DSW Opens Three New Stores as Chain Expansion Continues - Analyst Blog
Footwear retailer, DSW Inc .'s ( DSW ) expansion strategy is in full swing as the company announced opening of three new stores on Sep 10. These stores are located in Fort Worth, TX, Eden Prairie, MN and Plattsburgh, NY.
The stores will offer a wide variety of fashionable footwear for both men and women. Since Apr 2014, the company had announced opening of 12 new stores. Apart from the above mentioned stores, the other new stores are located in South Hills PA, Santee CA, Manhasset, NY; Hyannis, MA; Laurel, MD; Washington, DC; DeKalb, IL; Ponce, PR; and Tempe, AZ.
DSW's store openings signify the company's commitment toward strengthening its network with the aim of driving top-line growth. As of Sep 10, 2014, DSW operates 415 stores in 42 states, the District of Columbia and Puerto Rico.
Meanwhile, the company is making significant investments to strengthen its international footprint, which is evident from its deal with Town Shoes of Canada. DSW closed this acquisition on May 12 and spent $68.7 million to acquire a 49.2% stake in Town Shoes.
The Town Shoes buy has proven to be a strategic one owing to its considerable access to the Canadian markets. With this takeover, DSW will gain an operating base in Canada which will help it to popularize its brand across the country. Interestingly, DSW has already started reaping gains from the Town Shoes acquisition as the latter opened two DSW outlets in Toronto in the beginning of August and has received positive response from customers so far.
Currently, DSW carries a Zacks Rank #3 (Hold). Other better ranked stocks in the retail sector worth consideration include Citi Trends, Inc. ( CTRN ), Express Inc. ( EXPR ) and Foot Locker, Inc. ( FL ). Citi Trends sports a Zacks Rank#1 (Strong Buy), while Express Inc and Foot Locker carry a Zacks Rank# 2 (Buy).
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