DSW Receives Lift and Enjoys a 52-Week High

DSW (NYSE:DSW), the footwear and accessories retailer, moved up after the private equity firm Leonard Green & Partners earlier Tuesday disclosed that it had obtained 1.3 million shares of DSW as of September 30th. The PE firm had asked that its position in DSW be kept confidential, but the confidentiality of the filing expired on November 28th. The large position held by Leonard Green and his request for confidentiality might be fueling chatter that it may be interested in acquiring DSW. Also likely giving the stock a boost is that William Blair began coverage with an Outperform earlier Tuesday. Analyst Amy Noblin wrote to investors that the firm’s unique combination of large stores, vast footwear assortment, and affordable prices afford it a competitive advantage, adding that “Numerous” factors could drive DSW’s sales and margins higher in 2013 and beyond.” Additionally, she says that the retailer’s earnings are likely to rise between 15 and 20 percent over the next several years. Meanwhile, DSW announced earlier Tuesday that its fourth quarter dividend of 18 cents per share would be paid on December 17th, rather than in March, as has been usual in the past.  Shares closed up 4.03 percent on the day at $70.52, having been traded in a 52-week range of $40.54 to $69.35.

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