Although profits dipped 31 percent in the second quarter, DSW Inc. raised its full-year outlook on stronger-than-expected sales.
For the three months ended Aug. 2, the Columbus, Ohio-based company reported a net income of $7.6 million, or 17 cents a share, compared with $11 million, or 25 cents, in the second quarter of 2008. The results bested expectations of analysts polled by Yahoo Finance by 6 cents.
Sales increased 3 percent to $369.5 million from $357.2 million in the year-ago period. Same-store sales dropped 2.9 percent, compared with a 6.9 percent dip in the second quarter of 2008.
“I was somewhat encouraged by the modest improvement in our comp-store sales performance, particularly in the DSW segment,” DSW President and CEO Michael MacDonald said on a conference call. “But we continue to see a pretty challenging external environment for the balance of the year.”
Still, DSW increased its full-year outlook for EPS to 37 cents to 45 cents, from a formerly estimated 30 cents to 35 cents. Same-store sales are still expected to decrease in the mid-single digits.