DSW steps up, beats Q3 expectations

DSW Inc. exceeded Wall Street expectations for net income and sales in the third quarter.

Net income fell a less than expected 10% to $49.5 million from $54.9 million the same quarter a year earlier, with higher operating expenses and lower pretax income contributing to the decline.

Sales totaled $670 million compared to $633 million in the prior-year quarter and same-store sales rose 2.6%.

We were pleased with the progress we made in the quarter, particularly the improvements in top line performance. Sales in all major categories accelerated compared to first half performance,” said Mike MacDonald, president and CEO. “We are especially encouraged by the performance of women's footwear, which posted its first positive comparable sales increase since the second quarter of 2013.The merchandise initiatives we began to implement at the start of the year are gaining traction."

DSW increased its guidance for fiscal 2014 earnings per share, based on expectations of slightly positive same-store sales growth and a revenue increase.