Retail Ventures Q1 profit soars

US: Retail Ventures Q1 profit soars

Author: just-style.com | 12 June 2008

Retail Ventures Inc, the off-price retailer that operates the Filene's Basement and DSW stores, has posted a sharp rise in first quarter profit, helped by lower income tax expenses and gains in the value of derivatives.

For the first quarter to 3 May, income from continuing operations jumped 150% to $32.8m, or $0.63 per share, compared to $13.1m, or $0.22 per share in the same period last year.

Net income soared to $29.2m or $0.56 per share, from $2.7m or $0.05 per share in the same quarter of the previous year.

The retailer said it recorded a $37.2m gain on the value of derivatives and that income tax expense fell to $6.5m from $18.7m in the quarter helped by the sale of its majority stake in the Value City Department Stores in January.

The Columbus, Ohio-based company said total sales increased 0.1% to $466.3m from $465.8m, while same store sales were down 4.3%.

Same-store sales were down 5.4% at DSW and fell 0.2% at Filene's Basement.

Retail Ventures operates 36 Filene's Basement stores and 269 DSW stores.

Sectors: Apparel, Finance, Footwear, Retail

Companies: DSW