DSW Inc. (DSW) is posted upbeat third-quarter sales before the market opened on Tuesday, Dec. 11. Earnings grew ten-fold to $39.3 million or $0.48 per share but fell short of estimates, while revenue jumped 17.2% to $833 million. Comp-store sales grew 7.3%, excluding Canada retail segment.
The Street expected earnings of $0.53 per share on revenue of $785.6 million for the quarter.
DSW also raised its full-year outlook for adjusted EPS to $1.70-$1.85 per diluted share from the previous $1.60-$1.75 per share range. The footwear retailer also noted that the Camuto Group acquisition is expected to yield benefits starting in 2019.
Back in November, Foot Locker (FL) stock benefitted from upbeat third-quarter earnings and sales. The peer company reported earnings of $0.95 per share on revenue of $1.86 billion. Comp-store sales increased 2.9%, while gross margin expanded to 31.6%.
The run-up to the holiday season has been disappointing for the retail industry—with lackluster financial performance and weak guidance weighing down on the market value of several leading players. Concerns over the long-term headwinds to profitability looks to outweigh the positive factors like economic growth and low unemployment.
Except for Walmart (WMT), most retailers came out with unimpressive results for the most recent quarter. The underlining weakness in market sentiment is so strong that even Walmart’s shares remained in the red over the past week despite the company posting above-consensus third-quarter numbers.