With the intention to accomplish its plan of opening 39 stores
in fiscal 2012, footwear retailer
) recently announced four new store openings. The new stores are
destined at different locations - Sangertown Square Mall in New
Hartford, New York, Best Buy Shopping Center in Bridgewater, New
Jersey, Plaza at Cedar Hill in Cedar Hill, Texas and at East Town
Plaza in Madison, Wisconsin.
DSW, as a policy, prefers to open new stores in the higher
volume periods of the first and third quarter. However, against
this long-standing strategy, the company opened two
larger-than-average downtown stores during the second quarter of
fiscal 2012. Additionally, DSW relocated two stores in the second
quarter. This brings the company's total new store activity to 12
and four relocations for the first six months of fiscal 2012.
With an objective of attracting customers, DSW runs a free,
award-winning loyalty program 'DSW Rewards,' which issues
certificates to the customers for future purchases at DSW.
Moreover, customers receive member-only offers through this loyalty
Of the planned new store openings through the rest of the year,
the company aims to open 7 stores in new markets, while 20 stores
are lined up to open in the existing markets. DSW's store plans for
fiscal 2012 cover all the major geographic regions in the U.S. with
little focus on the northeast.
The company's store expansion strategy is expected to be
accretive to its top-line growth, since it offers a wide range of
designer shoes at discounted prices for both men and women. DSW's
wedding shop collection provides exclusive assortments for bridal
parties and occasions.
Columbus, Ohio-based DSW Inc. currently operates 348 stores in
41 states and also supplies footwear to 342 leased locations in the
U.S. It also runs an e-commerce site www.dsw.com and a mobile
website m.dsw.com. The company competes with
Collective Brands Inc.
J. C. Penney Company Inc.
DSW has exceeded the Zacks Consensus Estimate over the last four
quarters, and we expect the company to sustain its momentum in the
coming quarters as well. Based on the better-than-expected second
quarter results and rising earnings momentum, DSW currently has a
Zacks #2 Rank, implying a short-term Buy rating for the next 1-3
DSW INC CL-A (DSW): Free Stock Analysis Report
PENNEY (JC) INC (JCP): Free Stock Analysis
COLLECTIVE BRND (PSS): Free Stock Analysis
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