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Designer Brands is one of North America’s largest designers, producers and retailers of footwear and accessories. Our business segments include world-class design and sourcing operations, a robust wholesaling business, and more than 1,000 points of distribution.

DSW Inc. Reports 2008 First Quarter Financial Results


COLUMBUS, Ohio, May 29 /PRNewswire-FirstCall/ -- DSW Inc. (NYSE: DSW), a leading branded footwear specialty retailer, announced net income of $10.3 million on net sales of $366.3 million for the first quarter ended May 3, 2008, compared with net income of $23.7 million on net sales of $357.0 million for the first quarter ended May 5, 2007. Same store sales decreased 5.4% for the comparable period versus a decrease of 3.6% last year.

Diluted earnings per share were $0.23 for the first quarter this year compared with $0.54 last year.

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2008 Outlook

For the fiscal year ending January 31, 2009, the Company reiterated its previous guidance of estimated annual comparable store sales in the negative mid-single digits and annual earnings per diluted share in the range of $0.75 to $0.85. The Company maintains its plans to open at least 30 DSW stores during the year.

Webcast and Conference Call

To hear the Company's live earnings conference call, log on to today at 8:00 AM Eastern, Thursday, May 29, 2008 or call 1-800- 706-7748 and reference passcode 70368480. To hear a replay of the earnings call, which will be available approximately two hours after the conference call ends, dial 1-888-286-8010, followed by passcode 70790081. An audio replay of the conference call, as well as additional financial information, will also be available at

About DSW

DSW Inc. is a leading branded footwear specialty retailer that offers a wide selection of brand name and designer dress, casual and athletic footwear for women and men. As of May 29, 2008 DSW operated 270 stores in 37 states and operated an e-commerce site, DSW also supplied footwear to 384 leased locations (36 for related retailers and 348 for non-related retailers) in the United States. For store locations and additional information about DSW, visit

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Any statements in this release that are not historical facts, including the statements made in our "Outlook," are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the Company's current expectations and involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. These factors include, but are not limited to: our success in opening and operating new stores on a timely and profitable basis; termination of supply agreements; maintaining good relationships with our vendors; our ability to anticipate and respond to fashion trends; fluctuation of our comparable store sales and quarterly financial performance; disruption of our distribution operations; our dependence on Retail Ventures, Inc. for key services; impact of the disposition of a majority interest in Value City by Retail Ventures on the allocation of expenses pursuant to the shared services agreement with Retail Ventures, Inc.; failure to retain our key executives or attract qualified new personnel; the success of our e-commerce business; our competitiveness with respect to style, price, brand availability and customer service; declining general economic conditions; risks inherent to international trade with countries that are major manufacturers of footwear; liquidity risks related to our investments; and security risks related to our electronic processing and transmission of confidential customer information. Additional factors that could cause our actual results to differ materially from our expectations are described in the Company's latest annual or quarterly report, as filed with the SEC. All forward-looking statements speak only as of the time when made. The Company undertakes no obligation to revise the forward-looking statements included in this press release to reflect any future events or circumstances.

                                   DSW INC.
                   (In thousands, except per share amounts)
                                                   Three Months   Three Months
                                                      Ended          Ended
                                                      May 3,         May 5,
                                                       2008           2007

    Net sales                                       $366,264       $356,997
    Cost of sales                                   (269,217)      (247,741)
    Gross profit                                      97,047        109,256
    Operating expenses                               (81,041)       (72,038)
    Operating profit                                  16,006         37,218
    Interest income, net                                 723          1,719
    Earnings before income taxes                      16,729         38,937
    Income tax provision                              (6,441)       (15,193)
    Net income                                       $10,288        $23,744

    Basic and diluted earnings per share:
      Basic                                            $0.23          $0.54
      Diluted                                          $0.23          $0.54

    Shares used in per share calculations:
      Basic                                           43,966         43,942
      Diluted                                         44,149         44,361

                                   DSW INC.
                                (In thousands)

                                                      May 3,      February 2,
                                                       2008           2008

    Cash and equivalents                            $118,284        $61,801
    Short-term investments                             5,100         70,005
    Accounts receivable, net                          15,917         14,343
    Inventories                                      267,797        262,037
    Prepaid expenses and other current assets         22,430         23,134
    Deferred income taxes                             21,438         20,302
    Total current assets                             450,966        451,622

    Property and equipment, net                      204,409        192,772
    Long-term investments                              8,391         12,500
    Goodwill                                          25,899         25,899
    Tradenames and other intangibles, net              4,309          4,522
    Deferred income taxes and other assets             6,052          6,567
    Total assets                                    $700,026       $693,882

    Accounts payable                                 $97,904       $114,595
    Accrued expenses                                  64,461         54,310
    Total current liabilities                        162,365        168,905

    Other non-current liabilities                     92,895         91,497
    Total shareholders' equity                       444,766        433,480
    Total liabilities and shareholders' equity      $700,026       $693,882


DSW Investor Relations, +1-614-872-1474

Web site:


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