Furthering its store expansion plans, footwear retailer
) recently announced the opening of two new stores - one at Potomac
Town Center in Woodbridge, Virginia and the other at Villaggio
Shopping Center in Fresno, California. The new stores will offer a
wide range of designer footwear and accessories to woo customers.
The company's store expansion strategy is expected to be accretive
to its top-line growth, as DSW offers a wide range of designer
shoes at discounted prices for men and women. DSW's wedding shop
collection provides exclusive assortments for bridal parties and
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
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, the company relocated two stores in the second
quarter. This brings the company's total new store activity to 12
new stores and four relocations for the first six months of fiscal
Looking ahead, the company total store opening plans for fiscal
2012 include 39 new stores, with about 26 stores slated to open in
the third quarter and one in the fourth quarter. Of the planned new
store openings through the rest of the year, the company plans to
open 7 stores in new markets, while 20 stores are lined up to open
in the existing markets. The company's store plans for fiscal 2012
cover all major geographic regions in the U.S. with little focus on
Columbus, Ohio-based DSW currently operates 344 stores in 41 states
and also supplies footwear to 342 leased locations in the United
States. The company also runs an e-commerce site www.dsw.com and a
mobile website m.dsw.com. The company competes head-to-head with
Collective Brands Inc.
J. C. Penney Company Inc.
Based on better-than-expected second quarter results and rising
earnings momentum, offset by higher preopening expenses related to
the fiscal 2012 store plans and increased pressure for a better
merchandise margin performance, DSW currently has a Zacks #3 Rank,
implying a short-term Hold rating.
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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