Footwear retailer DSW Inc. (DSW) nearly doubled its full-year earnings forecast, citing better-than expected sales performance, margin improvement and cost management. This is the second time the company is lifting its annual earnings forecast.
The company now sees full year earnings of $0.70 to $0.80 per share, way higher than the $0.37 to $0.45 per share projected earlier and the consensus estimate of 44 cents per share. Original projections provided in May by the company were for annual earnings of 30 cents to 35 cents per share.
Also, the company now sees flat annual comparable store sales, vs. previous projections for a mid-single digit decrease.
The retailer, which sells branded footwear at discounted prices, said it expects same store sales for the third quarter to rise 6% to 8%, due to increased traffic and conversion.
Despite issuing upbeat third quarter projections, the company said it remains cautious about fourth-quarter expectations, as it expects the economic environment to remain challenging.
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