DSW Inc. (DSW, Financial) filed Quarterly Report for the period ended 2012-10-27.
Dsw Inc has a market cap of $3.04 billion; its shares were traded at around $67.99 with a P/E ratio of 21.5 and P/S ratio of 1.5. The dividend yield of Dsw Inc stocks is 1.1%. Dsw Inc had an annual average earning growth of 17.1% over the past 5 years.
Operating Expenses. Operating expenses as a percentage of net sales were 20.5% and 22.7% for the third quarter of fiscal 2012 and the third quarter of fiscal 2011, respectively. In the third quarter of fiscal 2012, DSW received an award of damages of $5.3 million from our insurance carrier related to a denied claim, partially offset by related expense of $1.3 million, which resulted in leverage of operating expenses of 70 basis points.
For the DSW segment, total gross profit decreased 80 basis points as a result of a decrease in merchandise margin and an increase in distribution and fulfillment expenses, partially offset by a decrease in store occupancy expense. Merchandise margin, defined as gross profit excluding occupancy and distribution and fulfillment expenses, a non-GAAP measure, for the DSW segment decreased as a percentage of net sales to 46.1% for the nine months ended October 27, 2012 from 46.7% for the nine months ended October 29, 2011 primarily due to an increase in markdowns. Store occupancy expense for the DSW segment decreased as a percentage of net sales to 10.0% for the nine months ended October 27, 2012 from 10.2% for the nine months ended October 29, 2011 primarily as a result of the comparable sales increase. Distribution and fulfillment expenses increased as a percentage of net sales to 2.0% for the nine months ended October 27, 2012 from 1.8% for the nine months ended October 29, 2011 primarily due to incremental labor to support business growth initiatives surrounding the reconfiguration of the Columbus distribution center and the expansion of the fulfillment center to support dsw.com growth.
Operating Expenses. Operating expenses as a percentage of net sales were 21.4% and 22.5% for the nine months ended October 27, 2012 and the nine months ended October 29, 2011, respectively. In the third quarter of fiscal 2012, DSW received an award of damages of $5.3 million from our insurance carrier related to a denied claim, partially offset by related expense of $1.3 million, which resulted in leverage of operating expenses of 20 basis points.
Investing Cash Flows. For the nine months ended October 27, 2012, our net cash used in investing activities was $30.6 million compared to $35.8 million for the nine months ended October 29, 2011. During the nine months ended October 27, 2012, we incurred $83.5 million in capital expenditures, of which $59.4 million related to stores and $24.1 million related to information technology, the reconfiguration of the Columbus distribution center, the expansion of the dsw.com fulfillment center and business infrastructure. During the nine months ended October 27, 2012, we had net sales of short-term and long-term investments of $49.7 million compared to net sales of short-term and long-term investments of $19.6 million during the nine months ended October 29, 2011.
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Dsw Inc has a market cap of $3.04 billion; its shares were traded at around $67.99 with a P/E ratio of 21.5 and P/S ratio of 1.5. The dividend yield of Dsw Inc stocks is 1.1%. Dsw Inc had an annual average earning growth of 17.1% over the past 5 years.
Highlight of Business Operations:
For the DSW segment, total gross profit decreased 80 basis points as a result of a decrease in merchandise margin and an increase in distribution and fulfillment expenses, partially offset by a decrease in store occupancy expense. Merchandise margin, defined as gross profit excluding occupancy and distribution and fulfillment expenses, a non-GAAP measure, for the DSW segment decreased as a percentage of net sales to 46.3% for the third quarter of fiscal 2012 from 47.0% for the third quarter of fiscal 2011 as a result of an increase in markdowns. Store occupancy expense for the DSW segment remained relatively flat as a percentage of net sales at 9.7% for the third quarter of fiscal 2012 compared to 9.8% for the third quarter of fiscal 2011. Distribution and fulfillment expenses as a percentage of net sales increased to 2.0% for the third quarter of fiscal 2012 from 1.8% for the third quarter of fiscal 2011 primarily due to the expansion of dsw.com.Operating Expenses. Operating expenses as a percentage of net sales were 20.5% and 22.7% for the third quarter of fiscal 2012 and the third quarter of fiscal 2011, respectively. In the third quarter of fiscal 2012, DSW received an award of damages of $5.3 million from our insurance carrier related to a denied claim, partially offset by related expense of $1.3 million, which resulted in leverage of operating expenses of 70 basis points.
For the DSW segment, total gross profit decreased 80 basis points as a result of a decrease in merchandise margin and an increase in distribution and fulfillment expenses, partially offset by a decrease in store occupancy expense. Merchandise margin, defined as gross profit excluding occupancy and distribution and fulfillment expenses, a non-GAAP measure, for the DSW segment decreased as a percentage of net sales to 46.1% for the nine months ended October 27, 2012 from 46.7% for the nine months ended October 29, 2011 primarily due to an increase in markdowns. Store occupancy expense for the DSW segment decreased as a percentage of net sales to 10.0% for the nine months ended October 27, 2012 from 10.2% for the nine months ended October 29, 2011 primarily as a result of the comparable sales increase. Distribution and fulfillment expenses increased as a percentage of net sales to 2.0% for the nine months ended October 27, 2012 from 1.8% for the nine months ended October 29, 2011 primarily due to incremental labor to support business growth initiatives surrounding the reconfiguration of the Columbus distribution center and the expansion of the fulfillment center to support dsw.com growth.
Operating Expenses. Operating expenses as a percentage of net sales were 21.4% and 22.5% for the nine months ended October 27, 2012 and the nine months ended October 29, 2011, respectively. In the third quarter of fiscal 2012, DSW received an award of damages of $5.3 million from our insurance carrier related to a denied claim, partially offset by related expense of $1.3 million, which resulted in leverage of operating expenses of 20 basis points.
Investing Cash Flows. For the nine months ended October 27, 2012, our net cash used in investing activities was $30.6 million compared to $35.8 million for the nine months ended October 29, 2011. During the nine months ended October 27, 2012, we incurred $83.5 million in capital expenditures, of which $59.4 million related to stores and $24.1 million related to information technology, the reconfiguration of the Columbus distribution center, the expansion of the dsw.com fulfillment center and business infrastructure. During the nine months ended October 27, 2012, we had net sales of short-term and long-term investments of $49.7 million compared to net sales of short-term and long-term investments of $19.6 million during the nine months ended October 29, 2011.
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