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NEW YORK, United States — DSW Inc. shares fell almost 10 percent, defying a broader market rally, after the shoe retailer's second-quarter growth missed estimates.
The company reported sales of $627.2 million in the period, short of the $636.8 million predicted by analysts. The sales climbed 1.8 percent on a comparable-store basis. Analysts had estimated a 3.8 percent rise, according to Consensus Metrix.
DSW Chief Executive Officer Mike MacDonald is working to increase margins by cutting down on clearance events. But that shift is taking a toll on sales, especially as U.S. consumers navigate a still-shaky economy by seeking out bargains.
The results raised concerns for investors, even on a day when most stocks rebounded from Monday’s market rout. DSW shares fell as low as $27.83 in New York, the biggest intraday drop since May 2014. Even before the decline, DSW’s stock was down 17 percent this year.
By Lindsey Rupp; editors: Nick Turner and Leslie Patton.
