DSW Inc. (NYSE:DSW) reported its second quarter financial results and reported stronger than expected results, surpassing analysts’ estimates in both revenue and earnings.
For the second quarter, DSW reported revenue of USD 795.00 Million, increasing 16.4% year over year and topping estimates by USD 105.9 Million. The Company reported an EPS of USD 63 cents, beating estimates by USD 17 cents. Comparable sales increased by 9.7% in the quarter. Reported gross profits increased by 280 bps due to a favorable merchandise margin and occupancy leverage.
Chief Executive Officer, Roger Rawlins stated, “We are thrilled to report record sales and earnings results this quarter as our merchandise strategy and marketing investment fueled strong customer engagement, traffic and transaction activity, resulting in a 10% comp. The strong results we’ve had this spring demonstrate we’re successfully activating customers and increasing lifetime value. I’m proud of the progress we’re making and with our updated earnings outlook, we look forward to sales reaching $3 billion for the first time in DSW’s history.”
The stronger upbeat revenue was a result of DSW’s integration into New Canada retail segment. Upon completion of its comprehensive review, DSW will focus on its Shoe Company, Shoe Warehouse and DSW Designer Shoe Warehouse. The acquisition is expected to generate USD 215.00 Million in revenue.
For the rest of the 2018, DSW updated its outlook. The Company now forecasts adjusted earnings in the range of USD 1.60 to USD 1.75 per share, increasing from its previous expectations of USD 1.52 to USD 1.67.
DSW shares have now increased by 54.23% this year.