With a 12.0 percent increase in comparable store sales, DSW recorded a 12.3 percent increase in turnover to $415.1 million for the second quarter ended July 31. Net income jumped by 210 percent to $23.5 million and the operating profit was up by 235 percent to $38.1 million.
Same-store sales of men's and women's shoes were both up by double digits, while athletic saw a 9 percent increase. The gross margin rose by 3.8 percentage points to 30.3 percent, with 10-13 percent increases in all four geographic segments.
During the period, DSW enjoyed improved performances in casual, men's, technical running shoes and accessories, whereas last year boots and toning were the stand-outs. The sales momentum continued into August with strength in the boot, casual and athletic categories.
After seeing a comparable sales increase of 40 percent last year, boots are expected to be up by low single digits this year. DSW sees the toning category leveling off this fall and will keep it at about 2 percent penetration of its entire business, or about 14 percent of its athletic business. It described the category as still very important with new brands entering the category and products continuing to evolve.
The company is looking into expanding in smaller markets, which could add 50 doors to its count.
The American shoe retailer expects an increase in comparable store sales of 7-9 percent for the full year, a slight increase over the previous earnings guidance of 6-8 percent.