Rochester,NY 9/2/2009 10:02:27 PM
DSW Inc. DSW, Analysts Laud Progress at DSW
DSW Inc.
Last week, analysts applauded the leadership of DSW Inc.’s recently appointed president and CEO, Michael MacDonald, despite an earnings decline during the second quarter.
"[DSW] did something in this quarter that it hasn’t done in a long time, which is to batten down the hatches on costs," said Christopher Svezia, an analyst for Susquehanna Financial Group. "That was certainly encouraging. Some of these things were in place before Mike got there, but he seems to have a much more cost-conscious approach to running the business day in and day out."
R.J. Jones, an analyst at Ragen Mackenzie, a division of Wells Fargo, agreed that MacDonald, who joined DSW in April, has introduced a practicality that could position the company for stronger times ahead.
During the second quarter, the company’s profit dipped 31 percent. For the three months ended Aug. 1, the Columbus, Ohio-based company reported a net income of $7.6 million, or 17 cents a share, compared with $11 million, or 25 cents, in the second quarter of 2008. The results bested expectations of analysts polled by Yahoo Finance by 6 cents.
Sales increased 3 percent to $369.5 million from $357.2 million in the year-ago period. Same-store sales dropped 2.9 percent, compared with a 6.9 percent dip in the second quarter of 2008.
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