Footwear retailer DSW Inc. (DSW), Tuesday reported a better-than-expected profit for the first quarter as compared to the year-ago quarter, when results were hurt by charges related to the merger with Retail Ventures Inc. DSW results were also aided by a nearly 11 percent increase in sales that topped Street estimates.
DSW also raised its outlook for fiscal year 2012, sending its shares up by about 11 percent to $61.63 - the highest in the past year.
Columbus, Ohio-based DSW reported first-quarter net income of $40 million or $0.89 per share, compared to a loss of $38 million or $1.74 per share last year.
Results for the prior-year quarter included a $77.7 million after-tax net charge related to the May 2011 merger with Retail Ventures Inc.
Excluding items, adjusted earnings for the quarter were $44 million or $0.98 per share, compared to $39.6 million or $0.87 per share last year.
On average, 8 analysts polled by Thomson Reuters expected earnings of $0.90 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter were $558.6 million, compared to $503.6 million last year. Analysts expected sales of $548.09 million for the quarter.
On a same-store basis, sales were up 7.6 percent, compared to an increase of 10.8 percent a year ago.
DSW announced a dividend increase from $0.15 per share to $0.18 per share, payable on June 29 to shareholders of record on June 19.
DSW now expects fiscal year 2012 earnings of $3.25 to $3.40 per share, compared to its prior guidance of $3.20 to $3.35 per share. Analysts currently expect earnings of $3.31 per share for the year.
The company estimates full year same-store sales to increase 3 to 5 percent, compared to its earlier guidance of 2 to 4 percent range.
DSW is trading at $61.63, up $5.83 or 10.45%, on a volume of about 1.2 million shares, on the NYSE.
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