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Footwear and accessories retailer, DSW Inc. (DSW - Snapshot Report) recently announced the opening of two stores in New York City this fall. DSW already has three stores in the particular city.

The outlets will be located at 125th Street, Harlem and Bay Plaza in the Bronx. These two stores are slated to open on Oct 11 and Oct 31, respectively.

Through these new stores, this Zacks Rank #1 (Buy) stock will offer a wide variety of designer shoes, sandals and boots for men, women and kids at a discount. As of Oct 11, 2013, DSW will be operating 390 stores in 42 states, the District of Columbia and Puerto Rico.  

Of late, DSW has been extensively using its cash flow to expand throughout the United States. We believe that the company’s aggressive store expansion plan indicates the growing demand and popularity of its designer shoes and accessories. Moreover, DSW’s wedding shop collection provides exclusive assortments for bridal parties and special occasions, which distinguishes it from peers like Foot Locker, Inc (FL - Snapshot Report), J. C. Penney Company Inc. (JCP - Analyst Report) and Macy’s Inc. (M - Analyst Report).

Apart from offering a wide range of designer shoes, DSW runs a free, award-winning loyalty program – DSW Rewards. The program, which issues certificates to customers for future purchases, not only helps retain customers but attracts new buyers as well.

Recently, DSW reported second-quarter fiscal 2013 results, wherein earnings increased 47% to 97 cents per share and surpassed the Zacks Consensus Estimate of 80 cents. The earnings beat was on the back of prudent inventory management and cost containment. Net sales rose 9.7% to $562 million, whereas comparable-store sales increased 4.4%.

Management now expects fiscal 2013 earnings per share of $3.60–$3.80, up from $3.40–$3.60 forecasted earlier. Comparable-store sales are projected to increase in the low single-digit range, while revenues are anticipated to grow by 5%–7%.

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