DSW raises outlook as sales improve

posted: 43 DAYS 1 HOUR AGO

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COLUMBUS, Ohio -Footwear retailer DSW Inc. raised its full-year profit outlook, citing better-than-expected sales as more shoppers took advantage of its discount prices on brand name and designer shoes for men and women.

The company said it now expects earnings of 70 cents to 80 cents per share for its year ending in January, up from a previous forecast of 37 cents to 45 cents per share, issued in August. Excluding one-time items, analysts polled by Thomson Reuters expect a profit of 44 cents per share. This is the second time this year that the company has raised its outlook.

Shares of DSW advanced $2.52, or 14.3 percent, to $20.18 in afternoon trading, after touching a 52-week high of $21.29.

The company said it anticipates sales at stores open at least a year, a key measure of a retailers financial health, will climb 6 percent to 8 percent in the third quarter ending Oct. 31, partly on increased traffic.

The company expects flat full-year sales at stores open at least a year, compared with previous expectations of a mid-single digit decrease.

Despite a strong third-quarter outlook, DSW said it remains cautious about the fourth quarter and believes the economy will remain "challenging."

While top retailers managed a gain in September for the first time in more than a year, analysts said shoppers still expect discounts and bargains. Analysts said that could mean a slow recovery overall for retailers and the economy.

DSW operates 306 stores in 39 states and supplies footwear to 357 leased locations in the U.S.

2009-10-15 13:47:44