DSW Raises Full Year Outlook on Strong Q2; Expects Stock Split

DSWColumbus, OH—Bolstered by a strong sales gain in its second quarter, DSW Inc. raised Monday its full-year earnings forecast and plans to seek a 2-for-2 split of its common stock.

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.

 

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Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com