DSW Starts Afresh in Lawrence - Analyst Blog

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DSW Inc . ( DSW ) - a leading footwear and accessories retailer - recovered from the effects of Hurricane Sandy and reopened its Lawrence store. The company had first opened its Lawrence store in November 2011.

Columbus, Ohio-based DSW Inc. operates 364 stores in 41 states as of December 24, 2012, and supplies footwear to 344 leased locations in the U.S. It also runs an e-commerce site and a mobile website

Earlier the company posted better-than-expected fiscal third quarter 2012 (ended October 27, 2012) financial results. The quarterly adjusted earnings per share came in at $1.02, escalating 15.9% from the comparable quarter earnings of 88 cents in the last year. Moreover, it came substantially ahead of the Zacks Consensus Estimate of 89 cents a share. Including one-time items, earnings for the third quarter stood at $1.10 per share compared with 75 cents in the prior-year quarter.

Net sales for the quarter increased 11.7% year over year to $592.7 million from $530.7 million in the year-ago quarter, due to a rise of 6.3% in comparable store sales. The company experienced growth in its comparable store sales for 13 back-to-back quarters. Moreover, DSW surpassed the Zacks Consensus Estimate of $588 million.

DSW, which competes with J. C. Penney Company Inc . ( JCP ), expects adjusted earnings per share to be in the range of $3.30-$3.40 for fiscal 2012, representing an average increase of approximately 11.7% from the prior-year earnings of $3.00 per share.

The company continues to expect comps growth in the mid-single-digits range for the full year. The guidance so provided by the company includes the impact of Hurricane Sandy.

Moreover, management disclosed that the company is planning to open a total of 39 new stores in the rest of fiscal 2012 and announced its plan of launching 25-30 new stores in fiscal 2013.

DSW currently carries a Zacks #1 Rank, implying a short-term 'Strong Buy' rating on the stock for the next 1-3 months.

DSW INC CL-A (DSW): Free Stock Analysis Report

PENNEY (JC) INC (JCP): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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