DSW Inc. Earnings Cheat Sheet: Beats the Street on Profit Rise

DSW Inc. (NYSE:DSW) reported net income above Wall Street’s expectations for the second quarter. DSW is a branded footwear specialty retailer in the U.S.

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DSW Earnings Cheat Sheet for the Second Quarter

Results: Net income for DSW Inc. rose to $33.7 million (74 cents per share) vs. $23.5 million (52 cents per share) in the same quarter a year earlier. This marks a rise of 43.7% from the year earlier quarter.

Revenue: Rose 14.7% to $476.3 million from the year earlier quarter.

Actual vs. Wall St. Expectations: DSW beat the mean analyst estimate of 62 cents per share. It beat the average revenue estimate of $458.3 million.

Quoting Management: “We continued our strong performance in the second quarter, delivering double-digit increases in sales and comparable sales, expansion in gross margin and solid earnings growth driven by the success of our format and our strategies,” stated Mike MacDonald, President and Chief Executive Officer, DSW Inc. “We believe our sustained momentum is a clear indication of DSW’s authority in the footwear category.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 13.1%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 16.3% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 27.2% and in the fourth quarter of the last fiscal year, the figure rose 37.9%.

The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 85 cents versus a mean estimate of net income of 75 cents per share.

Gross margins grew 2.4 percentage points to 32.7%. The growth seemed to be driven by increased revenue, as the figure rose 14.7% from the year earlier quarter while costs rose 10.8%.

Competitors to Watch: Collective Brands Inc. (NYSE:PSS), Genesco Inc. (NYSE:GCO), Foot Locker, Inc. (NYSE:FL), Shoe Carnival, Inc. (NASDAQ:SCVL), Bakers Footwear Group Inc (BKRS), The Finish Line, Inc. (NASDAQ:FINL), J.C. Penney (NYSE:JCP), Nordstrom (NYSE:JWN) and Prima Moda S.A. (NYSE:PMA).

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(Source: Xignite Financials)