Comparable sales decreased 7% compared to last year's 0.7% increase.
Reported gross profit increased by 50 bps, driven by a significant reduction in markdowns and favorable sourcing costs, partially offset by the expected deleverage in occupancy expense, the increased mix of acquisition revenues, and 10 bps of inventory step up costs related to Ebuys.
Moving further down the income statement, reported operating expenses improved by 50 bps, with reductions in store related expenses and corporate overhead, partly offset by 20 bps from the amortization of Ebuys intangibles and restructuring expenses.
Cash, short-term and long-term investments totaled $287 million compared to $330 million the previous year. Meanwhile, inventories were $500 million compared to $484 million last year, including $31 million from Ebuys. On a cost per square foot basis, DSW inventories declined by 8%.
Looking ahead into fiscal year 2018, the company expects to earn $1.45-1.55 per share, excluding non-recurring items, which falls in-line with current expectations. Meanwhile, revenue is expected to grow +3-5% to approximately $2.79-2.85 billion, which also fell in-line with expectations; comps are expected to come in flat to down low single digits vs slightly positive estimates.
Guidance includes the estimated impact from the discontinuation of the company's leased business with Gordmans up to $0.10 per share.