DSW reported sales of $601.4 million for the first quarter ended May 4, 2013, up 7.7 percent over last year's first quarter. However, comparable store sales decreased by 2.4 percent as compared to the quarter ended April 28, 2012, when they had increased by 7.6 percent. The company said that a strong sales rebound in the final four weeks of the quarter reduced its comparable sales decline and allowed it to exit the quarter with well positioned inventories.
Net income for the U.S. footwear and accessories retailer in the first quarter was $34.5 million, including a net charge of $11.4 million, due mostly to an inventory valuation reserve. This compares to net income in the first quarter of 2012 of $39.9 million, which included a non-cash charge of $4.3 million. Excluding these charges, net earnings increased by 4.1 percent to $45.9 million.
For the full year ending Feb. 1, 2014 the company now expects comparable sales to grow in the 0 to 2 percent range. The board of directors of DSW has approved a 39 percent increase in quarterly dividends, reflecting confidence in the long-term growth potential of the company's business.