DSW Walked All Over After Poor Results

DSW (DSW Quote) got walked all over.

Shares of the footwear retailer slid more than 13% Thursday, closing the session at $11.23, a day after the company posted a 31% decline in first-quarter profit.

On Wednesday, DSW said it earned $7.1 million, or 16 cents per share, down from $10.3 million, or 23 cents per share, in the year-earlier period. Analysts expected earnings of 16 cents.

Revenue rose 5% to $385.8 million from $366.3 million, while total same-store sales fell 4.7%.

Going forward, DSW expects full-year earnings in the range of 30 cents to 35 cents a share and a mid-single-digit decline in same-store sales.

The retailer's fate also may lie in the hands of the disintegrating Filene's Basement. The privately-held retailer announced early in the month that it filed for bankruptcy protection, a move that may also jeopardize DSW.

DSW allocated $5.7 million in shared services expense to Filene's Basement in 2009, according to its annual filing. As of January it was still owed $1.8 million from last year's shared-services contract. DSW also operated the footwear departments at Filene's Basement.