Shoe and accessories seller DSW (DSW) reported better-than-expected second-quarter earnings and sales and reaffirmed its fiscal 2012 outlook on Tuesday, sending shares of the retailer up more than 5.4% to life-time highs.
The retail chain said it plans to open another 27 stores in the second half of the year and feels it is “well positioned for solid growth in fiscal 2012 and beyond.”
The company reaffirmed its fiscal-year earnings and comparable-store sales guidance for the 12-month period ending Feb. 2.
DSW sees full-year earnings in the range of $3.25 to $3.40 a share, bracketing the consensus of $3.28, and said it continues to expect a mid-single digit comparable-store sales increase.
For the second quarter, the Columbus, Ohio-based retailer posted net income of $29.3 million, or 65 cents a share, compared with a year-earlier profit of $139.9 million, or $3.96 a share.
The latter included a net benefit of $106.2 million related to the merger with RVI, which closed in May 2011.
Adjusted income of 66 cents a share, compared with 74 cents a year ago, was ahead of average analyst estimates of 62 cents in a Thomson Reuters poll.
Revenue for the three months ended July 28 climbed 7.5% to $512.2 million from $476.3 million a year ago, topping the Street’s view of $510.9 million. Comparable-store sales grew by 4.2%.
“Our second quarter results surpassed our updated guidance and our performance for the first six months of the year is on track with our annual earnings target,” DSW Chief Executive Officer Mike MacDonald said in a statement. "We ended the season with inventory in good shape in terms of level, content and currency.”