Shares of discount shoe and accessories retailer DSW (DSW) - Get Report plunged on Tuesday after the company reported a surprise fiscal fourth-quarter loss, even as revenue came in roughly as expected.
DSW said it lost $5.4 million, or 7 cents a share, in its fiscal fourth quarter ended Feb. 2, vs. earnings of $30.8 million, or 38 cents a share, in the comparable year-earlier period. Analysts polled by FactSet had been anticipating per-share earnings of 3 cents.
Sales for the quarter were $838.6 million vs. $723.4 million a year earlier. Analysts had predicted sales of $840 million for the quarter.
Strong demand for its DSW Kids line of offerings partially offset higher overall expenses and an increase in inventories, DSW said. The company ended the year with inventories of $645 million compared with $502 million at the end of fiscal 2017.
Excluding inventories from the acquisitions, inventories per square foot increased by 5.9% year over year.
For the full year, DSW reported a net loss of $20.5 million, or 26 cents a share, compared to net income of $67.5 million, or 84 cents a share, in the prior year. Excluding various charges and adjustments, full-year per-share earnings were $1.66 a share.
Shares of DSW swooned more than 12% at the open on Tuesday, falling $3.23 to $22.13 on the New York Stock Exchange.
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