Shares of DSW Inc. sank 12% in premarket trade Tuesday, after the footwear retailer reported fiscal third-quarter profit and sales that missed expectations and cut its full-year earnings outlook. Net income for the quarter to Oct. 28 fell to $4.0 million, or 5 cents a share, from $39.0 million, or 47 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 45 cents, below the FactSet consensus of 53 cents. Revenue rose to $708.3 million from $696.6 million, but missed the FactSet consensus of $709.6 million. Same-store sales declined 0.4%, missing expectations of a 0.5% rise, with hurricanes estimated to reduce sales by 0.5 to 0.6 percentage points. The company cut its 2017 EPS guidance range to $1.40 to $1.45 from $1.45 to $1.55. Chief Executive Roger Rawlins said results were negatively impacted by an “unusually severe hurricane season,” and as cold weather-related products “struggled to gain the traction we had anticipated.” The stock has run up 44% over the past three months through Monday, but has lost 0.5% year to date. In comparison, the SPDR S&P Retail ETF has lost 4.5% this year and the S&P 500 has gained 15%.
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