DSW 3Q profit more than doubles, lifts outlook

AP News
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Posted: Nov 24, 2009 11:25 AM

DSW Inc. said Tuesday that its third-quarter profit more than doubled as footwear sales improved.

The retailer also increased its earnings guidance for fiscal 2009, citing its year-to-date performance.

The news sent the company's stock up $1.58, or 7.7 percent, to $22.12 in morning trading. The shares hit a new 52-week high of $23 earlier in the session.

DSW earned $26.6 million, or 60 cents per share, for the period ended Oct. 31. That's up sharply from $13.2 million, or 30 cents per share, a year ago.

Analysts surveyed by Thomson Reuters, whose estimates usually exclude one-time items, forecast a profit of 46 cents per share.

Revenue climbed 14 percent to $444.6 million from $391.4 million, with sales at stores open at least a year rising 8.7 percent.

This sales figure is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.

The revenue results surpassed Wall Street's estimate for sales of $424.6 million.

DSW now expects a full-year profit of 90 cents to $1 per share, with sales at stores open at least a year up about 1 percent. Its prior forecast was for earnings of 70 cents to 80 cents per share and flat sales for stores open at least a year.

Analysts predict fiscal 2009 profit of 78 cents per share.

DSW operates more than 300 stores in 39 states as well as an online store.