Transcript for Agony of 'De-Feet': DSW Stock Tumbles
I'm Michelle Franzen in New York, New York financial markets close on Wednesday may 28 this story -- Today it's DSW designer shoe warehouse. A discount shoe store missed its earnings estimates on Wall Street did not like that one bit here to explain what happened next. Or -- of Yahoo! finance Lauren what happened to DFW did -- up by issues. -- well those discounts -- did not cooler than ink and -- to meet expectations by a long shot so did at least size three point 7% decline in sales and in comparable store sales that means. Store there opened more than a year now as for the quarter in addition. They did make 12% more net income so they made 12% wore bunny but at the end of the day that was a lot less than investors were expecting -- by about six cents per share. And in addition to that they achieve that -- cost cutting so not exactly an indication -- strength in that business -- they blame this on many other things which I'm sure we'll get you. They also lowered guidance and then had a couple of down grades today and this stock is jets. Getting hammered bad -- that as you mentioned led to some selloff as we take a look at the live stock chart walk us through it -- that -- It was really bad -- shares lost about a third of their value down about 30%. To the lowest level in two years so a really tough day for them I mean and broader markets are down today but only by a fraction of a percent. And CEO Mike MacDonald point the finger at -- aim at the bad winter. And competitive discount seen are those -- excuses. So here's the thing we've heard the excuse about really cold weather in the first quarter from a number of retailers in fact we even heard the same thing from. Another retailer today cheek as witches I've kind of mature woman's apparel store so this is common excuse that we've heard this is not anything new and challenging environment made it more promotional and and they sold more things at a discount -- -- -- -- -- profit. But here's the problem for DSW we just not competitor today at -- Brown Shoe Co. at -- naturalized or stores and also Famous Footwear. And they actually had a pretty good -- they did better than expected they said it even though -- I had a tough time with the winter weather sales did pick up in the second half of April and -- up -- outlook. Looking forward in the second quarter that they said that all that pent up demand for spring issues -- going to benefit and and their stock went to a seven year high -- and that is that compares -- sure doesn't reflect well upon. DF WN and -- execution. In stores and their ability to deal with and navigate. This factors like the cold weather and increased promotional environment so where does DSW do next. They hope for Rei neon on the getting so we Nelson we know that they lower guidance for the -- so already they're expecting. To not do you as well as they had hoped prior -- quarter's results but in addition to that. There are adjusting their line up which means -- they're gonna try to get the merchandise right and more in line with what customers want. And there also investing in their -- channel strategy which is visibly -- retail strategy that tries to utilize. Online amber from mortar more efficiently working together they also acquired or have recently credit eighty -- you. Retailers are those are kind of the strategies that they're looking at going forward -- with. Lower expectations for what they would -- Lauren -- of Yahoo! finance thank you for joining thank you Michelle you have been watching stories stocks with abcnews.com for your latest headlines. I'm Michelle France and the New York.
This transcript has been automatically generated and may not be 100% accurate.