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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 Fourth Quarter and Year End Financial Results


COLUMBUS, Ohio, March 25 /PRNewswire-FirstCall/ -- DSW Inc. (NYSE: DSW), a leading branded footwear specialty retailer, announced a net loss of $7.5 million on net sales of $348.2 million for the quarter ended January 31, 2009 compared with net income of $1.1 million on net sales of $332.5 million for the quarter ended February 2, 2008. Same store sales decreased 7.2% versus a decrease of 1.7% last year.


Diluted loss per share was $0.17 for the fourth quarter compared with diluted earnings per share of $0.02 last year.

Annual Results

Net income was $26.9 million on net sales of $1.46 billion for the year-to-date period ended January 31, 2009 compared with net income of $53.8 million on net sales of $1.41 billion for the year-to-date period ended February 2, 2008. Same store sales decreased 5.9% versus a decrease of 0.8% last year.

Diluted earnings per share were $0.61 for the year-to-date period compared with $1.21 last year.

Fiscal 2009 Outlook

The Company anticipates a mid-single digit decrease in comparable store sales and expects to open approximately 10 new DSW stores compared to 41 new stores in 2008. Capital expenditures are expected to decrease to approximately $35 million from $81 million in 2008.

Given the current uncertainty in the macro-economic environment, the Company is not providing guidance for annual diluted earnings per share at this time.

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 8:00 AM Eastern, or call 1-800-510-9836 and reference passcode 84948324. 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 84841285. 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 March 25, 2009, DSW operated 300 stores in 37 states and operated an e-commerce site, DSW also supplied footwear to 367 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 our supply agreements with our leased departments; 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 claim related to Value City Department Stores; 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 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 Filene's Basement and their impact on DSW and the allocation of shared services. 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)

                                        January 31,     February 2,
                                              2009            2008

    Cash and equivalents                   $54,782         $61,801
    Short-term investments                 101,404          70,005
    Accounts receivable, net                 7,187          14,343
    Inventories                            244,008         262,037
    Prepaid expenses and other
     current assets                         24,790          23,134
    Deferred income taxes                   21,876          20,302
    Total current assets                   454,047         451,622

    Property and equipment, net            233,366         192,772
    Long-term investments, net               1,266          12,500
    Goodwill                                25,899          25,899
    Deferred income taxes
     and other assets                        6,619          11,089
    Total assets                          $721,197        $693,882

    Accounts payable                       $95,211        $114,595
    Accrued expenses                        63,115          54,310
    Total current liabilities              158,326         168,905

    Non-current liabilities                 97,287          91,497
    Total shareholders' equity             465,584         433,480
    Total liabilities and
     shareholders' equity                 $721,197        $693,882

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

                                    Thirteen              Fifty two
                                   weeks ended           weeks ended
                            January 31, February 2, January 31, February 2,
                                  2008        2009        2008        2009

    Net sales                 $348,150    $332,520  $1,462,944  $1,405,615
    Cost of sales             (276,267)   (259,651) (1,083,845) (1,035,480)
    Gross profit                71,883      72,869     379,099     370,135
    Operating expenses         (83,672)    (71,897)   (336,286)   (288,814)
    Operating (loss) profit    (11,789)        972      42,813      81,321
    Interest income, net           777         770       2,606       5,970
     impairment charge on
     investments                (1,134)                 (1,134)
    (Loss) earnings before
     income taxes              (12,146)      1,742      44,285      87,291
    Income tax benefit
     (provision)                 4,625        (664)    (17,383)    (33,516)
    Net (loss) income          $(7,521)     $1,078     $26,902     $53,775
    Basic and diluted (loss)
     earnings per share:
        Basic                   $(0.17)      $0.02       $0.61       $1.22
        Diluted                 $(0.17)      $0.02       $0.61       $1.21

    Shares used in per share
        Basic                   44,016      43,959      43,998      43,953
        Diluted                 44,016      44,118      44,218      44,273


CONTACT: Investor Relations for DSW Inc., +1-614-872-1474

Web Site:


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