COLUMBUS (AP) — DSW’s fiscal second-quarter net income climbed 2 percent, bolstered by improving sales and reduced expenses.
The shoe-store chain’s adjusted profit and revenue beat analysts’ estimates, and it raised its full-year adjusted earnings forecast.
The stock surged in afternoon trading.
Columbus, Ohio-based DSW earned $34.3 million, or 38 cents per share, for the period ended Aug. 2. A year earlier it earned $33.7 million, or 37 cents per share.
Excluding certain items, earnings were 37 cents per share.
That topped the average estimate of analysts surveyed by Zacks Investment Research, who expected earnings of 30 cents per share.
Operating expenses declined to $118.6 million from $129.5 million.
Revenue increased to $587.1 million from $562.1 million. Wall Street was calling for $552 million in revenue.
Sales at stores open at least a year rose 0.8 percent. This metric is a key indicator of a retailer’s health because it excludes results from stores recently opened or closed.
DSW Inc. boosted its full-year adjusted earnings outlook to a range of $1.50 to $1.65 per share. Its previous guidance was for $1.45 to $1.60 per share. Analysts polled by FactSet predict $1.55 per share.
Shares of DSW gained $2.50, or 8.8 percent, to $30.87 in afternoon trading.