Leading footwear and accessories retailer,
) has been utilizing its resources extensively in order to expand
its store base that clearly defines its strong cash position. The
company intends to open as many as 39 new stores in fiscal
On October 18, 2012, the company announced the opening of
three new stores, destined at different locations - Syosset, New
York, Charlotte, North Carolina and Fairview Heights, Illinois.
Including these stores, the company has inaugurated 33 new stores
since it entered fiscal 2012.
DSW, as policy, prefers to open more number of new stores
during the higher volume periods i.e. in the first and the third
quarter of a particular fiscal. During its second-quarter
conference call, the company communicated that it opened 12 new
stores in the first half 2012 and anticipates opening 26 new
stores in the third quarter and one in the fourth quarter. These
will include seven stores in new markets and 20 in existing
Washington D.C. seems one of the favorite spots for DSW as the
company has opened fifteen stores in the region. Management
believes that this store opening will make the city a coveted
destination for shoe lovers.
DSW's store expansion strategy signifies the strong demand for
its designer shoes and is expected to be accretive to its
top-line growth. DSW's wedding shop collection provides exclusive
assortments for bridal parties and occasions.
In order to attract more customers, DSW offers a wide range of
designer shoes at discounted prices for both men and women. The
company also 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 program.
Columbus, Ohio-based DSW Inc. operates 359 stores in 41 states
as of October 18, 2012 and supplies footwear to 344 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's fiscal
third-quarter results are expected to release on November 19,
2012. The major competitors of the company are
J. C. Penney Company Inc.
DSW currently carries a Zacks #2 Rank, implying short term Buy
rating on the stock for the next 1-3 months, on the back of
rising earnings momentum over the last four quarters.
DSW INC CL-A (DSW): Free Stock Analysis
PENNEY (JC) INC (JCP): Free Stock Analysis
MACYS INC (M): Free Stock Analysis Report
To read this article on Zacks.com click here.