LOS ANGELES — Strong boot sales continue to drive business at DSW Inc., said analysts.
“DSW has a very unique position within the branded footwear retailer universe, with a highly recognizable name, highly productive stores, great merchants and a bullet-proof balance sheet,” said C.L. King & Associates analyst Steven Marotta. “Plus, their everyday low-price model has earned the trust of customers [looking for value] against the macroeconomic backdrop.”
Same-store sales during the third quarter rose 5.2 percent, after also rising 10.1 percent during the third quarter of last year.
Susquehanna Financial analyst Christopher Svezia said, “Overall, I liked what I heard. The boot business is really a hallmark for them, and that keeps us encouraged about fourth-quarter trends.”
DSW’s chief marketing officer Debbie Ferrée said the double-digit comp performance in boots in the third quarter covered “everything from riding boots [to] casual boots, engineer boots and anything that had shearling or fur.”
The firm increased its full-year guidance to EPS of $2.90 to $2.95. It earned $2.40 a share in fiscal 2010.
After adjusting for the impact from the merger with Retail Ventures Inc., the Columbus, Ohio-based retailer’s third-quarter net income increased 12 percent to $39.8 million, or 88 cents a share. Revenue advanced 8 percent to $530.7 million, from $489.3 million.