Credit: Image source: DSW Inc.What happened
Shares of DSW Inc. (NYSE: DSW) slumped on Wednesday after the footwear retailer reported its first-quarter results . Both revenue and earnings came in above analyst estimates, and the company's full-year earnings guidance was in line with expectations, but that wasn't enough to prevent the stock from heading lower. Shares of DSW were down about 7.1% as of 12:05 p.m. EDT, after being down as much as 11.9% earlier in the day.
So what
DSW reported first-quarter revenue of $712 million, up 2.9% year over year and about $30 million above the average analyst estimate. Comparable sales rose 2.2% overall, better than a 3% decline in the prior-year period. DSW's revenue included $5.6 million from Ebuys, which the company decided to shut down earlier this year.
Image source: DSW Inc.
Non- GAAP earnings per share came in at $0.39, up from $0.32 in the prior-year period and $0.02 higher than analysts were expecting. This number includes a $0.04 loss related to Ebuys. For the full year, DSW expects non-GAAP EPS in the range of $1.52 to $1.67. That compares a consensus analyst estimate of $1.62.
Now what
It's hard to say exactly why DSW stock tumbled after a positive first-quarter report. Shares had gained about 56% over the past year prior to Wednesday's plunge, so this may be a case of expectations outpacing what the company could deliver. Investors may have been expecting more than in-line earnings guidance for the full year.
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Timothy Green has no position in any of the stocks mentioned. The Motley Fool recommends DSW. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
