DSW Inc. raised its guidance as it reported third-quarter results that beat estimates Tuesday.
Net income, adjusted for one-time items, was $46.6 million, or $1.02 a share for the period ended Oct. 27 at the Columbus, Ohio-based retailer — or a 17 percent improvement from adjusted net income of $39.8 million, or 88 cents, a year ago.
Revenue grew 11.7 percent to $592.7 million, from $530.7 million, on the back of a 6.3 percent increase in comparable sales.
Analysts were expecting earnings of 89 cents a share on revenue of $588.2 million as polled by Yahoo Finance — sending DSW’s shares up more than 8 percent to $67.49 in morning trading.
For the full year, DSW expects adjusted earnings per share to be in the range of $3.30 to $3.40, with comparable sales forecast to grow in the mid-single-digit range.
“We are pleased with our third quarter results. Comparable sales grew for the 13th consecutive quarter and earnings increased at a double-digit rate,” Mike MacDonald, president and CEO of DSW, said in a statement. “During the quarter, we opened a record 26 new stores. We continued to make strategic investments that will enable DSW to maintain its growth trajectory.”
Cash and cash equivalents totaled $134.3 million compared to $79 million last year.