DSW stepping up its game for 2015

DSW Inc. says it plans to open as many as 35 new stores this year after reporting that its profits shot up 10% in the fourth quarter.

The specialty footwear retailer reported net income of $30.8 million, up 10% from $28.1 million the same quarter a year earlier. Cost of sales grew at a slower pace than actual sales, helping boost profits.

DSW plans to open 35 stores in fiscal 2015, including eight to 10 small format stores. Sales rose 12$ to $640 million, from $572 million. CEO Mike MacDonald said same store sales, up 7.6%, were the strongest in nearly three years. In a conference call with stock analysts, MacDonald said the company began 2014 with little sales momentum that crimped overall performance. Price cuts and a broader brand assortment helped store sales, MacDonald said.

"We were gratified to report strong sales and profit growth in the fourth quarter,” MacDonald said. “Our decisive actions earlier in the year in the areas of leadership, value, and marketing produced strong results.”

For the full year, net income grew 2% to $153.3 million. Sales rose 5% to $2.5 billion from $2.4 billion.