Diamonds and Dogs
Shoes are still in fashion. The shoe retailer, DSW jumped 8% after beating earnings estimates as revenue rose 17% to $833 million well ahead of estimates. Comparable sales increased 7.3% while gross profits, as a percent of sales, increased by 220 bps, driven by favorable merchandise margin and business mix. Management said nationwide rollout of DSW kids coinciding with the company's most successful back-to-school season in its history along with the acquisition of Canadian-operated retail shoe chain Town Shoes, delivered the best results in the last five years. I love when plans come together.
Stitch Fix (SFIX) missed a stitch. The online personal styling service company dropped 20% today following earnings. Earnings actually beat expectations as sales rose 23.8% to $366 million ahead of estimates. However, slower active client growth, lower advertising spending and a flat active client count has shareholders hitting the sell button.