DSW ends bad day by revealing new CEO Thursday, March 26, 2009 3:10 AM

DSW ends bad day by revealing new CEO
Thursday, March 26, 2009 3:10 AM
By Marla Matzer Rose

THE COLUMBUS DISPATCH
DSW disappointed with fourth-quarter earnings results that it released before the market opened yesterday, then surprised with the announcement of a new chief executive after the market closed.

After a national search, the Columbus-based shoe retailer appointed retail veteran Michael MacDonald as president and CEO. When he joins DSW in April, MacDonald will take over the CEO title from Jay Schottenstein, who will remain chairman.

Schottenstein praised MacDonald's "strong background and leadership skills" in a statement. MacDonald most recently was chairman and CEO of Shopko Stores, and previously held posts with department stores including Saks Fifth Avenue and Marshall Fields.

Before the 5 p.m. announcement, DSW shares closed down 7.5 percent, at $9.22, after the company missed earnings estimates and swung to a loss in the quarter that ended Jan. 31. Fewer shoppers and a 7.2 percent decline in same-store sales contributed to the results.

DSW said it expects another same-store sales drop in fiscal 2009, but it declined to provide full-year earnings guidance "given the uncertainty in the macroeconomic environment."

Shares of DSW parent company Retail Ventures, which also controls the Filene's Basement discount chain, also took a hit yesterday. They fell 16.7 percent to $1.90.

mrose@dispatch.com