DSW Lifts 2011 Earnings Outlook; To Accelerate Store Openings - Update

(RTTNews.com) - Footwear retailer DSW Inc. (DSW) on Tuesday raised its earnings outlook for fiscal year 2011, citing strong sales results for the months of November and December. The company also said it will open more new stores in 2012 than previously planned.

For fiscal year 2011, the Columbus, Ohio-based company now forecasts earnings in a range of $2.96 to $2.99 per share, up from the prior range of $2.90 to $2.95 per share, excluding any impact from the RVI merger and related items.

On average, eight analysts polled by Thomson Reuters expect the company to report earnings of $2.95 per share for the year. Analysts' estimates typically exclude special items.

The company also plans to accelerate new store openings in 2012 to between 35 to 40 new stores, which is ahead of its long-term goal of 15 to 20 new stores per year.

Mike MacDonald, President and Chief Executive Officer of DSW Inc said, "Based on strong November and December sales results, we expect to exceed our previous guidance. We are also pleased to announce that we will be opening more new stores in 2012 than we previously planned, the majority of which will occur in the second half of 2012."

In late November, DSW reported a turnaround to profit in the third quarter, reflecting the absence of year-ago losses on fair value of derivatives and higher revenues. The company's net income for the quarter was $53.7 million or $0.75 per share compared to loss of $3.3 million or $0.16 per share in the year-ago period. Revenues for the quarter grew 8.5 percent to $530.7 million from $489.3 million in the year-ago period.

DSW closed Monday's trading at $42.64 on a volume of 424,500 shares.

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