Overview
- Adjusted EPS came in at $0.38 versus roughly $0.18 expected, with net income up 40% to $18.2 million as net sales fell 3.2% to $752.4 million and comparable sales declined 2.4%.
- Shares jumped nearly 48.5% to close at $7.20 after intraday and premarket gains were reported, with Benzinga noting elevated short interest of about 8.10 million shares, or roughly 57% of float.
- Gross profit rose to $339.6 million and gross margin improved to 45.1% from 43.0% a year ago, while consolidated operating profit increased 87% to $42.7 million.
- Full-year outlook calls for net sales down 3% to 5% and adjusted operating profit of $50 million to $55 million; the company ended the quarter with about $51.4 million in cash, long-term debt near $463.1 million, and declared a $0.05 dividend payable Dec. 19.
- Management cited traction from the 'Let Us Surprise You' campaign, a successful reimagined DSW store in Framingham with rollouts planned for New York’s Union Square and Columbus’s Easton, stronger boot and improving athletic trends, and a 15% increase in digital orders fulfilled through its logistics center.