DSW Inc. (NYSE: DSW) second quarter earnings for the fiscal year beat estimates and sent shares jumping over 20 percent after open on Tuesday.
The footwear retailer posted sales increase of 3.3 percent to $680.4 million, while comparable sales increased 0.6 percent. Second quarter profits were $28.6 million, or 35 cents a share, compared to $25 million, or 30 cents a share, the previous year’s same quarter. Thomson Reuters consensus called for an EPS of $0.29 and revenue of $666.1.
On Tuesday, The Board of Directors approved a new $500 million share repurchase authorization. Since 2013, DSW has returned to shareholders close to $600 million in dividends and share repurchases.
Roger Rawlins, Chief Executive Officer stated, "We were pleased to report our first positive comp quarter since 2015. This resulted in a healthy increase in regular priced sales and improvements across all selling metrics. With our mission to inspire self-expression, these results demonstrate how our strategic direction is resonating with the DSW customer."
DSW along with many other retailers have been facing plummeting sales due to the fierce competition against major eCommerce giants that dominate the retail market. Over four years ago, DSW shares hit an all time high, since then shares have been declining.
"We are deepening our customer connection with unique product and meaningful experiences that will define Designer Shoe Warehouse as the trusted authority for all things footwear. The current retail consolidation provides significant opportunity to acquire market share, and in the next 12 months, we will unveil several exciting new initiatives that will inspire emotional loyalty with the DSW brand. At the same time, we are building the infrastructure to mobilize inventory across all of our brands and enable us to better serve our customers. We are confident these initiatives will grow sales, cash flow and profitability long-term," Mr. Rawlins concluded.
DSW’s full year outlook remained the same. The company expects adjusted earnings in the range of $1.45 to $1.55 per diluted share.