26 Nov DSW third-quarter results beat Wall Street expectations
Shares of DSW were up by 7 percent in early morning trading after the Columbus-based footwear and accessories retailer posted third-quarter results that beat Wall Street expectations.
Sales for the quarter increased to $670 million, up from $633 million last year at the same time, and better than analysts’ prediction of $661.5 million.
Net income was $49.6 million, or 55 cents per share, better than Wall Street expectations of 52 cents per share. Income during the third quarter last year was $55.0 million, or 60 cents per share.
Comparable store sales — a key indicator of a retailer’s health — increased by 2.6 percent compared to last year’s decrease of 0.7 percent.
The good report reflected an acceleration in sales in all major categories compared to the first half, said Mike MacDonald, president and CEO.
“We are especially encouraged by the performance of women’s footwear, which posted its first positive comparable sales increase since the second quarter of 2013,” MacDonald said. “The merchandise initiatives we began to implement at the start of the year are gaining traction.”
DSW is also beginning to see results from launching new technologies that make it easier for online customers to shop and pay for their purchases, MacDonald said.
Based on the quarterly earnings, DSW has adjusted its full-year estimate upward. The company now expects earnings to range from $1.55 to $1.65 per share, up from previous guidance of $1.50 to $1.65 per share.