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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. Announces First Quarter 2010 Financial Results
- First quarter comparable store sales increase of 16.2%
- First quarter diluted EPS of $0.67 versus $0.16 last year
- Reiterates annual diluted EPS estimate of approximately $1.65 to $1.75
PRNewswire via COMTEX


COLUMBUS, Ohio, May 25, 2010 /PRNewswire via COMTEX/ --DSW Inc. (NYSE: DSW), a leading branded footwear specialty retailer, announced net income of $30.2 million on net sales of $449.5 million for the first quarter ended May 1, 2010, compared with net income of $7.1 million on net sales of $385.8 million for the first quarter ended May 2, 2009. Same store sales increased 16.2% versus a decrease of 4.7% last year.

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Diluted earnings per share were $0.67 for the first quarter of fiscal 2010 compared with diluted earnings per share of $0.16 last year.

Fiscal 2010 Annual Outlook

The Company reiterated its estimate of an increase in annual comparable store sales of approximately 6% to 8% and annual diluted earnings per share of approximately $1.65 to $1.75 for fiscal 2010. The estimated year-over-year earnings increase is expected to occur in the first six months of fiscal 2010. The second half performance implied in the guidance recognizes the more challenging last year comparisons for both sales growth and merchandise margins.

The Company will discuss its 2010 annual outlook on its webcasted conference call to be held today.

Webcast and Conference Call

To hear the Company's live earnings conference call, log on to today at 8:00 AM Eastern, or call 866-831-6291 and reference passcode 33033265. 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 10768050. An audio replay of the conference call, as well as additional financial information, will also be available at

About DSW Inc.

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 25, 2010, DSW operated 311 stores in 39 states and operated an e-commerce site, DSW also supplied footwear to 355 leased locations 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, performance 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; continuation of supply agreements and the financial condition of our leased business partners; 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; failure to retain our key executives or attract qualified new personnel; 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; risks related to our cash and investments; the success of; RVI's lease of an office facility; our ability to secure a replacement credit facility upon the expiration of our existing credit facility; and liquidity risks at Retail Ventures and their impact on DSW. 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)

                                                   May 1,   January 30,
                                                     2010          2010
                                                     ----          ----

    Cash and equivalents                         $141,863      $125,020
    Short-term investments                        152,358       164,265
    Accounts receivable, net                        6,195         5,529
    Inventories                                   286,657       262,284
    Prepaid expenses and other current
     assets                                        21,064        20,762
    Deferred income taxes                          30,542        29,130
    ---------------------                          ------        ------
    Total current assets                          638,679       606,990
    --------------------                          -------       -------

    Property and equipment, net                   204,038       206,424
    Goodwill                                       25,899        25,899
    Other assets                                   18,180        11,443
    ------------                                   ------        ------
    Total assets                                 $886,796      $850,756
    ============                                 ========      ========

    Accounts payable                             $132,103      $120,559
    Accrued expenses                              101,390       104,160
    ----------------                              -------       -------
    Total current liabilities                     233,493       224,719
    -------------------------                     -------       -------

    Non-current liabilities                        96,838       101,156
    Total shareholders' equity                    556,465       524,881
    --------------------------                    -------       -------
    Total liabilities and shareholders'
     equity                                      $886,796      $850,756
    ===================================          ========      ========

                                DSW INC.
                (In thousands, except per share amounts)

                                                     Three months ended
                                                   May 1,         May 2,
                                                    2010           2009
                                                  -------        -------

    Net sales                                     $449,537       $385,846
    Cost of sales                                 (302,172)      (280,865)
    -------------                                 --------       --------
    Gross profit                                   147,365        104,981
    Operating expenses                             (98,220)       (92,878)
    ------------------                             -------        -------
    Operating profit                                49,145         12,103
    Interest income, net                               785            254
    Non-operating expense, net                                       (395)
    --------------------------                                       ----
    Earnings before income taxes                    49,930         11,962
    Income tax provision                           (19,746)        (4,817)
    --------------------                           -------         ------
    Net income                                     $30,184         $7,145
    ----------                                     -------         ------

    Basic and diluted earnings per share:
       Basic                                         $0.69          $0.16
       Diluted                                       $0.67          $0.16

    Shares used in per share calculations:
       Basic                                        43,908         44,018
       Diluted                                      44,774         44,289



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