Retail Ventures, Inc. Reports First Quarter Operating Results

COLUMBUS, Ohio, June 16 /PRNewswire-FirstCall/ -- Retail Ventures, Inc. (NYSE:
RVI) today announced its consolidated financial results for the first quarter
ended May 2, 2009.

On April 21, 2009, Retail Ventures sold all of the outstanding capital stock
of Filene's Basement to FB II Acquisition Corp., a newly formed entity owned
by Buxbaum Holdings, Inc. On May 4, 2009, Filene's Basement filed for
bankruptcy protection.

-- The loss from continuing operations for the quarter ended May 2, 2009
was $51.9 million on net sales of $385.8 million, compared to income
from continuing operations of $45.9 million on net sales of $366.3
million for the quarter ended May 3, 2008. DSW same store sales
decreased 4.7% during the first quarter of fiscal 2009 versus a
decrease
of 5.4% last year.

-- Diluted loss per share from continuing operations attributable to
Retail
Ventures, Inc. common shareholders was $1.12 for the quarter ended May
2, 2009 compared with diluted earnings per share from continuing
operations attributable to Retail Ventures, Inc. common shareholders
of
$0.82 per share last year.

The Company believes that the non-cash accounting charge associated with the
change in fair value of derivative instruments is not directly related to its
retail operations and is therefore providing supplemental adjusted results
that exclude this item. This non-GAAP financial measure should facilitate
analysis by investors and others who follow the Company's financial
performance. A reconciliation of non-GAAP results follows:

Fiscal Quarter Ended
------------------------
May 2, May 3,
2009 2008
------------------------
(dollars in thousands)
Operating (loss) profit:
Non-GAAP operating (loss) profit $(46,688) $16,006
Change in fair value of derivatives (1,388) 37,168
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GAAP operating (loss) profit $(48,076) $53,174
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(Loss) income from continuing operations
attributable to Retail Ventures, Inc. common
shareholders:
Non-GAAP (loss) income from continuing
operations $(53,142) $4,935
Change in fair value of derivatives (1,388) 37,168
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GAAP (loss) income from continuing
operations, net of tax $(54,530) $42,103
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Diluted (loss) income per share from
continuing operations attributable to
Retail Ventures, Inc. common shareholders:
Non-GAAP diluted (loss) income per share $(1.09) $0.10
Change in fair value of derivatives (0.03) 0.72
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GAAP diluted (loss) income per share from
continuing operations $(1.12) $0.82
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Retail Ventures, Inc. is a leading off-price retailer operating as of May 2,
2009, 303 DSW shoe stores in 38 states. DSW also supplies shoes, under supply
arrangements, to 365 locations for other retailers in the United States and
operates dsw.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995
Any statements in this release that are not historical or current facts are
forward-looking statements. All forward-looking statements in this release are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These statements involve known and unknown
risks, uncertainties and other factors that could cause our future financial
performance in fiscal 2009 and beyond to differ materially from those
expressed or implied in any such forward-looking statements. Certain of these
risks and uncertainties are described in the "Risk Factors" section of the
Company's latest quarterly or annual report, as filed with the SEC. These
factors include, but are not limited to: DSW's success in opening and
operating new stores on a timely and profitable basis; continuation of DSW's
supply agreements and the financial condition of its leased business partners;
maintaining good relationships with our vendors; our ability to anticipate and
respond to fashion trends; fluctuation of our comparable store sales and
quarterly financial performance; the effect of bankruptcy filings made by
Value City and Filene's Basement; the impact of the disposition of Filene's
Basement and of a majority interest in Value City and the reliance on
remaining subsidiaries to pay indebtedness and intercompany service
obligations; the risk of Value City and Filene's Basement not paying us or its
other creditors, for which Retail Ventures may have some liability; the impact
of Value City and Filene's Basement on our liquidity; disruption of our
distribution operations; our dependence on DSW for key services; the success
of dsw.com; failure to retain our key executives or attract qualified new
personnel; our competitiveness with respect to style, price, brand
availability and customer service; declining general economic conditions;
liquidity and investment risks related to our investments; and DSW's ability
to secure additional credit upon the termination of its existing credit
facility. Additional factors that could cause our actual results to differ
materially from our expectations are described in the Company's latest annual
or quarterly report, as filed with the SEC. Any forward-looking statement
speaks only as of the date on which such statement is made. The Company
undertakes no obligation to revise the forward-looking statements included in
this press release to reflect any future events or circumstances.

RETAIL VENTURES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)

May 2, January 31,
2009 2009
---- ----

ASSETS
Cash and equivalents $103,339 $94,308
Restricted cash 10,262 261
Short-term investments, net 81,402 101,404
Accounts receivable, net 7,652 7,474
Inventories 278,229 244,008
Prepaid expenses and other assets 24,008 27,249
Deferred income taxes 26,543 22,243
Current assets held for sale 66,678
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Total current assets 531,435 563,625
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Property and equipment, net 233,084 236,355
Goodwill 25,899 25,899
Conversion feature of long-term debt 76,417 77,761
Deferred income taxes and other assets 9,048 11,329
Non-current assets held for sale 38,793
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Total assets $875,883 $953,762
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LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable, net $120,027 $96,213
Accrued expenses 109,467 77,064
Warrant liability 6,345 6,292
Current maturities of long-term debt 250 250
Current liabilities held for sale 76,030
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Total current liabilities 236,089 255,849
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Long-term obligations, net of current
maturities 128,104 127,576
Other noncurrent liabilities 119,862 109,290
Deferred income taxes 28,726 29,806
Non-current liabilities held for sale 36,055

Total Retail Ventures' shareholder's equity 187,483 222,614
Noncontrolling interests 175,619 172,572
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Total shareholders' equity 363,102 395,186
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Total liabilities and shareholders' equity $875,883 $953,762
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RETAIL VENTURES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(unaudited)
Thirteen Thirteen
weeks ended weeks ended
May 2, May 3,
2009 2008
---- ----
Net sales $385,846 $366,264
Cost of sales (217,600) (211,098)
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Gross profit 168,246 155,166
Selling, general and administrative
expenses (214,934) (139,160)
Change in fair value of derivative
instruments (1,388) 37,168
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Operating (loss) profit (48,076) 53,174
Interest expense, net (2,744) (643)
Other-than-temporary impairment charge
on investments (395)
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(Loss) income from continuing operations
before income taxes (51,215) 52,531
Income taxes expense (666) (6,622)
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(Loss) income from continuing operations (51,881) 45,909
Income (loss) from discontinued operations 10,658 (12,952)
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Net (loss) income (41,223) 32,957
Less: net income attributable to the
noncontrolling interests (2,649) (3,806)
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Net (loss) income attributable to
Retail Ventures, Inc. $(43,872) $29,151
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Basic (loss) earnings per share from
continuing operations attributable to
Retail Ventures, Inc. common shareholders $(1.12) $0.87
Diluted (loss) earnings per share from
continuing operations attributable to
Retail Ventures, Inc. common shareholders $(1.12) $0.82
Basic earnings (loss) per share from
discontinued operations attributable to
Retail Ventures, Inc. common shareholders $0.22 $(0.27)
Diluted earnings (loss) per share from
discontinued operations attributable to
Retail Ventures, Inc. common shareholders $0.22 $(0.25)
Basic (loss) earnings per share attributable to
Retail Ventures, Inc. common shareholders $(0.90) $0.60
Diluted (loss) earnings per share attributable to
Retail Ventures, Inc. common shareholders $(0.90) $0.56
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Basic shares used in calculation 48,692 48,639
Diluted shares used in calculation 48,692 51,622
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Amounts attributable to Retail Ventures, Inc.
common shareholders:
(Loss) income from continuing operations,
net of tax $(54,530) $42,103
Discontinued operations, net of tax 10,658 (12,952)
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Net (loss) income $ (43,872) $ 29,151
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SOURCE Retail Ventures, Inc.

Jim McGrady, Chief Financial Officer of Retail Ventures, Inc.,
+1-614-238-4105