The shoe biz has walked a hard road lately, but that's no consolation to DSW
Fourth-quarter net income at the discount shoe warehouse retailer plunged 94% to $1.1 million, or $0.02 per share. Total sales grew 1.1% to $332.5 million, with last year's fourth quarter incorporating an extra week. Same-store sales decreased by 1.7%, compared to a 1% increase in comps last year this time.
This was one heck of a short earnings release. Beyond the basic verbiage about DSW's results, it only included the company's income statement. Investors will have to wait for its SEC Form 10-K to peek at DSW's balance sheet and cash flow statement.
DSW also said that given "the current economic uncertainty," it's not providing full-year guidance. However, it did provide expectations for the first half of this year: negative same-store sales, and a year-over-year drop in profits.
DSW's troubles aren't exactly surprising, though, given the many footwear stocks that have cooled down lately. (Have we suddenly become a nation of barefoot hippies?) Crocs
DSW peddles discounted shoes from various brands. Although some of the stocks named above may have relied on faddishness, it seems like a logical question to ask if cash-strapped consumers will be willing to shell out for new, fashionable shoes during an economic downturn. Despite my "hippie" joke, I somehow doubt that most people who hold off on buying shoes will be cavorting barefoot.
DSW shares had fallen about 23% at my last check; it missed analysts' expectations by $0.04 per share, and of course the tidings about 2008 were absolutely no consolation. (Shares of Retail Ventures