For the quarter ended August 3, the footwear and accessories retailer reported net income of $33.7 million, or 73 cents a share, compared with last year’s $29.3 million, or 65 cents a share. Excluding one-time items, such as its luxury test, DSW’s adjusted earnings were 97 cents a share beating analysts’ average estimate for 80 cents.
Net revenue rose 9.7% to $562, again beating analysts’ estimate for $559.7 million in sales. Comparable store sales rose 4.4%.
“Second quarter sales rebounded nicely after a difficult start to the year,” CEO Mike MacDonald said. “This sales bounce, coupled with excellent inventory management and prudent expense discipline, resulted in solid quarterly profit results.”
For the year to date, DSW reported sales increased 8.7% to $1.2 billion. Comparable store sales increased 0.8%.
Due to the improving trends at retail, DSW raised its fiscal full year forecast to $3.60 to $3.80 a share, up from its previous range of $3.40 to $3.60 a share. Total sales are expected to grow 5% to 7% with a low single-digit range increase in comp store sales.
Analysts’ consensus expects $3.72 a share.