DSW Inc. shares dropped the most since August after the discount shoe retailer cut its forecast and named a new chief executive officer, stoking concerns about the company’s performance.
DSW now expects annual earnings of $1.40 to $1.50 a share, excluding some items, according to a statement Tuesday. It had previously predicted a range as high as $1.90. The company also named Chief Innovation Officer Roger Rawlins as its next CEO. The executive will take the job on Jan. 1, when Michael MacDonald steps down from the post.
DSW, based in Columbus, Ohio, has suffered from slower traffic and sluggish women’s footwear sales. The company has been working to increase margins by cutting down on clearance events, but the strategy has has taken a further toll on sales. Unseasonably warm temperatures also have hurt results, DSW said, because there’s less demand for boots.
“Notwithstanding the challenging retail environment, I am confident we have the right plan -- and that Roger is the right leader -- to continue executing our strategy," Jay Schottenstein, chairman of the company, said in Tuesday’s statement.
The shares fell 7.8 percent, or $1.92, to $22.59 in New York trading, the biggest decline since Aug. 25. DSW has declined 39 percent so far this year.