DSW Inc. shares fell more than 11 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 some stocks rebounded from Monday’s market rout. DSW shares fell to $27.35 at the close of trading in New York, the biggest drop since May 2014. Even before the decline, DSW’s stock was down 17 percent this year.