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Should You Buy DSW, Inc. After Shares Collapse 27%?

Shares of DSW, (NYSE: DSW  ) , the discount retailer of designer shoes, fell a whopping 27% on May 28, 2014 following disappointing quarterly results which were released before the market open. Unfortunately for current shareholders the company disappointed on nearly every metric. Earnings per share came in at $0.42 a full $0.06 short of the consensus estimate of $0.48. Revenues at the retailer came up short by a margin of 4% coming in at $599 million versus estimates of approximately $622 million. Adding insult to injury the company guided down its estimates for the full year, now expecting earnings per share to fall within the range of $1.45 to $1.60 per share which compares poorly with the $1.90 per share originally expected. According to DWS's management, the reason for the poor performance was a mix of unusually bad winter weather (as cited by many other restaurants and retailers) and an tough competitive landscape. 

Despite these issues, DSW's business and growth plans remain intact. As Motley Fool Analyst Sean O'Reilly explains, for long-term Foolish investors willing to step up when the situation appears dire owning shares in DSW may prove rewarding in the years ahead.

Will this stock be your next multi-bagger?
Give us five minutes and we'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks one stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303% over the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

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8/28/2015 1:22 PM
DSW $28.92 Down -0.25 -0.86%
DSW, Inc. CAPS Rating: ****