Aug 21 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
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.