In a bid to expand its business, footwear retailer
) recently announced the opening of new stores in Mesquite, Texas
and West Covina, California. The new stores will offer a wide range
of designer footwear and accessories to attract 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 occasions.
With a view to attract customers, DSW runs a free, award-winning
loyalty program 'DSW Rewards,' which entitles certificates to the
customers in relation to future DSW purchases. Moreover, customers
receive member-only offers through this loyalty program.
DSW, which competes with
J. C. Penney Company Inc.
), recently posted second-quarter 2012 earnings of 66 cents per
share, which beat the Zacks Consensus Estimate of 62 cents.
However, the quarterly earnings fell 10.8% year-over-year from 74
cents reported in the comparable prior-year quarter.
Net sales jumped 7.2% to $512.2 million from $476.3 million in
the prior-year quarter and also surpassed the Zacks Consensus
Estimate of $511 million. Comps for the quarter grew 4.2%.
DSW maintains its fiscal 2012 outlook with full-year earnings in
the range of $3.25-$3.40 per share. Moreover, comps are anticipated
to increase in mid-single-digits for the fiscal 2012.
DSW, headquartered in Columbus, Ohio, operates 338 stores in 41
states and also supplies footwear to 344 leased locations in the
United States. The company also runs an e-commerce site and a
DSW has topped 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 better-than-expected second
quarter results and rising earnings momentum, DSW carries a Zacks
#2 Rank for the next 1-3 months, implying a short-term Buy
DSW INC CL-A (DSW): Free Stock Analysis Report
PENNEY (JC) INC (JCP): Free Stock Analysis
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