DSW to shutter a division
DSW on Tuesday reported fourth-quarter revenue that missed expectations and said it is closing its Ebuys division.
DSW acquired Ebuys, an online off-price footwear and accessories company, in 2016. The retailer said that following a review of strategic alternatives for Ebuys, it decided to exit the business and liquidate its inventory and assets.
“The company expects to complete the liquidation process in early 2018 and may incur additional one-time exit charges, which will be excluded from adjusted results,” DSW stated.
DSW’s net income for the quarter fell to $11.7 million, or 15 cents a share, in the quarter ended Feb. 3, down from $30.5 million, or 38 cents a share, in the year-ago period. Excluding non-recurring items, including the impact of recent tax legislation, adjusted earnings per share came to 38 cents, topping Street estimates of 27 cents.
Revenue rose to $720.0 million from $674.6 million, falling short of analysts’ estimates of $728.2 million. Same-store sales rose 1.3%, better than expected.
DSW raised its quarterly dividend by 25% to 25 cents a share, with the new dividend payable April 6 to shareholders of record on March 23.
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