UPDATE 1-DSW Q1 results beat Street, backs FY10 EPS view

Tue May 25, 2010 7:28am EDT

* Q1 EPS $0.67 vs est $0.49

* Q1 net sales up 16 pct, above Street view

* Backs 2010 EPS view, comp sales view

May 25 (Reuters) - DSW Inc (DSW.N) reported a quarterly profit that beat market expectations, boosted by strong merchandise margins, and the shoe retailer backed its 2010 earnings view. The company, which sells branded footwear for men and women at discounted prices, reported net income of $30.2 million, or 67 cents a share, in the first quarter ended May 1, up from $7.1 million, or 16 cents a share, a year earlier.

Net sales at the Columbus, Ohio-based retailer rose 16 percent to $449.5 million. [ID:nASA00EDQ]

Analysts on average were expecting earnings of 49 cents a share on revenue of $441.2 million, according to Thomson Reuters I/B/E/S.

DSW also reaffirmed its 2010 earnings view of $1.65 to $1.75 a share, and comparable-store sales up about 6 percent to 8 percent.

DSW shares closed at $27.26 Monday on the New York Stock Exchange. The shares have more than doubled in the past year. (Reporting by Shradhha Sharma in Bangalore)

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