DSW puts best foot forward

Discount footwear retailer DSW topped analysts’ predictions for the second quarter fueled by an unexpected increase in same-store sales.



Net income was $28.6 million, or 35 cents a share, in the quarter that ended July 29, compared with $25 million, or 30 cents a share, in second quarter 2016.



Sales rose 3.3% to $680.4 million. Same-store sales edged up 0.6%, the first positive comp quarter since 2015. Analysts had expected same-store sales to fall 2%.



"The current retail consolidation provides significant opportunity to acquire market share, and in the next 12 months, we will unveil several exciting new initiatives that will inspire emotional loyalty with the DSW brand," said Roger Rawlins, CEO. “At the same time, we are building the infrastructure to mobilize inventory across all of our brands and enable us to better serve our customers. We are confident these initiatives will grow sales, cash flow and profitability long-term profitability."



On the company's quarterly call, Rawlins discussed DSW's store of the future concept, located at 1200 Polaris Parkway in Columbus, Ohio. The store, which is still in the process of being updated to the format, features an expanded selection, and will serve as a laboratory for the retailer to test new technologies, fixtures and services, including shoe rental, reported Columbus Business First.



As of August 22, 2017, DSW operates 511 stores in 43 states, the District of Columbia and Puerto Rico.