Seeking Alpha

DSW swoons after weak sales report

  • DSW (DSW) reports comparable-store sales fell 3.7% in FQ1 with weather and promotions teed up by management as sales drags.
  • Inventory on a cost per square foot basis was up 1.4% at the end of the quarter.
  • FY15 guidance was lowered by DSW.
  • Shares of DSW -18.9% premarket.

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Comments (2)
  • Patent News
    , contributor
    Comments (1417) | Send Message
     
    buy the dip?
    28 May 2014, 08:27 AM Reply Like
  • Tollsforthee
    , contributor
    Comments (412) | Send Message
     
    I did. I picked up 4000 shares at $23.96.

     

    Still looks like a solid projection; mgmt says $1.45 to $1.60 in earnings FY14.

     

    At a PE of 15, that works out to $24/shr, so fair value assuming they hit the top end; they have little debt, and plenty of coverage for the $0.13 quarterly divvy.

     

    We'll see how it goes from here. I'm going to hold this one for several months, so I'm not going to be too bothered if it trades down lower, in fact I may pick up more.
    28 May 2014, 10:54 AM Reply Like
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