DSW Inc. (DSW - Free Report) – a leading footwear and accessories retailer – recovered from the effects of Hurricane Sandy and reopened its Lawrence store. The company had first opened its Lawrence store in November 2011.
Columbus, Ohio-based DSW Inc. operates 364 stores in 41 states as of December 24, 2012, and supplies footwear to 344 leased locations in the U.S. It also runs an e-commerce site www.dsw.com and a mobile website m.dsw.com.
Earlier the company posted better-than-expected fiscal third quarter 2012 (ended October 27, 2012) financial results. The quarterly adjusted earnings per share came in at $1.02, escalating 15.9% from the comparable quarter earnings of 88 cents in the last year. Moreover, it came substantially ahead of the Zacks Consensus Estimate of 89 cents a share. Including one-time items, earnings for the third quarter stood at $1.10 per share compared with 75 cents in the prior-year quarter.
Net sales for the quarter increased 11.7% year over year to $592.7 million from $530.7 million in the year-ago quarter, due to a rise of 6.3% in comparable store sales. The company experienced growth in its comparable store sales for 13 back-to-back quarters. Moreover, DSW surpassed the Zacks Consensus Estimate of $588 million.
DSW, which competes with J. C. Penney Company Inc. (JCP - Free Report) , expects adjusted earnings per share to be in the range of $3.30–$3.40 for fiscal 2012, representing an average increase of approximately 11.7% from the prior-year earnings of $3.00 per share.
The company continues to expect comps growth in the mid-single-digits range for the full year. The guidance so provided by the company includes the impact of Hurricane Sandy.
Moreover, management disclosed that the company is planning to open a total of 39 new stores in the rest of fiscal 2012 and announced its plan of launching 25–30 new stores in fiscal 2013.
DSW currently carries a Zacks #1 Rank, implying a short-term ‘Strong Buy’ rating on the stock for the next 1–3 months.