On Tuesday, shares of discount shoe retailer DSW Inc. , which stands for Designer Shoe Warehouse, have been surging, and are currently up nearly 18% in afternoon trading after the company reported second quarter results that blew past expectations. DSW stock was up more than 20% at one point today as a result of its report.
DSW reported earnings of 38 cents per share—this number excluded three cents from non-recurring items—soaring past the Zacks Consensus Estimate of 29 cents. Revenues came in at $680.4 million, also beating our consensus estimate of $669 million.
However, the most significant part of DSW’s report was its comparable store sales, which turned positive for the first time since 2015. During the second quarter, same store sales increased 0.6% compared to last year’s 1.2% decrease.
"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,” said CEO Roger Rawlins.
DSW also reported a 27% increase in digital sales thanks to sizable growth in mobile traffic, a factor that the company is hoping will help them in the pivotal upcoming holiday shopping season. DSW is already known for its popular website and rewards membership program, and together with its increase in comps, the company looks ready to take on the next two quarters.
“Having seen the increased penetration of digital demand, we are confident that we will win this holiday selling season,” said Jared Poff, DSW’s chief financial officer, on the Tuesday earnings call, according to a FactSet transcript.
Additionally, DSW is looking to revamp its core store concept, which is the company is testing currently in Cincinnati; the plan is to increase the capacity of the store floor to 30% from 20%, creating more product choices for the customer. Now, when you walk into a DSW store, you see shelves upon shelves of shoes, a set up that can feel overwhelming and can get cluttered and messy fast.
Looking ahead, DSW reiterated its full year earnings per share guidance of $1.45 to $1.55 per share, coming in above the $1.44 per share consensus estimate.
DSW is a #3 (Hold) on the Zacks Rank, with a VGM score of ‘A.’ Year-to-date, the stock has lost well over 25% in value, while the S&P 500 has gained almost 8.5% in the same time frame.
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DSW Shares Surged on Big Earnings Beat, Positive Comps
On Tuesday, shares of discount shoe retailer DSW Inc. , which stands for Designer Shoe Warehouse, have been surging, and are currently up nearly 18% in afternoon trading after the company reported second quarter results that blew past expectations. DSW stock was up more than 20% at one point today as a result of its report.
DSW reported earnings of 38 cents per share—this number excluded three cents from non-recurring items—soaring past the Zacks Consensus Estimate of 29 cents. Revenues came in at $680.4 million, also beating our consensus estimate of $669 million.
However, the most significant part of DSW’s report was its comparable store sales, which turned positive for the first time since 2015. During the second quarter, same store sales increased 0.6% compared to last year’s 1.2% decrease.
"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,” said CEO Roger Rawlins.
DSW also reported a 27% increase in digital sales thanks to sizable growth in mobile traffic, a factor that the company is hoping will help them in the pivotal upcoming holiday shopping season. DSW is already known for its popular website and rewards membership program, and together with its increase in comps, the company looks ready to take on the next two quarters.
“Having seen the increased penetration of digital demand, we are confident that we will win this holiday selling season,” said Jared Poff, DSW’s chief financial officer, on the Tuesday earnings call, according to a FactSet transcript.
Additionally, DSW is looking to revamp its core store concept, which is the company is testing currently in Cincinnati; the plan is to increase the capacity of the store floor to 30% from 20%, creating more product choices for the customer. Now, when you walk into a DSW store, you see shelves upon shelves of shoes, a set up that can feel overwhelming and can get cluttered and messy fast.
Looking ahead, DSW reiterated its full year earnings per share guidance of $1.45 to $1.55 per share, coming in above the $1.44 per share consensus estimate.
DSW is a #3 (Hold) on the Zacks Rank, with a VGM score of ‘A.’ Year-to-date, the stock has lost well over 25% in value, while the S&P 500 has gained almost 8.5% in the same time frame.
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
Learn the secret >>