DSW Q1 net income drops 13%, but still beats predictions
Columbus, Ohio — DSW Inc. experienced drops in both net income and same-store sales for the first quarter of fiscal 2013. Net income declined about 13%, dropping to $34.5 million from $39.9 million in the year-ago period, amid hefty one-time charges. Its results, however, beat analyst expectations.
For the quarter ended May 4, same-store sales declined 2.4%. In one bright spot, sales rose almost 8% to $601.4 million, from $558.6 million.
DSW cited unpredictable swings in weather during the quarter. President and CEO Mike McDonald credited merchandise and supply chain teams with adjustments to merchandise receipts and product flow.
“We were pleased with the strong sales rebound in the final four weeks of the quarter that allowed us to minimize our comparable sales decline and exit the quarter with well positioned inventories,” said MacDonald.
The Fresh Market has tasty quarter
Greensboro, N.C. — The Fresh Market Inc. grew net income, same-store sales and net sales during first quarter 2013. Net income rose 14% to $22.1 million, from $19.3 million in the prior year.
Net sales jumped 13% to $366.6 million.
“We were pleased to see our business and customer traffic improve in the first quarter,” said Fresh Market president and CEO Craig Carlock. “New store development remains on track and our solid results give us confidence as we assess customer behavior and our outlook for the balance of the year.”
During the first quarter of fiscal 2013, the company opened two new stores in Charlottesville, Va., and Aiken, S.C. As of April 28, 2013, the company operated 131 stores in 25 states.
Brown Shoe feels impact of exiting brands
St. Louis — Brown Shoe Company Inc. reported a net loss and declining net sales in first quarter 2013 as the company cited the impact of having exited some businesses in the past year.
The retailer experienced a net loss of $10.8 million, compared to net earnings of $1.7 million a year earlier. Net sales declined about 1% to $588.7 million from $598.2 million.
However, Brown Shoe said that taking $10.4 million in net sales from exited brands during the first quarter of last year into account, net sales actually slightly improved this year.
“We saw improved consumer conversion related to our strategic real estate, inventory and omni-channel efforts,” said Diane Sullivan, president and CEO of Brown Shoe Company. “At wholesale, we refined our portfolio, with the recent sale of Avia and Nevados, and we intend to use the related proceeds in our 2013 debt reduction efforts.”