DSW Reverses Year-Ago Loss

DSW Reverses Year-Ago Loss
DSW

Shares of DSW Inc. jumped 8 percent Tuesday morning as the firm turned in a healthy quarter and raised its guidance.

For the period ended April 28, the Columbus, Ohio-based firm earned an income of 89 cents a share, versus analysts’ expectations for 90 cents, as polled by Yahoo Finance. DSW subsequently reversed the loss of $1.74 a share it incurred last year.

Adjusted for the impact of items related to the merger with Retail Ventures Inc., earnings per share handily topped estimates at 98 cents, an increase of 12.6 percent from adjusted EPS of 87 cents last year.

Reported net income rose to $39.9 million, versus a loss of $38.1 million a year ago. Revenue advanced 10.9 percent to $558.6 million, from $503.6 million, buoyed by a comparable-sales increase of 7.6 percent.

DSW raised its full-year EPS guidance to $3.25 to $3.40, up from its prior guidance of $3.20 to $3.35. Comp sales are projected to increase in the range of 3 percent to 5 percent, compared with earlier guidance for an increase of 2 percent to 4 percent.

“Our strong start to the year [is] further validation of the increasing preference for DSW by our customers and the strong execution of our strategies by our DSW team,” Mike MacDonald, president and CEO of DSW, said in a statement. “Our new stores continue to perform well and we are on track to open 35 to 40 new stores in 2012.”

DSW’s cash and cash equivalents stood at $76.5 million at quarter’s end.

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