DSW Inc. logged double-digit increases in sales and profit for the first quarter.
For the period ended May 1, the Columbus, Ohio-based retailer earned a net income of $38.4 million, or 85 cents a share, up 27 percent from $30.2 million, or 67 cents, a year ago.
Net sales increased 12 percent to $503.6 million, from $449.5 million, as comparable-store sales advanced 10.8 percent, following a 16.2 percent increase in the corresponding quarter last year.
The firm blasted past analyst estimates, which predicted earnings per share of 75 cents on revenue of $486.6 million, as polled by Yahoo Finance.
“We attribute our ongoing strength to the successful execution of our key growth initiatives, and the increasing importance and attachment to the DSW brand by consumers,” Mike MacDonald, president and CEO of DSW, said in a statement.
“During the quarter, DSW achieved balanced growth across categories and genders, with accessories and men’s leading the way,” he added. “Our new stores performed well, and we were also pleased with the growth in our leased business division, which generated its highest quarterly sales in over four years.”
BB&T Capital Markets analyst Scott Krasik said DSW “continues to demonstrate it can perform at a high level … as other non-athletic footwear companies are beginning to slow down from tougher comps or less-compelling footwear fashion.”
DSW ended the quarter with cash and cash equivalents of $49.9 million and no debt.