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DSW Inc. (DSW) Forges Ahead with Store Expansion Strategy

AEO URBN DSW PLCE

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Footwear and accessories retailer, DSW Inc. (DSW - Free Report) is aggressively expanding its store base. Recently, the company announced the inauguration of a new store in Round Rock, TX. Further, it unveiled its plan to open five additional stores in Savannah, GA; Port St. Lucie, FL; Wichita, KS; Holmdel, NJ; and Owings Mills, MD on Oct 6, 2016.

Of late, DSW has been extending its reach in the U.S. through the launch of stores under the company's expansion strategy. These store launches reflect the company’s commitment toward expanding its network to drive revenues higher in the coming quarters.

The new stores at Round Rock, Savannah, Port St. Lucie, Wichita, Holmdel and Owings Mills will spread across a sprawling area of 18,000 square feet, 17,000 square feet, 17500 square feet, 18,000 square feet, 18,000 square feet and 20,000 square feet, respectively.

All the outlets – except the store at Owings Mills – will accommodate 22,000 pairs of shoes on display for men, women and kids, along with accessories like bags, jewelry, scarves, socks etc. The store at Owings Mills will house 27,000 pairs of shoes on display for men, women and kids, along with accessories.

In Aug 2016, the company announced its intention to open 21 new stores between August and October. DSW will have 496 stores in 43 states, effective Oct 6, 2016. The company also supplies footwear to 389 leased locations in the U.S. Given the impressive pace at which the company is expanding store base, it is expected to reach the 500 mark soon. In fiscal 2015, it added 40 new stores in the U.S.

Zacks Rank

DSW currently carries a Zacks Rank #3 (Hold). Investors may consider better-ranked stocks such as American Eagle Outfitters, Inc. (AEO - Free Report) , The Children's Place, Inc. (PLCE - Free Report) and Urban Outfitters Inc. (URBN - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

American Eagle Outfitters delivered an average positive earnings surprise of 9.3% over the trailing four quarters and has a long-term earnings growth rate of 11.8%.

The Children's Place delivered an average positive earnings surprise of 33.1% over the trailing four quarters and has a long-term earnings growth rate of 10.3%.

Urban Outfitters delivered an average positive earnings surprise of 6.7% over the trailing four quarters and has a long-term earnings growth rate of 15%.

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