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What DSW's Earnings Mean For Mutual Fund Investors (DSW)

Shauna O'Brien Mar 17, 2015

Before Tuesday’s opening bell, DSW (DSW) released its fourth quarter financial results. Here’s what the results mean for mutual fund investors.

Inside DSW’s Results

Earnings

The company reported earnings of $30.8 million, or 34 cents per share, up from $28.1 million, or 30 cents per share, last year. Adjusted EPS was 35 cents, above analysts’ view of 28 cents.

Revenue
Sales rose to $640 million from $572 million. Analysts expected to see revenue of $614.47 million.

Outlook
The company expects to see FY2015 sales growth between 7% and 8% and EPS between $1.80 and $1.90. Analysts expect to see EPS of $1.90.

Strong Same Store Sales

In its most recent quarter, DSW saw comparable store sales growth of 7.6%. For the year, the retailer expects to see comparable store sales growth in the low-to-mid single digit range.

The company has taken advantage of the improving consumer confidence, and has been opening more stores, while improving existing stores.

In February, DSW boosted its quarterly dividend to 20 cents per share – lifting its yield to around 2%.

Mutual Funds to Watch

Investors interested in DSW may also consider a mutual fund as an alternative to owning the individual stock. The funds below currently hold the largest stakes in DSW.

Symbol	Mutual Fund	Stake
NAESX	Vanguard Small Cap	1.64%
VTSMX	Vanguard Total Stock Index Fund	1.58%
CHNDX	Prudential Jennison Small Company	1.20%

The Bottom Line

The funds above are a great way for investors to gain exposure to a diverse bundle of securities and industries. Investors interested in DSW may also be interested in Brown Shoe Company (BWS) or Finish Line (FINL).

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