In the three months ended on Feb. 2, 2019, DSW's total revenues jumped by 15.9 percent from the year-ago period to $838.6 million. Comparable store sales climbed by 5.4 percent. The management attributed these results to the relaunch of the DSW loyalty program, its product assortment and its strategy to invest in good talent and marketing. In addition, it pointed to the successful nationwide roll-out of DSW Kids, whose comparable store sales jumped by 87 percent. Comparable sales rose by 5 percent for women, while men's were down by 2 percent. Footwear comparable sales progressed by 5 percent, while accessories were up by 6 percent.
In the U.S. retail segment, which was previously presented as the DSW division of the group, sales declined by 1.8 percent to $655.7 million in the quarter, despite a 5.3 percent increase in comparable store sales. Overall, the company ended the quarter with 516 DSW stores in the U.S., up from 512 a year ago.
In the Canada Retail segment, revenues reached $67.7 million. DSW ended the quarter with 139 locations in the country.
The ABG segment, which operates licensed shoe departments inside Stein Mart, saw comparable sales climb by 6.8 percent. The number of ABG stores declined to 287, 6 fewer than during the fourth quarter of 2017.
The group's overall gross margin contracted by 2.2 percentage points to 24.8 percent, which the company blamed on occupancy deleverage from the lost 53rd week, and the shift of a clearance-heavy week into the quarter.
DSW suffered a loss of $45.7 million, compared with a net profit of $11.9 million for the fourth quarter of 2017, weighed down by a $31.7 million impairment charge and a $58.1 million loss from its equity investment in Town Shoes.
For the full year, revenues increased by 13.3 percent to $3,174 million, including $310.0 million from the acquisitions of the Canadian business and the Camuto Group. Comparable sales increased by 6.1 percent and the gross margin gained 1 percentage point to 29.5 percent. It ended with a net loss $20.4 million against net income of $67.4 million for the previous year.
For the new financial year, the management expects to achieve low double-digit revenue growth, while increasing comparable store sales in the low single-digit range.