NEW YORK (TheStreet) -- DSW Inc (DSW) stock is plummeting on Wednesday after the company reported its first quarter below analysts' consensus and guided for full-year profits less than forecasts. By early afternoon, shares had tanked 27.4% to $23.60.
The shoe retailer earned 42 cents a share over its April-ending quarter, 6 cents less than what analysts surveyed by Thomson Reuters had forecast. Revenue edged 0.5% higher to $598.95 million, short of analysts' estimates of $622.33 million.
For its full year, management expects earnings of $1.45 to $1.60 a share and comparable sales falling by low single digits. Analysts had expected earnings of $1.90 a share.
TheStreet Ratings team rates DSW INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate DSW INC (DSW) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
- You can view the full analysis from the report here: DSW Ratings Report