DSW (NYSE:DSW) reported on Tuesday a stronger-than-expected second-quarter profit as the shoemaker continued to build its mens footwear and e-commerce portfolios, leading the retailer to lift its fiscal view.
Reflecting the strong results and the recent takeover of Retail Ventures, the company raised its 2011 guidance to a range of $2.70 to $2.85 a share. Wall Street is predicting a profit of $2.80.
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The Columbus, Ohio-based shoe seller posted a net income of $139.9 million, or $3.36 a share, compared with $26.9 million, or a dollar a share, in the same quarter last year.
Excluding one-time items, the company earned just 74 cents a share, still ahead of average analyst estimates polled by Thomson Reuters of 63 cents.
Revenue for the three months ended July 31 was $476.3 million, up 14.7% from $415.1 million a year ago, beating the Streets view of $459.4 million.
We continued our strong performance in the second quarter, delivering double-digit increases in sales and comparable sales, expansion in gross margin and solid earnings growth driven by the success of our format and our strategies, DSW chief Mike MacDonald said in a statement.
We believe our sustained momentum is a clear indication of DSW's authority in the footwear category, he said, noting the quarter marked its eighth consecutive quarter of strong comparable sales.
To help boost sales, the company increased its mens and accessories penetration while continuing to grow womens fashion footwear, MacDonald said. DSW also launched its website and kids shoes online to improve its e-commerce business.
During the quarter, DSW completed its acquisition of Retail Ventures, its largest shareholder. As a result, RVI is now a wholly-owned subsidiary of DSW.