DSW Inc.’s second-quarter net profit tripled, the company announced Tuesday.
For the period ended July 31, the Columbus, Ohio-based specialty retailer had a net income of $23.5 million, or 52 cents a share, compared with $7.6 million, or 17 cents, in the same period a year ago.
Revenue for the quarter increased 12 percent to $415.1 million, from $369.5 million in the quarter ended Aug. 1, 2009, driven by strong sales in sandals in the women’s arena and casual footwear in men’s.
Michael MacDonald, president and CEO of DSW, said women’s footwear was up 12 percent, men’s rose 15 percent and athletic increased 9 percent.
Same-store sales increased 12 percent for the period, versus a decrease of 2.9 percent last year.
DSW beat analysts’ average estimate of 47 cents a share on revenue of $415.5 million, as polled by Yahoo Finance.
The combination of a significant increase in merchandise margin and an overall decrease in occupancy expense resulted in a rise in gross profit margin to 30 percent, from 27 percent, said Douglas Probst, the firm’s EVP and CFO.
DSW said it remains on track to open 10 to 15 new stores in 2011.
“We are also working on plans to open up a few new stores in smaller markets beginning next year, which, if successful, could provide the opportunity to add at least 15 new stores in markets that were previously not on our radar,” added MacDonald in a conference call with analysts.
DSW forecast earnings per share of $1.80 to $1.95 for fiscal 2010, and an annual comp-store sales increase of between 7 percent and 9 percent.