For the quarter ended April 30, the footwear and accessories retailer reported today net income of $39.9 million, or 89 cents a share, compared to net loss of $38.1 million, or $1.74 a share last year. The year-ago results included a $77.7 million charge related to the acquisition of Retail Ventures Inc.
Excluding those acquisition charges, DSW posted an adjusted profit of $44.1 million, or 98 cents a share.
Net sales increased 10.9% to $558.6 million. Sales increased 10.9% to $558.6 million compared to last year’s first quarter sales of $503.6 million. Comparable store sales increased by 7.6% on top of a 10.8% increase a year ago.
Those results easily topped analysts’ average estimate for earnings of 90 cents a share on revenues of $548.09 million.
Gaining Market Share in Accessories
“Earnings were at record levels despite absorbing incremental costs related to the acceleration in our store expansion,” said Mike MacDonald, president/ceo.”Solid execution on our strategy has led to continued strength in our business performance, and provides us with a strong platform for sustained growth.”
DSW saw gains in brand name merchandise and expanded market share in accessories and men’s.
“Our new stores continue to perform well and we are on track to open 35 to 40 new stores in 2012,” MacDonald said. “We are confident that we will meet our objective of another year of profitable growth and as such as we are raising our full year guidance to $3.25 to $3.40, an increase of 5 cents over our prior guidance of $3.20 to 3.35.”
The company also projected comparable store sales to increase in the range of 3% to 5%, compared to earlier guidance for an increase in the 2% to 4% range. Analysts’ consensus expects DSW to earn $3.31 a share for the year.
The retailer also raised its quarterly dividend 20% to 18 cents a share.