DSW 4Q Profit Soars, Trumps Street

By Retail FOXBusiness

Shoe retailer DSW (DSW) reported sharply higher fourth-quarter profit and sales on Tuesday that topped Wall Street expectations.

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The company attributed the improvement to broad-based sales growth across its key categories and geographic regions. During the quarter, DSW launched a mobile website and started selling kids’ shoes online.

“We again posted solid results in the fourth quarter, with our performance driven by continued product excitement, compelling pricing and an efficient shopping experience,” DSW chief executive, Mike MacDonald, said in a statement.

The Columbus, Ohio-based company reported net income of $19.4 million, or 37 cents a share, compared with a year-earlier $200,000, or a penny a share.

Excluding one-time items, DSW earned 51 cents, ahead of average analyst estimates in a Thomson Reuters poll of 49 cents.

Revenue for the three months ended Jan. 28 was up 9.7% to $513.7 million, beating the Street’s view of $511.2 million. Comparable sales were up 5.6%.

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Looking ahead, the retailer says it is well-positioned to continue pursuing growth strategies, including the opening of 35 to 40 new stores this year, and looks forward to another year of profitable growth.

The shoemaker sees 2012 earnings in the range of $3.20 to $3.35 a share, ahead of current average estimates of $2.24.

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