This other American shoe retail chain reported an increase in comparable store sales of 5.6 percent for the fourth quarter ended Jan. 29, which came on top of a 14.9 percent gain in the same quarter a year ago. Accessories and men's shoes had the strongest increases, followed by women's shoes and athletic footwear. Sales of toning shoes fell by nearly 75 percent.
For the full financial year, same-store sales were up by 8.3 percent and sales per square foot reached $243, a level 24 percent higher than in 2008. Total revenues grew by 11.1 percent, breaking through the $2 billion mark to reach a level of $2,024 million. Merchandise margins went up by 1.2 percentage points to 32.3 percent. The share of private labels rose to 10 percent from 7 percent the year before, and the company is still aiming for a ratio of 15 percent over the next three to four years.
DSW's adjusted net income improved to $136.1 million in the last year from $107.6 million the year before. An additional 9 percent improvement should follow this year as the management expects comparable store sales to rise by between 2 and 4 percent.
The company plans to accelerate its expansion by opening between 35 and 40 new stores, including its first store in Puerto Rico. It is investing heavily in the New York area, where it opened a few days ago a door on 34th Street, in the heart of Manhattan's Fashion District. Another one will follow in the early summer at 79th Street and Broadway. DSW will also introduce a drop-ship system for its dsw.com e-commerce platform.