For the quarter ended August 3, the footwear and accessories retailer posted a 9% gain in net sales to $558 million. (Sales exclude the company’s recent luxury initiative). Comparable store sales were up 4.3%. Analysts’ average estimate, however, expected sales of $568 million.
DSW doesn’t report its second quarter earnings until August 27, but the company raised its full year earnings forecast to to $3.60 to $3.80 a share, up from the previous range of $3.40 to $3.60 a share, excluding one-time and luxury related charges. This updated earnings guidance assumes low single digit same store sales growth for the full year, the company noted.
DSW also said it will hold a special stockholders meeting to seek approval for a 2-for-1 stock split, a move that could boost shareholder returns.
If approved by shareholders, such a split is expected to create a total of approximately 90.2 million shares, compared with the company’s current 45.1 million shares outstanding.