizes all stock-based compensation activity: Nine months ended October 31, 2015 Stock Options RSUs PSUs DSUs (in thousands) Outstanding, beginning of period 3,156 320 173 360 Granted 933 133 149 34 Options exercised/units vested (265 ) (84 ) — (93 ) Forfeited (145 ) (28 ) (9 ) — Outstanding, end of period 3,679 341 313 301 Exercisable, end of period 1,929 — — — The following table summarizes the total compensation cost related to nonvested shares not yet recognized and the weighted average expense recognition period remaining (amounts in thousands): Nine months ended October 31, 2015 Stock Options RSUs PSUs Unrecognized compensation cost $ 15,614 $ 6,282 $ 6,931 Weighted average expense recognition period 2.1 years 1.8 years 2.0 years The following table illustrates the weighted average assumptions used in the Black-Scholes pricing model for DSW stock options granted in each of the periods presented: Nine months ended Assumptions: October 31, 2015 November 1, 2014 Risk-free interest rate 1.4% 1.8% Expected volatility of DSW Common Shares 37.9% 44.5% Expected option term 5.1 years 5.4 years Dividend yield 2.1% 2.3% Other Data: Weighted average grant date fair value $10.09 $11.82 Stock Appreciation Rights (“SARs”) - The 2014 Plan also covers the issuance of SARs. DSW Inc. entered into a SARs agreement with a non-employee on June 16, 2014, wherein DSW Inc. granted a total of 0.5 million SARs in two equal tranches with respect to DSW Class A Common Shares. On April 16, 2015, DSW Inc. provided notice of termination of the agreement with the non-employee resulting in an acceleration of the vesting of the SARs as outlined in the agreement, and the SARs remain exercisable until June 2016. DSW Inc. will value the SARs at fair value until the expiration or exercise date using a Black-Scholes model. During the three and nine months ended October 31, 2015 , DSW recorded a benefit of $2.5 million and a net benefit of $0.9 million , respectively. As of October 31, 2015 , the net liability was $0.9 million . The fair value of the SARs was estimated using the Black-Scholes pricing model with the following assumptions in each of the periods presented: Assumptions: October 31, 2015 January 31, 2015 November 1, 2014 Risk-free interest rate 0.2% 0.6% 0.7% Expected volatility of DSW Class A Common Shares 29.8% 24.9% 26.7% Expected term 0.6 years 2.3 years 2.6 years Expected dividend yield 2.4% 2.3% 2.3% |
Investments
Investments | 9 Months Ended |
Oct. 31, 2015 | |
Investments [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | INVESTMENTS For the available-for-sale bonds and term notes, the carrying value plus any unrealized gains or losses equals the fair value. Held-to-maturity investments were primarily corporate bonds, municipal bonds and municipal term notes and were held at amortized cost, which approximated fair value. Long-term investments have maturities longer than one year but shorter than three years. As of October 31, 2015 , DSW classifies all of its available-for-sale investments as long-term as management’s intention is to hold these investments for longer than one year. The Company accounts for its purchases and sales of investments on the trade date of the investment. The following table discloses the major categories of the Company's investments as of the dates presented: Short-term investments Long-term investments October 31, 2015 January 31, 2015 November 1, 2014 October 31, 2015 January 31, 2015 November 1, 2014 (in thousands) Available-for-sale securities: Carrying value $ — $ 17,147 — $ 306,792 — — Unrealized gains included in accumulated other comprehensive income — — — 207 — — Unrealized losses included in accumulated other comprehensive loss — — — (516 ) — — Held-to-maturity securities: Amortized cost — 154,054 $ 128,381 — $ 216,756 $ 202,259 Total investments $ — $ 171,201 $ 128,381 $ 306,483 $ 216,756 $ 202,259 Gross holding gains on held-to-maturity securities — $ 117 $ 81 — $ 371 $ 380 Gross holding losses on held-to-maturity securities — (50 ) (54 ) — (317 ) (284 ) Fair value of securities $ — $ 171,268 $ 128,408 $ 306,483 $ 216,810 $ 202,355 Change in Investment Classification- During the first quarter of fiscal 2015, the Company liquidated investments classified as held-to-maturity. As a result of the sale of held-to-maturity investments, the Company transferred its entire portfolio to the available-for-sale classification at fair value at the date of transfer. The Company determined that this transfer was a change in investment strategy. The unrealized holding gains or losses for the available-for-sale securities are reported in other comprehensive income. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Therefore, fair value is a market-based measurement based on assumptions of the market participants. As a basis for these assumptions, the Company classifies its fair value measurements under the following fair value hierarchy: • Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that are publicly accessible. Active markets have frequent transactions with enough volume to provide ongoing pricing information. • Level 2 inputs are other than level 1 inputs that are directly or indirectly observable. These can include unadjusted quoted prices for similar assets or liabilities in active markets, unadjusted quoted prices for identical assets or liabilities in inactive markets or other observable inputs. • Level 3 inputs are unobservable inputs. Financial Assets and Liabilities- The following table presents financial assets and liabilities at fair value as of the dates presented: October 31, 2015 January 31, 2015 November 1, 2014 Total Level 1 Level 2 Total Level 1 Level 2 Total Level 1 Level 2 Financial assets: (in thousands) Cash and equivalents $ 90,019 $ 90,019 — $ 59,171 $ 59,171 — $ 96,394 $ 96,394 — Short-term investments (a) — — — 171,268 — $ 171,268 128,408 — $ 128,408 Long-term investments (a) 306,483 4,392 $ 302,091 216,810 — 216,810 202,355 — 202,355 Note receivable from Town Shoes (b) 45,930 — 45,930 43,304 — 43,304 47,819 — 47,819 Total financial assets $ 442,432 $ 94,411 $ 348,021 $ 490,553 $ 59,171 $ 431,382 $ 474,976 $ 96,394 $ 378,582 Financial liabilities: Stock appreciation rights (c) $ 891 — $ 891 — — — — — — Total financial liabilities $ 891 — $ 891 — — — — — — (a) Short-term and long-term investments primarily include available-for-sale and held-to maturity investments, which are valued using a market-based approach using level 2 inputs such as prices of similar assets in active markets. (b) The shareholder note is valued based on similar assets in active markets. (c) Stock appreciation rights are valued using the Black-Scholes model. There are no financial assets or liabilities valued using level 3 inputs for the periods presented. Non-Financial Assets- The Company periodically evaluates the carrying amount of its long-lived assets, primarily property and equipment, and finite-lived intangible assets when events and circumstances warrant such a review to ascertain if any assets have been impaired. For the nine months ended October 31, 2015 , there was a full impairment related to one store in the ABG segment of $0.4 million recorded in cost of sales where the future expected cash flows will not recover the carrying amount of its long-lived assets. For the nine months ended November 1, 2014 , there were impairments of $5.0 million recorded in cost of sales related to seven stores in the DSW and ABG segments, where the future expected cash flows will not recover the carrying amount of their long-lived assets. For these seven stores, DSW recorded a full impairment, net of related tenant allowances. |
Debt Obligations
Debt Obligations | 9 Months Ended |
Oct. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt Obligations and Warrant Liabilities | DEBT OBLIGATIONS $50 Million Secured Credit Facility - On August 2, 2013 , the Company entered into a $50 million secured revolving credit agreement (the " Credit Facility "), which has a term of five years and will expire on July 31, 2018 . The Credit Facility may be increased by up to $100 million upon the Company's request and the increase would be subject to lender availability, DSW Inc.'s financial condition and compliance with covenants. The Credit Facility is secured by a lien on substantially all of DSW Inc.'s personal property assets and its subsidiaries with certain exclusions and may be used to provide funds for general corporate purposes, to provide for ongoing working capital requirements and to make permitted acquisitions. The Credit Facility contains restrictive covenants relating to management and the operation of DSW Inc.'s business. These covenants, among other things, limit or restrict DSW Inc.'s ability to grant liens on its assets, limit its ability to incur additional indebtedness, limit its ability to enter into transactions with affiliates and limit its ability to merge or consolidate with another entity. The Credit Facility also requires that DSW Inc. meet the minimum cash and investments requirement of $125 million , as defined in the Credit Facility . An additional covenant limits payments for capital expenditures to $200 million in any fiscal year. The Company paid $79.9 million for capital expenditures for the nine months ended October 31, 2015 . As of October 31, 2015 , January 31, 2015 and November 1, 2014 , the Company had no outstanding borrowings under the Credit Facility and had availability under the facility of $50.0 million . The Company also had no outstanding letters of credit under the Credit Facility as of October 31, 2015 , January 31, 2015 and November 1, 2014 . $50 Million Letter of Credit Agreement- Also on August 2, 2013 , the Company entered into a letter of credit agreement (the “Letter of Credit Agreement”). The Letter of Credit Agreement provides for the issuance of letters of credit up to $50 million , with a term of five years that will expire on August 2, 2018 . The facility for the issuance of letters of credit is secured by a cash collateral account containing cash in an amount equal to 103% of the face amount of any letter of credit extension ( 105% for extensions denominated in foreign currency) and is used for general corporate purposes. As of October 31, 2015 , January 31, 2015 and November 1, 2014 , the Company had $4.2 million , $9.3 million and $4.5 million , respectively, in outstanding letters of credit under the Letter of Credit Agreement, and $4.7 million , $11.5 million and $6.0 million , respectively, in restricted cash on deposit as collateral under the Letter of Credit Agreement. The restricted cash balance is recorded in prepaid expenses and other current assets on the condensed consolidated balance sheets. |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Oct. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | PROPERTY AND EQUIPMENT, NET The balance sheet caption "Property and equipment, net" was comprised of the following as of the dates presented: October 31, 2015 January 31, 2015 November 1, 2014 (in thousands) Land $ 1,110 $ 1,110 $ 1,110 Furniture, fixtures and equipment 486,279 437,745 428,319 Buildings, building and leasehold improvements 379,176 353,283 345,562 Total property and equipment 866,565 792,138 774,991 Accumulated depreciation and amortization (502,312 ) (454,235 ) (436,764 ) Property and equipment, net $ 364,253 $ 337,903 $ 338,227 |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Oct. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | ACCRUED EXPENSES The balance sheet caption "Accrued expenses" was comprised of the following as of the dates presented: October 31, 2015 January 31, 2015 November 1, 2014 (in thousands) Gift cards and merchandise credits $ 34,016 $ 40,313 $ 31,859 Compensation 14,712 11,317 14,199 Taxes 21,122 16,798 31,406 Customer loyalty program 13,455 14,788 15,718 Other (1) 34,590 29,964 32,703 Total accrued expenses $ 117,895 $ 113,180 $ 125,885 (1) Other is comprised of deferred revenue, guarantees, sales return allowance, stock appreciation rights (as of October 31, 2015 ) and various other accrued expenses, including advertising expenses, professional fees and rent. |
Non-Current Liabilities
Non-Current Liabilities | 9 Months Ended |
Oct. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Non-Current Liabilities | NON-CURRENT LIABILITIES The balance sheet caption "Non-current liabilities" was comprised of the following as of the dates presented: October 31, 2015 January 31, 2015 November 1, 2014 (in thousands) Construction and tenant allowances $ 88,257 $ 85,244 $ 85,363 Deferred rent 38,056 38,021 38,449 Other (1) 16,521 20,068 18,728 Total non-current liabilities $ 142,834 $ 143,333 $ 142,540 (1) Other is comprised of a reserve for a lease of an office facility assumed in the merger with Retail Ventures, Inc. ("RVI"), income tax reserves and deferred compensation. During the first quarter of fiscal 2015, the Company adjusted its assumptions related to the reserve for a lease of an office facility for future real estate taxes, sublease rental payments and executory costs. As of October 31, 2015 , the accrual related to the office facility was $8.6 million . |
Segment Reporting
Segment Reporting | 9 Months Ended |
Oct. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | SEGMENT REPORTING The reportable segments are the DSW segment, which includes DSW stores and dsw.com, and the ABG segment. The Company has identified such segments based on internal management reporting and responsibilities and measures segment profit as gross profit, which is defined as net sales less cost of sales. All operations are located in the United States and its territories. The goodwill balance of $25.9 million as of October 31, 2015 , January 31, 2015 and November 1, 2014 is recorded in the DSW segment. In order to reconcile to the condensed consolidated financial statements, the Company includes Other, which consists of assets, liabilities and expenses of the former RVI (see Note 15), the investment in Town Shoes, cash and assets of DSW's Canadian subsidiary (see Note 2). DSW segment ABG segment Other Total (in thousands) Three months ended October 31, 2015 Net sales $ 628,778 $ 36,742 — $ 665,520 Gross profit 190,903 8,063 — 198,966 Capital expenditures 27,990 371 — 28,361 Three months ended November 1, 2014 Net sales $ 632,774 $ 37,098 — $ 669,872 Gross profit 211,863 6,694 — 218,557 Capital expenditures 26,622 1,147 — 27,769 Nine months ended October 31, 2015 Net sales $ 1,833,572 $ 114,640 — $ 1,948,212 Gross profit 579,703 23,623 — 603,326 Capital expenditures 81,563 589 — 82,152 Nine months ended November 1, 2014 Net sales $ 1,745,454 $ 110,461 — $ 1,855,915 Gross profit 556,194 22,272 — 578,466 Capital expenditures 73,404 2,501 — 75,905 Total Assets As of October 31, 2015 $ 1,196,332 $ 117,772 $ 143,924 $ 1,458,028 As of January 31, 2015 1,263,577 104,897 69,769 1,438,243 As of November 1, 2014 1,279,852 97,346 73,034 1,450,232 |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES The provision for income taxes is based on the current estimate of the annual effective tax rate and is adjusted as necessary for quarterly events. The effective tax rate reflects the impact of federal, state and local, and foreign taxes, as well as tax on the income or loss from Town Shoes. The effective tax rate for the three and nine months ended October 31, 2015 was 39.4% and 38.3% , respectively. The effective tax rate for the three and nine months ended November 1, 2014 was 39.3% and 38.5% , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Legal Proceedings- The Company is involved in various legal proceedings that are incidental to the conduct of its business. Although it is not possible to predict with certainty the eventual outcome of any litigation, in the opinion of management, the amount of any potential liability with respect to current legal proceedings will not be material to results of operations or financial condition. As additional information becomes available, the Company will assess the potential liability related to its pending litigation and revise the estimates as needed. Merger with Retail Ventures, Inc. ("the Merger")- On May 26, 2011 , RVI merged with and into DSW MS LLC (“Merger Sub”), with Merger Sub surviving the Merger and continuing as a wholly owned subsidiary of DSW Inc. Upon the closing of the Merger, each outstanding RVI common share was converted into 0.435 DSW Class A Common Shares, unless the holder of each outstanding RVI common share properly and timely elected to receive a like number of DSW Class B Common Shares. As of the effective time of the Merger, a subsidiary of DSW Inc. assumed the obligations under RVI’s guarantees related to discontinued operations. DSW Inc. may become subject to various risks related to guarantees and in certain circumstances may be responsible for certain other liabilities related to these discontinued operations. In the first quarter of fiscal 2015, the Company recorded a $2.0 million benefit from the final distribution from the bankruptcy debtor's estates related to Filene's Basement's bankruptcy in 2011. Filene’s Basement- Following the Merger, a subsidiary of DSW Inc., Merger Sub, assumed RVI’s obligations under lease guarantees for three Filene’s Basement retail store locations for leases assumed by Syms Corp in its purchase of Filene’s Basement in fiscal 2009. The remaining guarantee is described in more detail below: Union Square, NY- RVI guaranteed Filene’s Basement’s obligations for the Union Square location when RVI owned Filene’s Basement, and the landlord at the Union Square location brought a lawsuit against Merger Sub in the Supreme Court of the State of New York seeking payment under a guarantee of the lease (the lease is scheduled to expire in 2024). On February 27, 2015, the parties jointly entered into a Stipulation and Settlement Agreement that provides for the settlement and release of the guaranty litigation and certain claims arising from the Filene's/Syms bankruptcy. The settlement approximated the accrual. Contractual Obligations- As of October 31, 2015 , the Company has entered into various construction commitments, including capital items to be purchased for projects that were under construction, or for which a lease has been signed. The Company's obligations under these commitments were $1.2 million as of October 31, 2015 . In addition, the Company has signed lease agreements for 23 new DSW store locations, expected to be opened in fiscal 2015 and 2016 with total annual rent of $6.2 million . In connection with the new lease agreements, the Company will receive a total of $8.5 million of construction and tenant allowance reimbursements for expenditures at these locations. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Oct. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS Dividends - On November 24, 2015 , DSW Inc.'s Board of Directors declared a quarterly cash dividend payment of $0.20 per share. The dividend will be paid on December 31, 2015 to shareholders of record at the close of business on December 18, 2015 . Share Repurchase Program- On November 2, 2015, the Board of Directors authorized the repurchase of an additional $200 million of DSW Common Shares under the Company's share repurchase program. |
Business Operations and Basis25
Business Operations and Basis of Presentation Business Operations and Basis of Presentation (Policies) | 9 Months Ended |
Oct. 31, 2015 | |
Business Operations and Basis of Presentation [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation- The accompanying unaudited condensed consolidated interim financial statements should be read in conjunction with DSW Inc.’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 26, 2015 (the “2014 Annual Report”). In the opinion of management, the unaudited condensed consolidated interim financial statements reflect all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly the condensed consolidated financial position, results of operations and cash flows for the periods presented. The condensed consolidated interim financial statements include the accounts of DSW Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. All amounts are in United States dollars ("USD"), unless otherwise noted. |
Significant Accounting Polici26
Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 31, 2015 | |
Accounting Policies [Abstract] | |
Revenue Recognition, Policy [Policy Text Block] | ABG Sales and Revenue Recognition- ABG supplies footwear, under supply arrangements, to three other retailers. The Company closed all four test stores under the Yellow Box banner during fiscal 2015. DSW Inc. follows Accounting Standards Codification ("ASC") Topic 605, Revenue Recognition, in recognizing revenue for its affiliated business processes, specifically the principal/agent guidance in ASC 605-45. Sales for these affiliated businesses are net of returns through period end and exclude sales tax, and are included in net sales. Pursuant to the supply agreements between the Company and the ABG retailers (Stein Mart, Frugal Fannie's and Gordmans), the Company is the exclusive supplier of shoes, both in-store and online, at the ABG retailers. The Company assumes the risks and rewards of ownership for product at all in-store locations and online, including risk of loss for delivery, returns, shrink up to a certain percentage, and loss of inventory value. Furthermore, the Company is responsible for the footwear assortment, inventory fulfillment, and pricing at all locations and online. As the principal, the Company owns the merchandise and the fixtures, records sales of merchandise, net of returns and excluding sales tax at the point of sale to the end customer. As the agent, the retailers provide the sales associates and retail space. The Company pays a percentage of net sales as rent, which is included in cost of sales as occupancy expense. |
Other Nonoperating Income and Expense [Text Block] | Non-operating (Expense) Income- Non-operating (expense) income includes remeasurement effects of foreign currency, as well as realized capital gains/losses related to the Company's investment portfolio. |
Reclassification, Policy [Policy Text Block] | Income Taxes- In accordance with ASC Topic 740, Income Taxes , interest and penalties related to unrecognized income tax benefits may either be classified as income tax expense or another appropriate expense classification in the consolidated statements of operations. Previously, the Company had elected to classify interest expense or income related to income tax liabilities, when applicable, as part of interest expense or income in its consolidated statements of operations rather than as part of income tax expense. The Company classified income tax penalties as part of operating expenses in its statements of operations. Beginning in the first quarter of fiscal 2015, the Company elected to reflect interest and penalties from income taxes through the income tax provision in its statement of operations. The policy is consistent with the policies elected by many of the Company’s peers and thus will improve comparability of the Company’s financial statements. The new policy is more consistent with the way in which the Company manages the settlement of uncertain income tax positions as one overall amount inclusive of interest and penalties. The Company also believes that interest and penalties related to unrecognized income tax benefits are costs of managing taxes payable and thus, it will provide more meaningful information to investors by including only interest expense from debt financing activities within interest expense. This change in accounting policy was completed in accordance with ASC Topic 250, Accounting Changes and Error Corrections . Accordingly, the change in accounting policy has been applied retrospectively by adjusting the statement of operations for the prior periods presented. The change to historical periods was limited to classifications within the consolidated statements of operations and has no effect on net income or earnings per share. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") and the International Accounting Standards Board ("IASB") released Accounting Standard Update ("ASU") 2014-09 on the recognition of revenue from contracts with customers that is designed to create greater comparability for financial statement users across industries and jurisdictions. Under the new standard, companies will recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the payment to which a company expects to be entitled in exchange for those goods or services. The standard also will require enhanced disclosures and provide more comprehensive guidance for transactions such as service revenue and contract modifications. The standard will take effect for public companies for annual reporting periods beginning after December 15, 2017, including interim reporting periods. The Company is currently evaluating the transition methods and the impact of the standard on its financial statements and disclosures. In April 2015, the FASB and the IASB released ASU 2015-03, simplifying the presentation of debt issuance costs. Under the new standard, debt issuance costs related to a recognized debt liability will be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The standard will take effect for public companies for annual reporting periods beginning after December 15, 2015, including interim reporting periods. There is currently no impact to the Company; however, the Company will monitor the new standard and determine if it is likely to be impacted in the future. In April 2015, the FASB released ASU 2015-05 to provide guidance to customers concerning whether a cloud computing arrangement includes a software license. Under this new standard, 1) if a cloud computing arrangement includes a software license, the software license element of the arrangement should be accounted for in a manner consistent with the acquisition of other software licenses, or 2) if the arrangement does not include a software license, the arrangement should be accounted for as a service contract. The standard will take effect for public companies for annual reporting periods beginning after December 15, 2015, including interim reporting periods. The Company intends to adopt the new standard when it takes effect and apply the new guidance prospectively. |
Earnings per Share and Shareh27
Earnings per Share and Shareholders' Equity Earnings per Share and Shareholders' Equity (Policies) | 9 Months Ended |
Oct. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Share- Basic earnings per share is based on net income and a simple weighted average of common shares outstanding. Diluted earnings per share reflects the potential dilution of common shares adjusted for outstanding stock options, restricted stock units ("RSU") and performance-based restricted stock units ("PSU") calculated using the treasury stock method. |
Stock-based Compensation Stock-
Stock-based Compensation Stock-based Compensation (Policies) | 9 Months Ended |
Oct. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation, Option and Incentive Plans, Director Policy [Policy Text Block] | The DSW Inc. 2014 Long-Term Incentive Plan ("the 2014 Plan") provides for the issuance of equity awards to purchase up to 8.5 million DSW Common Shares. The Company began issuing shares under the 2014 Plan after the DSW Inc. 2005 Equity Incentive Plan expired in the second quarter of fiscal 2015. The 2014 Plan covers stock options, RSUs, PSUs and director stock units ("DSU"). Eligible recipients include key employees of DSW Inc. and affiliates, as well as directors. Options generally vest 20% per year on a cumulative basis. Options granted under the 2014 Plan generally remain exercisable for a period of ten years from the date of grant. |
Investments Investments (Polici
Investments Investments (Policies) | 9 Months Ended |
Oct. 31, 2015 | |
Investments [Abstract] | |
Investment, Policy [Policy Text Block] | For the available-for-sale bonds and term notes, the carrying value plus any unrealized gains or losses equals the fair value. Held-to-maturity investments were primarily corporate bonds, municipal bonds and municipal term notes and were held at amortized cost, which approximated fair value. Long-term investments have maturities longer than one year but shorter than three years. As of October 31, 2015 , DSW classifies all of its available-for-sale investments as long-term as management’s intention is to hold these investments for longer than one year. The Company accounts for its purchases and sales of investments on the trade date of the investment. Change in Investment Classification- During the first quarter of fiscal 2015, the Company liquidated investments classified as held-to-maturity. As a result of the sale of held-to-maturity investments, the Company transferred its entire portfolio to the available-for-sale classification at fair value at the date of transfer. The Company determined that this transfer was a change in investment strategy. The unrealized holding gains or losses for the available-for-sale securities are reported in other comprehensive income. |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Policies) | 9 Months Ended |
Oct. 31, 2015 | |
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | |
Fair Value Measurement, Policy [Policy Text Block] | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Therefore, fair value is a market-based measurement based on assumptions of the market participants. As a basis for these assumptions, the Company classifies its fair value measurements under the following fair value hierarchy: • Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that are publicly accessible. Active markets have frequent transactions with enough volume to provide ongoing pricing information. • Level 2 inputs are other than level 1 inputs that are directly or indirectly observable. These can include unadjusted quoted prices for similar assets or liabilities in active markets, unadjusted quoted prices for identical assets or liabilities in inactive markets or other observable inputs. • Level 3 inputs are unobservable inputs. |
Segment Reporting (Policies)
Segment Reporting (Policies) | 9 Months Ended |
Oct. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting, Policy [Policy Text Block] | The Company has identified such segments based on internal management reporting and responsibilities and measures segment profit as gross profit, which is defined as net sales less cost of sales. |
Income Taxes (Policies)
Income Taxes (Policies) | 9 Months Ended |
Oct. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax, Policy [Policy Text Block] | The provision for income taxes is based on the current estimate of the annual effective tax rate and is adjusted as necessary for quarterly events. |
Significant Accounting Polici33
Significant Accounting Policies Significant Accounting Policies (Tables) | 9 Months Ended |
Nov. 01, 2014 | |
Accounting Policies [Abstract] | |
Accounting Changes [Text Block] | The change to historical periods was limited to classifications within the consolidated statements of operations and has no effect on net income or earnings per share. Three months ended Nine months ended November 1, 2014 November 1, 2014 (in thousands) As previously reported Effect of change As adjusted As previously reported Effect of change As adjusted Operating expenses $ (138,860 ) $ 140 $ (138,720 ) $ (384,208 ) $ 152 $ (384,056 ) Interest income, net 600 137 737 2,193 194 2,387 Income tax provision (31,792 ) (277 ) (32,069 ) (76,186 ) (346 ) (76,532 ) |
Earnings per Share and Shareh34
Earnings per Share and Shareholders' Equity (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Number of Shares Used in the Calculation of Diluted Earnings per Share | The following table is a reconciliation of the number of shares used in the calculation of diluted earnings per share computations for the periods presented: Three months ended Nine months ended October 31, 2015 November 1, 2014 October 31, 2015 November 1, 2014 (in thousands) Weighted average shares outstanding 87,493 88,781 88,244 89,909 Assumed exercise of dilutive stock options 640 846 751 915 Assumed exercise of dilutive RSUs and PSUs 236 183 234 190 Number of shares for computation of diluted earnings per share 88,369 89,810 89,229 91,014 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation Expense [Table Text Block] | The following table summarizes stock-based compensation expense: Nine months ended October 31, 2015 November 1, 2014 (in thousands) Stock Options $ 5,165 $ 4,606 Restricted Stock Units 1,986 1,724 Performance-Based Restricted Stock Units 2,617 931 Director Stock Units 969 1,205 Total $ 10,737 $ 8,466 |
Stock Option Plan Activity | The following table summarizes all stock-based compensation activity: Nine months ended October 31, 2015 Stock Options RSUs PSUs DSUs (in thousands) Outstanding, beginning of period 3,156 320 173 360 Granted 933 133 149 34 Options exercised/units vested (265 ) (84 ) — (93 ) Forfeited (145 ) (28 ) (9 ) — Outstanding, end of period 3,679 341 313 301 Exercisable, end of period 1,929 — — — |
Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block] | The following table summarizes the total compensation cost related to nonvested shares not yet recognized and the weighted average expense recognition period remaining (amounts in thousands): Nine months ended October 31, 2015 Stock Options RSUs PSUs Unrecognized compensation cost $ 15,614 $ 6,282 $ 6,931 Weighted average expense recognition period 2.1 years 1.8 years 2.0 years |
Weighted-average Assumptions Used for Options Granted | The following table illustrates the weighted average assumptions used in the Black-Scholes pricing model for DSW stock options granted in each of the periods presented: Nine months ended Assumptions: October 31, 2015 November 1, 2014 Risk-free interest rate 1.4% 1.8% Expected volatility of DSW Common Shares 37.9% 44.5% Expected option term 5.1 years 5.4 years Dividend yield 2.1% 2.3% Other Data: Weighted average grant date fair value $10.09 $11.82 |
Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity [Table Text Block] | The fair value of the SARs was estimated using the Black-Scholes pricing model with the following assumptions in each of the periods presented: Assumptions: October 31, 2015 January 31, 2015 November 1, 2014 Risk-free interest rate 0.2% 0.6% 0.7% Expected volatility of DSW Class A Common Shares 29.8% 24.9% 26.7% Expected term 0.6 years 2.3 years 2.6 years Expected dividend yield 2.4% 2.3% 2.3% |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Investments [Abstract] | |
Investments | The following table discloses the major categories of the Company's investments as of the dates presented: Short-term investments Long-term investments October 31, 2015 January 31, 2015 November 1, 2014 October 31, 2015 January 31, 2015 November 1, 2014 (in thousands) Available-for-sale securities: Carrying value $ — $ 17,147 — $ 306,792 — — Unrealized gains included in accumulated other comprehensive income — — — 207 — — Unrealized losses included in accumulated other comprehensive loss — — — (516 ) — — Held-to-maturity securities: Amortized cost — 154,054 $ 128,381 — $ 216,756 $ 202,259 Total investments $ — $ 171,201 $ 128,381 $ 306,483 $ 216,756 $ 202,259 Gross holding gains on held-to-maturity securities — $ 117 $ 81 — $ 371 $ 380 Gross holding losses on held-to-maturity securities — (50 ) (54 ) — (317 ) (284 ) Fair value of securities $ — $ 171,268 $ 128,408 $ 306,483 $ 216,810 $ 202,355 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents financial assets and liabilities at fair value as of the dates presented: October 31, 2015 January 31, 2015 November 1, 2014 Total Level 1 Level 2 Total Level 1 Level 2 Total Level 1 Level 2 Financial assets: (in thousands) Cash and equivalents $ 90,019 $ 90,019 — $ 59,171 $ 59,171 — $ 96,394 $ 96,394 — Short-term investments (a) — — — 171,268 — $ 171,268 128,408 — $ 128,408 Long-term investments (a) 306,483 4,392 $ 302,091 216,810 — 216,810 202,355 — 202,355 Note receivable from Town Shoes (b) 45,930 — 45,930 43,304 — 43,304 47,819 — 47,819 Total financial assets $ 442,432 $ 94,411 $ 348,021 $ 490,553 $ 59,171 $ 431,382 $ 474,976 $ 96,394 $ 378,582 Financial liabilities: Stock appreciation rights (c) $ 891 — $ 891 — — — — — — Total financial liabilities $ 891 — $ 891 — — — — — — |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | The balance sheet caption "Property and equipment, net" was comprised of the following as of the dates presented: October 31, 2015 January 31, 2015 November 1, 2014 (in thousands) Land $ 1,110 $ 1,110 $ 1,110 Furniture, fixtures and equipment 486,279 437,745 428,319 Buildings, building and leasehold improvements 379,176 353,283 345,562 Total property and equipment 866,565 792,138 774,991 Accumulated depreciation and amortization (502,312 ) (454,235 ) (436,764 ) Property and equipment, net $ 364,253 $ 337,903 $ 338,227 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | The balance sheet caption "Accrued expenses" was comprised of the following as of the dates presented: October 31, 2015 January 31, 2015 November 1, 2014 (in thousands) Gift cards and merchandise credits $ 34,016 $ 40,313 $ 31,859 Compensation 14,712 11,317 14,199 Taxes 21,122 16,798 31,406 Customer loyalty program 13,455 14,788 15,718 Other (1) 34,590 29,964 32,703 Total accrued expenses $ 117,895 $ 113,180 $ 125,885 |
Non-Current Liabilities(Tables)
Non-Current Liabilities(Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Non-current Liabilities | The balance sheet caption "Non-current liabilities" was comprised of the following as of the dates presented: October 31, 2015 January 31, 2015 November 1, 2014 (in thousands) Construction and tenant allowances $ 88,257 $ 85,244 $ 85,363 Deferred rent 38,056 38,021 38,449 Other (1) 16,521 20,068 18,728 Total non-current liabilities $ 142,834 $ 143,333 $ 142,540 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | DSW segment ABG segment Other Total (in thousands) Three months ended October 31, 2015 Net sales $ 628,778 $ 36,742 — $ 665,520 Gross profit 190,903 8,063 — 198,966 Capital expenditures 27,990 371 — 28,361 Three months ended November 1, 2014 Net sales $ 632,774 $ 37,098 — $ 669,872 Gross profit 211,863 6,694 — 218,557 Capital expenditures 26,622 1,147 — 27,769 Nine months ended October 31, 2015 Net sales $ 1,833,572 $ 114,640 — $ 1,948,212 Gross profit 579,703 23,623 — 603,326 Capital expenditures 81,563 589 — 82,152 Nine months ended November 1, 2014 Net sales $ 1,745,454 $ 110,461 — $ 1,855,915 Gross profit 556,194 22,272 — 578,466 Capital expenditures 73,404 2,501 — 75,905 Total Assets As of October 31, 2015 $ 1,196,332 $ 117,772 $ 143,924 $ 1,458,028 As of January 31, 2015 1,263,577 104,897 69,769 1,438,243 As of November 1, 2014 1,279,852 97,346 73,034 1,450,232 |
Business Operations Store Data
Business Operations Store Data (Details) $ in Millions | 9 Months Ended |
Oct. 31, 2015USD ($) | |
Schedule of Stores Supplied With Merchandise [Line Items] | |
Number of Reportable Segments | 2 |
Affiliated Business Group [Abstract] | |
Number of retailers operated as leased departments | 3 |
Number of new leased departments added | 13 |
Number of leased departments ceased | 8 |
DSW Segment [Abstract] | |
Number of States in which Entity Operates | 42 |
Number of Stores | 465 |
Number of new stores opened | 36 |
number of new stores closed | 2 |
Stein Mart Stores [Member] | |
Affiliated Business Group [Abstract] | |
Number of stores supplied by the entity | 273 |
Gordmans Stores [Member] | |
Affiliated Business Group [Abstract] | |
Number of stores supplied by the entity | 102 |
Frugal Fannie's Stores [Member] | |
Affiliated Business Group [Abstract] | |
Number of stores supplied by the entity | 1 |
Yellow Box [Member] | |
Affiliated Business Group [Abstract] | |
Other Expenses | $ 0.9 |
Town [Member] | |
Affiliated Business Group [Abstract] | |
Number of stores supplied by the entity | 173 |
Town DSW [Member] | |
Affiliated Business Group [Abstract] | |
Number of stores supplied by the entity | 13 |
Investment in Town Shoes Limi43
Investment in Town Shoes Limited (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2015 | May. 02, 2015 | Nov. 01, 2014 | Oct. 31, 2015 | Nov. 01, 2014 | May. 09, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | ||||||
Town Shoe Acquisition, Purchase Price for Ownership Interest (CAD) | $ 75,100 | |||||
Town Shoe Acquisition, Purchase Price for Ownership Interest (USD) | $ 68,900 | |||||
Town Shoe Acquisition, Ownership Interest Acquired | 46.30% | 46.30% | 49.20% | |||
Town Shoe Acquisition, Voting Control Interest Acquired | 50.00% | |||||
Foreign Currency Purchase (CAD) | $ 100,000 | $ 100,000 | ||||
Foreign Currency Purchase (USD) | 79,000 | 79,000 | ||||
Nonoperating Income (Expense) | (107) | $ 3,300 | $ 0 | $ 3,198 | $ 0 | |
Foreign Currency Transaction Gain (Loss), Unrealized | $ 5,900 |
Significant Accounting Polici44
Significant Accounting Policies Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Nov. 01, 2014 | Oct. 31, 2015 | Nov. 01, 2014 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Operating expenses | $ (135,637) | $ (138,720) | $ (406,844) | $ (384,056) |
Interest Income (Expense), Net | 952 | 737 | 2,624 | 2,387 |
Income tax provision | $ (25,575) | (32,069) | $ (77,157) | (76,532) |
Unrecognized Tax Benefit on Interest and Penalties [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Operating expenses | 140 | 152 | ||
Interest Income (Expense), Net | 137 | 194 | ||
Income tax provision | (277) | (346) | ||
Scenario, Previously Reported [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Operating expenses | (138,860) | (384,208) | ||
Interest Income (Expense), Net | 600 | 2,193 | ||
Income tax provision | (31,792) | (76,186) | ||
Restatement Adjustment [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Operating expenses | (138,720) | (384,056) | ||
Interest Income (Expense), Net | 737 | 2,387 | ||
Income tax provision | $ (32,069) | $ (76,532) |
Related Party Transactions (Det
Related Party Transactions (Details) shares in Millions | Oct. 31, 2015shares |
Schottenstein Affiliates [Abstract] | |
Related party transaction Outstanding common shares owned (in hundredths) | 17.00% |
Related party transaction Combined voting power of outstanding common shares (in hundredths) | 49.00% |
Class A Common Shares | |
Schottenstein Affiliates [Abstract] | |
Related Party Transaction, Number of shares owned by related party (in shares) | 7 |
Class B Common Shares | |
Schottenstein Affiliates [Abstract] | |
Related Party Transaction, Number of shares owned by related party (in shares) | 7.7 |
Earnings per Share and Shareh46
Earnings per Share and Shareholders' Equity Calculation of Earnings per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Nov. 01, 2014 | Oct. 31, 2015 | Nov. 01, 2014 | |
Reconciliation of the number of shares used in the calculation of diluted earnings (loss) per share [Abstract] | ||||
Basic shares | 87,493 | 88,781 | 88,244 | 89,909 |
Assumed exercise of dilutive stock options | 640 | 846 | 751 | 915 |
Assumed exercise of dilutive RSUs and PSUs | 236 | 183 | 234 | 190 |
Diluted shares | 88,369 | 89,810 | 89,229 | 91,014 |
Earnings per Share and Shareh47
Earnings per Share and Shareholders' Equity Anti-Dilutive Securities (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Nov. 01, 2014 | Oct. 31, 2015 | Nov. 01, 2014 | |
Options, RSUs and PSUs [Member] | ||||
Diluted earnings per share [Abstract] | ||||
Securities outstanding not included in computation of diluted earnings per share | 2.1 | 1.3 | 1.8 | 1.3 |
Earnings per Share and Shareh48
Earnings per Share and Shareholders' Equity Shareholders' Equity (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2015 | Nov. 01, 2014 | |
Shareholders' Equity [Abstract] | |||
Stock Repurchased During Period, Shares | 2.1 | ||
Stock Repurchased During Period, Value | $ 63,062 | $ 85,338 | |
Stock Repurchase Program, Authorized Amount | $ 150,000 | 150,000 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 200,000 | $ 200,000 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Oct. 31, 2015 | Nov. 01, 2014 | |
DSW Stock-Based Compensation Plans [Abstract] | |||||
Annual vesting percentage (in hundredths) | 20.00% | ||||
Additional Disclosures [Abstract] | |||||
Share-based compensation expense | $ 10,737 | $ 8,466 | |||
Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 15,614 | $ 15,614 | |||
Stock Option Activity [Roll Forward] | |||||
Outstanding, beginning of period (in shares) | 3,156 | ||||
Granted | 933 | ||||
Exercised | (265) | ||||
Forfeited | (145) | ||||
Outstanding, end of period (in shares) | 3,679 | 3,156 | 3,679 | ||
Exercisable, end of period (in shares) | 1,929 | 1,929 | |||
Additional Disclosures [Abstract] | |||||
Share-based compensation expense | $ 5,165 | $ 4,606 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||
Risk-free interest rate | 1.40% | 1.80% | |||
Expected volatility of DSW Common Shares | 37.90% | 44.50% | |||
Expected option term | 5 years 1 month 4 days | 5 years 4 months 18 days | |||
Dividend yield | 2.10% | 2.30% | |||
Weighted average grant date fair value (in dollars per share) | $ 10.09 | $ 11.82 | |||
Equity instruments other than options [Roll forward] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 1 month | ||||
Stock Options [Member] | |||||
Additional Disclosures [Abstract] | |||||
Share-based compensation expense | $ 2,500 | $ 900 | |||
Employee Service Share-based Compensation, Cash Flow Effect, Cash Used to Settle Awards | $ 900 | 900 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||
Risk-free interest rate | 0.20% | 0.60% | 0.70% | ||
Expected volatility of DSW Common Shares | 29.80% | 24.90% | 26.70% | ||
Expected option term | 6 months 24 days | 2 years 3 months 18 days | 2 years 7 months 18 days | ||
Dividend yield | 2.40% | 2.30% | 2.30% | ||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 6,282 | $ 6,282 | |||
Stock Option Activity [Roll Forward] | |||||
Outstanding, beginning of period (in shares) | 320 | ||||
Granted | 133 | ||||
Exercised | (84) | ||||
Forfeited | (28) | ||||
Outstanding, end of period (in shares) | 341 | 320 | 341 | ||
Exercisable, end of period (in shares) | 0 | 0 | |||
Additional Disclosures [Abstract] | |||||
Share-based compensation expense | $ 1,986 | $ 1,724 | |||
Equity instruments other than options [Roll forward] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 8 months 48 days | ||||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 6,931 | $ 6,931 | |||
Stock Option Activity [Roll Forward] | |||||
Outstanding, beginning of period (in shares) | 173 | ||||
Granted | 149 | ||||
Exercised | 0 | ||||
Forfeited | (9) | ||||
Outstanding, end of period (in shares) | 313 | 173 | 313 | ||
Exercisable, end of period (in shares) | 0 | 0 | |||
Additional Disclosures [Abstract] | |||||
Share-based compensation expense | $ 2,617 | 931 | |||
Equity instruments other than options [Roll forward] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years | ||||
Director Stock Units [Member] | |||||
Stock Option Activity [Roll Forward] | |||||
Outstanding, beginning of period (in shares) | 360 | ||||
Granted | 34 | ||||
Exercised | (93) | ||||
Forfeited | 0 | ||||
Outstanding, end of period (in shares) | 301 | 360 | 301 | ||
Exercisable, end of period (in shares) | 0 | 0 | |||
Additional Disclosures [Abstract] | |||||
Share-based compensation expense | $ 969 | $ 1,205 | |||
Stock Compensation Plan [Member] | |||||
DSW Stock-Based Compensation Plans [Abstract] | |||||
Number of shares authorized (in shares) | 8,500 | 8,500 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 31, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | |
Schedule of Investments, Reported Amounts, by Category [Line Items] | |||
Short-term investments | $ 0 | $ 171,201 | $ 128,381 |
Long-term investments | 306,483 | 216,756 | 202,259 |
Current available for sale Securities Unrecognized Holding Gain | 0 | 0 | 0 |
Long-Term Available for Sale Securities Unrecognized Holding Gain | 207 | 0 | 0 |
Current Available for Sale Securities Unrecognized Holding Loss | 0 | 0 | 0 |
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss), Net of Tax | (516) | 0 | 0 |
Investment disclosure [Abstract] | |||
Gross unrealized gains on short-term investments | 0 | 117 | 81 |
Current Held to Maturity Securities Unrecognized Holding Loss | 0 | (50) | (54) |
Gross unrealized gains from long-term held-to-maturity investments | 0 | 371 | 380 |
Gross unrealized losses on long-term held-to-maturity investments | 0 | (317) | (284) |
Short-term investments (a) | 0 | 171,268 | 128,408 |
Available-for-sale Securities, Noncurrent | 306,483 | ||
Long-term investments (a) | 216,810 | 202,355 | |
Carrying value | Available-for-sale Securities [Member] | |||
Schedule of Investments, Reported Amounts, by Category [Line Items] | |||
Short-term investments | 0 | 17,147 | 0 |
Long-term investments | 306,792 | 0 | 0 |
Amortized cost | Held-to-maturity Securities [Member] | |||
Schedule of Investments, Reported Amounts, by Category [Line Items] | |||
Short-term investments | 0 | 154,054 | 128,381 |
Long-term investments | $ 0 | $ 216,756 | $ 202,259 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 9 Months Ended | ||
Oct. 31, 2015 | Nov. 01, 2014 | Jan. 31, 2015 | |
Assets: | |||
Cash and equivalents | $ 90,019,000 | $ 96,394,000 | $ 59,171,000 |
Short-term investments (a) | 0 | 128,408,000 | 171,268,000 |
Available-for-sale Securities, Noncurrent | 306,483,000 | ||
Long-term investments (a) | 202,355,000 | 216,810,000 | |
Note receivable from Town Shoes (b) | 45,930,000 | 47,819,000 | 43,304,000 |
Total assets | 442,432,000 | 474,976,000 | 490,553,000 |
Other Liabilities, Fair Value Disclosure | 891,000 | 0 | 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 891,000 | 0 | 0 |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | |||
Impairment of Long-Lived Assets Held-for-use | 418,000 | 4,975,000 | |
Level 1 [Member] | |||
Assets: | |||
Cash and equivalents | 90,019,000 | 96,394,000 | 59,171,000 |
Short-term investments (a) | 0 | 0 | 0 |
Available-for-sale Securities, Noncurrent | 4,392,000 | ||
Long-term investments (a) | 0 | 0 | |
Note receivable from Town Shoes (b) | 0 | 0 | 0 |
Total assets | 94,411,000 | 96,394,000 | 59,171,000 |
Other Liabilities, Fair Value Disclosure | 0 | 0 | 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | 0 |
Level 2 [Member] | |||
Assets: | |||
Cash and equivalents | 0 | 0 | 0 |
Short-term investments (a) | 0 | 128,408,000 | 171,268,000 |
Available-for-sale Securities, Noncurrent | 302,091,000 | ||
Long-term investments (a) | 202,355,000 | 216,810,000 | |
Note receivable from Town Shoes (b) | 45,930,000 | 47,819,000 | 43,304,000 |
Total assets | 348,021,000 | 378,582,000 | 431,382,000 |
Other Liabilities, Fair Value Disclosure | 891,000 | 0 | 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 891,000 | $ 0 | $ 0 |
Credit Facility (Details)
Credit Facility (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2015 | Nov. 01, 2014 | |
Credit Facility [Abstract] | ||
Initiation date | Aug. 2, 2013 | |
Line of Credit Facility, Expiration Date | Jul. 31, 2018 | |
Line of Credit Facility, Covenant Terms | The Credit Facility contains restrictive covenants relating to management and the operation of DSW Inc.'s business. These covenants, among other things, limit or restrict DSW Inc.'s ability to grant liens on its assets, limit its ability to incur additional indebtedness, limit its ability to enter into transactions with affiliates and limit its ability to merge or consolidate with another entity. | |
Cash and investment requirement | $ 125,000 | |
Limitation of capital expenditures | 200,000 | |
Payments to Acquire Property, Plant, and Equipment | (79,852) | $ (72,399) |
Credit Facility, available capacity | 50,000 | |
Line of Credit Facility, Maximum Borrowing Capacity | 50,000 | |
Line of Credit Facility, Additional Borrowing Capacity | $ 100,000 |
Letter of Credit Agreement (Det
Letter of Credit Agreement (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Oct. 31, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | |
Letter of Credit [Line Items] | |||
Letters of Credit Outstanding, Amount | $ 4.2 | $ 9.3 | $ 4.5 |
Restricted Cash and Investments, Current | $ 4.7 | $ 11.5 | $ 6 |
Letter of Credit Agreement, initiation date | Aug. 2, 2013 | ||
Letter of Credit Agreement, Maximum Borrowing Capacity | $ 50 | ||
Letter of Credit Agreement, expiration date | Aug. 2, 2018 | ||
Letter of Credit Agreement, cash collateral account requirement | 103.00% | ||
Letter of Credit Agreement, cash collateral account (foreign currency) | 105.00% |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 | Nov. 01, 2014 |
Property and equipment [Abstract]: | |||
Land | $ 1,110 | $ 1,110 | $ 1,110 |
Furniture, fixtures and equipment | 486,279 | 437,745 | 428,319 |
Buildings, building and leasehold improvements | 379,176 | 353,283 | 345,562 |
Total property and equipment | 866,565 | 792,138 | 774,991 |
Accumulated depreciation and amortization | (502,312) | (454,235) | (436,764) |
Property and equipment, net | $ 364,253 | $ 337,903 | $ 338,227 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 | Nov. 01, 2014 |
Payables and Accruals [Line Items] | |||
Gift cards and merchandise credits | $ 34,016 | $ 40,313 | $ 31,859 |
Compensation | 14,712 | 11,317 | 14,199 |
Taxes | 21,122 | 16,798 | 31,406 |
Customer loyalty program | 13,455 | 14,788 | 15,718 |
Other (1) | 34,590 | 29,964 | 32,703 |
Total accrued expenses | $ 117,895 | $ 113,180 | $ 125,885 |
Non-Current Liabilities (Detail
Non-Current Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 | Nov. 01, 2014 |
Other Liabilities Disclosure [Abstract] | |||
Construction and tenant allowances | $ 88,257 | $ 85,244 | $ 85,363 |
Deferred rent | 38,056 | 38,021 | 38,449 |
Other (1) | 16,521 | 20,068 | 18,728 |
Total non-current liabilities | 142,834 | $ 143,333 | $ 142,540 |
Contractual Obligation | $ 8,600 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2015USD ($) | Nov. 01, 2014USD ($) | Oct. 31, 2015USD ($) | Nov. 01, 2014USD ($) | Jan. 31, 2015USD ($) | |
Segment information [Abstract] | |||||
Net sales | $ 665,520 | $ 669,872 | $ 1,948,212 | $ 1,855,915 | |
Gross profit | 198,966 | 218,557 | 603,326 | 578,466 | |
Capital Expenditures | 28,361 | 27,769 | 82,152 | 75,905 | |
Total assets | 1,458,028 | 1,450,232 | 1,458,028 | 1,450,232 | $ 1,438,243 |
Goodwill | 25,899 | 25,899 | $ 25,899 | 25,899 | 25,899 |
Number of Reportable Segments | 2 | ||||
Affiliated Business Group segment [Member] | |||||
Segment information [Abstract] | |||||
Net sales | 36,742 | 37,098 | $ 114,640 | 110,461 | |
Gross profit | 8,063 | 6,694 | 23,623 | 22,272 | |
Capital Expenditures | 371 | 1,147 | 589 | 2,501 | |
Total assets | 117,772 | 97,346 | 117,772 | 97,346 | 104,897 |
Other [Member] | |||||
Segment information [Abstract] | |||||
Net sales | 0 | 0 | 0 | 0 | |
Gross profit | 0 | 0 | 0 | 0 | |
Capital Expenditures | 0 | 0 | 0 | 0 | |
Total assets | 143,924 | 73,034 | 143,924 | 73,034 | 69,769 |
DSW [Member] | |||||
Segment information [Abstract] | |||||
Net sales | 628,778 | 632,774 | 1,833,572 | 1,745,454 | |
Gross profit | 190,903 | 211,863 | 579,703 | 556,194 | |
Capital Expenditures | 27,990 | 26,622 | 81,563 | 73,404 | |
Total assets | $ 1,196,332 | $ 1,279,852 | $ 1,196,332 | $ 1,279,852 | $ 1,263,577 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Nov. 01, 2014 | Oct. 31, 2015 | Nov. 01, 2014 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
Effective Income Tax Rate, Continuing Operations | 39.40% | 39.30% | 38.30% | 38.50% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 12 Months Ended | |
Jan. 28, 2012shares | Oct. 31, 2015USD ($) | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Stockholders Equity Reverse Stock Split Conversion Ratio | shares | 0.435 | |
Contractual Obligations [Abstract] | ||
Purchase Commitment, Remaining Minimum Amount Committed | $ 1.2 | |
New store locations for which lease agreements signed, number | 23 | |
Operating Leases, future minimum payments due, current, new stores | $ 6.2 | |
Incentive to Lessee | $ 8.5 |
Commitments and Contingencies G
Commitments and Contingencies Guarantees Related to Discontinued Operations (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
May. 02, 2015USD ($) | Jan. 28, 2012shares | |
Property Subject to or Available for Operating Lease [Line Items] | ||
Stockholders Equity Reverse Stock Split Conversion Ratio | shares | 0.435 | |
Receipt of cash from bankruptcy claim | $ 2 |
Subsequent Events Dividend Decl
Subsequent Events Dividend Declaration (Details) | 9 Months Ended |
Oct. 31, 2015$ / shares | |
Subsequent Events [Abstract] | |
Common Stock, Dividends, Per Share, Declared | $ 0.20 |
Dividends Payable, Date to be Paid | Dec. 31, 2015 |
Dividends Payable, Date of Record | Dec. 18, 2015 |
Subsequent Events Share Repurch
Subsequent Events Share Repurchase Program (Details) $ in Millions | Oct. 31, 2015USD ($) |
Subsequent Event [Line Items] | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 200 |
Stock Repurchase Program, Authorized Amount | $ 150 |