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Footwear and accessories retailer, DSW Inc. (DSW - Snapshot Report) recently announced the opening of a store in Greenville, S.C. The outlet will be located at 822 Woods Crossing and is slated to open on Oct 17.

Through this new store, DSW will offer a wide variety of designer shoes, sandals and boots for men, women and children at a discount. As of Oct 17, 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 distinguish 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.

DSW is scheduled to announce its third-quarter fiscal 2013 earnings on Nov 18, 2013. Our proven model shows that the company is most likely to outperform the Zacks Consensus Estimate as it has two favorable components: a Zacks Rank #2 (Buy) and a positive Earnings ESP of 2.59% (as the Most Accurate Estimate stands at $1.19 while the Zacks Consensus Estimate is pegged at $1.16).

The above view is well supported by DSW’s earnings surprise history. The company has beaten the Zacks Consensus Estimate thrice in the past 4 quarters by an average of 10.7%.

At its last earnings call, management had guided fiscal 2013 earnings per share in the range of $3.60–$3.80 while it projected revenue growth of 5% –7%.

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