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DSW Swings to Loss, Hires New CEO

Former CEO of Shopko Stores Michael MacDonald named top executive.

DSW

A DSW Shoes location.

Photo By Courtesy Photo

After reporting steep fiscal 2008 losses on Wednesday, DSW Inc. said it had tapped a new president and CEO.
 
Michael MacDonald, most recently chairman and CEO of Shopko Stores, will assume the top position at the retailer.
 
“Mike is a results-driven leader with a substantial breadth of experience in the retail industry,” said Jay Schottenstein, chairman of DSW.
 
In his new role, MacDonald — who also has held executive positions at Saks Inc., Carson Pirie Scott, Marshall Fields and Dayton Hudson, will report to Schottenstein.
 
Separately, for the quarter ended Feb. 2, the company posted a net loss of $7.5 million, or 17 cents per diluted share, compared with a net profit of $1.1 million, or 2 cents, for the same year-ago quarter.
 
Sales during the quarter increased nearly 5 percent to $348.2 million, versus $332.5 million for the same quarter of 2008. Same-store sales during the quarter declined 7 percent, compared with a 2 percent drop a year ago.
 
For the full year, the company reported earnings of $26.9 million, or 61 cents, compared with $53.8 million, or $1.21 a share, the prior year. Sales were $1.46 billion, compared with year-earlier sales of $1.41 billion.
 
For the coming year, the company announced plans to open 10 new stores. Comp-store sales are expected to decline in the mid-single digits. The company did not issue earnings guidance for fiscal 2009.