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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 2009 First Quarter Financial Results; Provides Annual Outlook
PRNewswire-FirstCall via COMTEX

COLUMBUS, Ohio, May 27, 2009 /PRNewswire-FirstCall via COMTEX/ -- DSW Inc. (NYSE: DSW), a leading branded footwear specialty retailer, announced net income of $7.1 million on net sales of $385.8 million for the quarter ended May 2, 2009 compared with net income of $10.3 million on net sales of $366.3 million for the quarter ended May 3, 2008. Same store sales decreased 4.7% versus a decrease of 5.4% last year.

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Diluted earnings per share were $0.16 for the first quarter of fiscal 2009 compared with diluted earnings per share of $0.23 last year.

Fiscal 2009 Outlook

For the fiscal year ending January 30, 2010, the Company estimates annual diluted earnings per share to be approximately $0.30 to $0.35.

The Company anticipates a mid-single digit decrease in comparable store sales and expects to open approximately ten new DSW stores compared with 41 new stores last year. Capital expenditures are expected to decrease to approximately $35 million compared with $81 million last year.

The Company will discuss its 2009 outlook more fully 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 4:30 PM Eastern, or call 1-800-798-2884 and reference passcode 75086535. 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 71423591. 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 27, 2009, DSW operated 304 stores in 38 states and operated an e-commerce site, DSW also supplied footwear to 363 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; the realization of our bankruptcy claims related to Filene's Basement and Value City Department Stores; impact of the disposition of Filene's Basement by Retail Ventures on the allocation of expenses pursuant to the shared services agreement with RVI; 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; the success of; liquidity and investment risks related to our investments; our ability to secure additional credit upon the termination of our existing credit facility; and liquidity risks at Retail Ventures and its 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 2,    January 31,
                                                    2009           2009

    Cash and equivalents                        $   82,121     $   54,782
    Short-term investments, net                     81,402        101,404
    Accounts receivable, net                         7,368          7,187
    Inventories                                    278,229        244,008
    Prepaid expenses and other current assets       21,511         24,790
    Deferred income taxes                           24,798         21,876
    Total current assets                           495,429        454,047

    Property and equipment, net                    230,344        233,366
    Goodwill                                        25,899         25,899
    Deferred income taxes and other assets           5,911          7,885
    Total assets                                $  757,583     $  721,197

    Accounts payable                            $  120,390     $   95,211
    Accrued expenses                                64,759         63,115
    Total current liabilities                      185,149        158,326

    Deferred income taxes and non-current
     liabilities                                    98,656         97,287
    Total shareholders' equity                     473,778        465,584
    Total liabilities and shareholders' equity  $  757,583     $  721,197

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

                                                    Three months ended
                                               May 2, 2009    May 3, 2008

    Net sales                                     $385,846       $366,264
    Cost of sales                                 (280,865)      (269,217)
    Gross profit                                   104,981         97,047
    Operating expenses                             (92,878)       (81,041)
    Operating profit                                12,103         16,006
       Interest expense                               (183)          (274)
       Interest income                                 437            997
    Interest income, net                               254            723
    Other-than-temporary impairment charge on
     investments                                      (395)
    Earnings before income taxes                    11,962         16,729
    Income tax provision                            (4,817)        (6,441)
    Net income                                      $7,145        $10,288

    Basic and diluted earnings per share:
       Basic                                         $0.16          $0.23
       Diluted                                       $0.16          $0.23
    Shares used in per share calculations:
       Basic                                        44,018         43,966
       Diluted                                      44,289         44,149



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