DSW Inc. (DSW) has reported 159.51 percent jump in profit for the quarter ended Jan. 28, 2017. The company has earned $30.53 million, or $0.38 a share in the quarter, compared with $11.76 million, or $0.14 a share for the same period last year. On an adjusted basis, the company has earned $16.51 million, or $0.20 a share for the quarter. Revenue during the quarter went up marginally by 0.38 percent to $674.62 million from $672.04 million in the previous year period. Gross margin for the quarter expanded 47 basis points over the previous year period to 25.03 percent. Total expenses were 92.74 percent of quarterly revenues, down from 97.46 percent for the same period last year. This has led to an improvement of 472 basis points in operating margin to 7.26 percent.
Operating income for the quarter was $48.95 million, compared with $17.07 million in the previous year period.
Roger Rawlins, chief executive officer stated, "Our fourth quarter continued our return to year over year profitability growth, with top line results that met our comp guidance. Inventory management and a product-focused campaign drove significantly higher gross margin, which, coupled with better expense control, resulted in a 22% increase in adjusted earnings per share this fall season."
DSW Inc. forecasts revenue to grow in the range of 3 percent to 5 percent for the fiscal year 2017. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $1.45 to $1.55 on adjusted basis.
Working capital declinesDSW Inc. has witnessed a decline in the working capital over the last year. It stood at $442.66 million as at Jan. 28, 2017, down 6.26 percent or $29.58 million from $472.24 million on Jan. 30, 2016. Current ratio was at 2.40 as on Jan. 28, 2017, down from 2.46 on Jan. 30, 2016. Cash conversion cycle (CCC) has increased to 30 days for the quarter from 25 days for the last year period. Days sales outstanding were almost stable at 1 days for the quarter, when compared with the last year period.
Days inventory outstanding has increased to 45 days for the quarter compared with 43 days for the previous year period. At the same time, days payable outstanding went down to 17 days for the quarter from 19 for the same period last year.
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