Investing.com -- Shares in DSW Inc (N:DSW) tumbled nearly 12%, as the footwear and accessories retailer replaced its CEO on Tuesday after blaming disappointing sales among its women's clothing division for restraining earnings this year.
DSW said on Tuesday that Roger Rawlins will replace Michael MacDonald as the company's CEO in a move that will be effective at the beginning of 2016. MacDonald, 63, joined DSW as its president and CEO in April, 2009, where he also served as a member of the Board Directors. Prior to joining DSW, MacDonald served as the CEO of Shopko Stores, a Wisconsin-based chain of retail stores from May, 2006 through March, 2009. Under MacDonald, company sales increased exponentially over the seven-year period.
"On behalf of the Board and everyone at DSW, I would like to thank Mike for his leadership and many contributions over the past six plus years, during which time DSW sales nearly doubled and profits increased fivefold," said Jay L. Schottenstein, Chairman of DSW's Board of Directors. "As part of our succession planning process, we are pleased to name an executive of Roger's caliber to be our next CEO. Over the past three years we have made significant strides in our evolution to a more customer-centric company, and today we have a strong platform in place. 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 to meet our customers' needs and deliver long-term value for our shareholders."
DSW also announced preliminary results for the third quarter on Tuesday for a 13-week period that ended on October 31. The company expects to finish with revenues of $665 million with a decline in comparative store sales of approximately 4%. DSW also anticipates third quarter earnings per share to be between 0.41 and 0.44, reflecting slowing U.S. retail traffic and weak sales in the company's women's footwear division.
"I am honored to have the opportunity to lead DSW at this important juncture in the Company's history. While we have made progress in transforming DSW into a robust, omni-channel retailer, we are not satisfied. We will strive to develop new and innovative opportunities to expand the reach of the DSW brand and drive shareholder value." Rawlins said in a statement.
DSW shares plunged 2.84 or 11.59% to 21.67 in after-hours.