DSW Inc. on Tuesday reported earnings and revenue for its second quarter that crushed analysts’ estimates and raised its full-year guidance.
The footwear retailer also announced that it would shutter its Town Shoes banner, which operates 38 stores in Canada, in order to focus on its three largest brands: DSW Designer Shoe Warehouse, Shoe Warehouse and Shoe Company. The Town Shoes stores are expected to close by the end of the year.
DSW’s revenue for the quarter ended July 29 increased 16.4% to $795 million, blowing past the $691 million analysts had expected. Same-store sales rose 9.7%, also much better than expected.
Adjusted per-share earnings came to 63 cents, easily topping analysts’ estimates of 46 cents.
"We are thrilled to report record sales and earnings results this quarter as our merchandise strategy and marketing investment fueled strong customer engagement, traffic and transaction activity, resulting in a 10% comp,” said Roger Rawlins, CEO. “The strong results we've had this spring demonstrate we're successfully activating customers and increasing lifetime value. I'm proud of the progress we're making and with our updated earnings outlook, we look forward to sales reaching $3 billion for the first time in DSW's history."
The company updated its full year outlook for adjusted earnings in the range of $1.60 to $1.75 per diluted share, compared to its previous range of $1.52 to $1.67 per diluted share.