Footwear and accessories retailer, DSW Inc. (DSW - Free Report) , recently announced the opening of one store each in Lafayette, LA and Baltimore, MD on Oct 3.
Through its latest stores, this Zacks Rank #2 (Buy) stock will offer a wide variety of designer shoes, sandals and boots for men, women and kids at discounted prices. Including these two stores, DSW will operate 385 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 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 like, Foot Locker, Inc (FL - Free Report) , J. C. Penney Company Inc. (JCP - Free Report) and Macy’s Inc. (M - Free 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 also attract new buyers.
Recently, DSW reported second-quarter fiscal 2013 results, wherein earnings increased 47% to 97 cents a share and surpassed the Zacks Consensus Estimate of 80 cents. The earnings beat was 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 revenues are expected to grow by 5% to 7%.