DSW Q2 Profit Rises On Revenue Growth - Update

(RTTNews) - DSW Inc. (DSW), a retailer of branded footwear and accessories, Tuesday reported higher profit for the second quarter, helped by a 10 percent increase in revenues.

Net income rose to $33.72 million or $0.73 per share from $29.32 million or $0.65 per share last year.

The latest results included a loss of $0.03 per share from the company's luxury test and a charge of $0.20 per share from the termination of the pension plan assumed in conjunction with the merger of Retail Ventures, Inc. in May 2011.

Adjusted net income was $44.6 million or $0.97 per share, while it totaled $30.1 million or $0.66 per share a year ago.

On average, fifteen analysts polled by Thomson Reuters expected earnings per share of $0.80 for the second quarter. Analysts' estimates typically exclude one-time items.

Sales increased 9.7 percent to $562.06 million from $512.22 million. Analysts expected the company to report revenues of $559.69 million for the quarter.

Comparable sales increased 4.4 percent, compared to a 4.2 percent increase during the thirteen week period ended July 28, 2012.

Mike MacDonald, CEO, said, ''Second quarter sales rebounded nicely after a difficult start to the year. This sales bounce, coupled with excellent inventory management and prudent expense discipline, resulted in solid quarterly profit results."

Further, the company said that on August 22, it declared a quarterly cash dividend payment of $0.25 per share, payable on September 30 to shareholders of record on September 20.

The firm has called a special shareholder's meeting to approve the proposed 2-for-1 stock split on October 14. Shareholders of record as of August 16 will be entitled to vote.

As the retailer had announced on August 5, it now sees full-year earnings in the range of $3.60- $3.80 per share compared to previous expectation of $3.40 to $3.60 per share.

Excluding sales of $32 million from fifty-third week in fiscal 2012, full year revenue growth for fiscal 2013 is expected in the range of 6 to 8 percent. Comparable sales growth is estimated in the low single digit range. Analysts expect the company to report earnings of $3.71 per share on revenues of $2.43 billion.

DSW closed at $81.32 on Monday and added 2 percent in pre-market activity.