DSW (DSW) revealed a better-than-expected improvement in second-quarter earnings on Tuesday, fueled by a rebound in sales and tighter expenses.
The Columbus, Ohio-based footwear retailer reported net income of $33.7 million, or 73 cents a share, compared with a year-earlier profit of $29.3 million, or 65 cents.
Adjusted for one-time items, including taxes and pension plan costs, earnings were 97 cents, topping average analyst estimates of 80 cents in a Thomson Reuters poll.
Revenue for the three months ended Aug. 3 increased by 9.7% to $562 million, driven by a same-store sales increase of 4.4%. The results, up from a year ago, topped the Street’s view of $559.7 million.
“Second quarter sales rebounded nicely after a difficult start to the year,” DSW Chief Executive Mike MacDonald said in a statement. “This sales bounce, coupled with excellent inventory management and prudent expense discipline, resulted in solid quarterly profit results.”
On the back of the improving trends, DSW raised its full-year earnings guidance earlier this month to $3.60 to $3.80 a share, in-line with the consensus view of $3.71.
Shares of DSW edged up about 1.7% in early trade to $82.70 on Tuesday. They have grown about 24% so far this year.