UPDATE 1-DSW Q2 beats market expectations, reaffirms outlook
August 28th, 2008 | by admin |(Recasts; adds details)
Aug 28 (Reuters) – Footwear retailer DSW Inc (DSW.N: Quote, Profile, Research, Stock Buzz)reported better-than-expected quarterly results, with a 67percent rise in earnings, helped by higher merchandise marginrates.
The Columbus, Ohio-based company earned $11.0 million, or25 cents a share, compared with $6.5 million, or 15 cents ashare, a year earlier.
Sales rose to $357.2 million from $348.7 million.
Analysts on average expected the company to earn 10 cents ashare, before special items, on revenue of $350.28 million,according to Reuters Estimates.
However, quarterly same-store sales for the company, whichcurrently operates 278 stores, and plans to open at least 35new ones during the year, fell 6.9 percent.
DSW, which sells discounted brand-name footwear for men andwomen, reaffirmed its yearly outlook of earnings of 75 cents to85 cents a share. It also expects its annual same-store salesfor the fiscal year in negative mid-single digits.
Analysts on average expected the company to earn 78 cents ashare, before special items, on revenue of $1.45 billion,according to Reuters Estimates.
Shares of the company closed at $14.95 Wednesday onNasdaq. (Reporting by Nivedita Bhattacharjee in Bangalore; Editing byJarshad Kakkrakandy)