Leading footwear retailer,
) has been aggressively using its resources to expand store base in
fiscal 2012. With the intention to accomplish its plan of opening
39 new stores in fiscal 2012, the company announced three more
store openings on October 4, 2012.
The new stores are destined at different locations - Maplewood,
Minnesota, Providence, Rhode Island and Gurnee, Illinois.
DSW has already opened many new stores in the ongoing fiscal
year, with a further move to open about 26 stores in the third
quarter and one in the fourth quarter. Of the planned new store
openings through the rest of the year, the company aims at opening
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
DSW'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. Its wedding shop collection
provides exclusive assortments for bridal parties and
To attract the attention of 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 members-only offers through this
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
Columbus, Ohio-based DSW currently operates 352 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
Collective Brands Inc.
J. C. Penney Company Inc.
DSW has exceeded the Zacks Consensus Estimate earnings 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 months.
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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