UPDATE 1-DSW profit beats on higher demand for affordable branded shoes
Aug 21 (Reuters) - Footwear retailer DSW Inc's second-quarter profit beat analysts' estimates for the sixth consecutive quarter as more value-conscious customers shopped for its affordable and trendy branded shoes.
DSW, which sells shoes of brands including Prada, Nine West, Fendi and Tommy Hilfiger at discounted rates, maintained its adjusted profit forecast for fiscal 2012 and said it plans to open 27 new stores in the second half of the year.
The fact that DSW has the ability to read demand and deliver fashionable merchandise in a timely manner sets them apart from competitors, analyst Steven Marotta of CL King & Associates told Reuters.
Same-store sales, or sales at stores open for at least a year, rose 4.2 percent.
DSW posted a profit of 66 cents per share excluding items related to its merger with its largest shareholder Retail Ventures last year.
Analysts' were expecting a profit of 62 cents per share, according to Thomson Reuters I/B/E/S.
Quarterly revenue at the company, which also sells handbags and accessories, rose 7.5 percent to $512.2 million compared with analysts' expectations of $510.9 million.
The strong second-quarter results have set the company up well for the third quarter considering clearance is on plan, according to Mark Montagna of Avondale Partners LLC.
"I expect them to outperform most of the specialty retailers and at least achieve their earnings target," Montagna said.
Shares of Columbus, Ohio-based DSW which have risen more than 40 percent this year, were up about 6 percent at $64.76 on Tuesday on the New York Stock Exchange.