Another American shoe retailer, DSW, has reported a sales increase of 5.9 percent on a comparable basis for its 2nd quarter ended Aug. 4, but justified it with significant promotional activity aimed at clearing seasonal merchandise. This caused its gross margin to decline for the quarter, leading to a drop in net profit to $6.5 million from $15.3 million, in spite of an increase in total sales to $348.7 million from $301.3 million. DSW is now planning to open a total of at least 35 new stores this year instead of the previously budgeted 30 units.