Footwear and accessories retailer, DSW Inc. (DSW - Snapshot Report) recently announced the opening of 5 new stores. Of the 5, 3 are slated to be opened on Sep 5, 2013 at Springfield, Ill.; Cincinnati, Ohio; and Littleton, Colo., while the remaining 2 stores at Victor, N.Y. and Norman, Okla. opened their gates to customers on Aug 29.
Through its latest store, this Zacks Rank #2 (Buy) stock will offer a wide variety of designer shoes, sandals and boots. Considering the recently announced store openings, DSW will operate 382 stores in 42 states, the District of Columbia and Puerto Rico.
Of late, DSW has been extensively using its cash flow to expand its reach throughout the United States. We believe that the company’s aggressive store expansion plans signify that its designer shoes and accessories are fast gaining popularity among consumers. Moreover, its wedding shop collection provides exclusive assortments for bridal parties and occasions and sets it apart from peers, Foot Locker, Inc. (FL - Analyst Report), J. C. Penney Company Inc. (JCP - Analyst Report) and Macy’s Inc. (M - Analyst Report).
Besides offering a wide range of designer shoes at discounted prices for both men and women, DSW runs a free, award-winning loyalty program ‘DSW Rewards,’ which issues certificates to customers for future purchases at DSW. This initiative not only helps retain customers but also attracts new buyers.
Recently, DSW came out with its second-quarter fiscal 2013 results, wherein earnings increased 47% to 97 cents a share and also surpassed the Zacks Consensus Estimate of 80 cents on the back of prudent inventory management and decent cost containment efforts. Net sales jumped 9.7% to $562 million, whereas comparable-store sales rose 4.4%.
Management now envisions fiscal 2013 earnings between $3.60 and $3.80 per share, up from a range of $3.40 to $3.60 forecasted earlier. Comparable-store sales are projected to increase in the low single-digit range, while revenue is expected to grow by 5% to 7%.