In a bid to boost shareholders' confidence in an uncertain
) recently announced a special dividend of $2.00 per share
sanctioned by its Board of Directors. This specialty retailer of
branded footwear and accessories will deploy $91 million for this
purpose, demonstrating its strong cash position and the ability to
generate healthy cash flow.
The shareholders of DSW will receive special dividend over and
above the regular dividend of 18 cents per share, which was
announced on August 22, 2012. The special dividend will be paid on
October 26, 2012 to the stakeholders of record as of October 16,
2012, whereas the regular dividend is to be paid on September 28,
2012, to the stakeholders of record as of September 18, 2012.
Management believes that this move exhibits the company's
commitment to return excess cash to its investors and enhance
shareholders' value. The announcement of special dividend is in
sync with a 16.0% rise in cash and investments to $485.0 million in
the second-quarter of 2012.
DSW also announced that it has appointed James O'Donnell, the
former CEO of
American Eagle Outfitters Inc.
), to its Board of Directors. Management remains confident on Mr.
Donnell's efficiency and eligibility, since he has sufficient
experience and a remarkable track record.
Moreover, DSW announced that it has received an amount of $7.2
million from litigation with its insurance carrier due to the
infringement of credit card data in 2005. This receipt will be
accounted as a one-time gain of about 8 cents per share. DSW will
recognize this gain as a non-recurring item that will no way impact
the adjusted earnings of the third-quarter 2012. Consequently,
management kept its previously provided earnings projection
DSW, headquartered in Columbus, Ohio is a specialty retailer
focused on branded footwear. The company operates 342 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.
DSW has topped the Zacks Consensus Estimate in the last four
quarters, and we expect the company to sustain its momentum in the
coming quarters as well. Based on its 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
AMER EAGLE OUTF (AEO): Free Stock Analysis
DSW INC CL-A (DSW): Free Stock Analysis Report
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