DSW Q2 profit jumps on acquisition and rising sales
Columbus, Ohio -- DSW said Tuesday that its second-quarter profit soared, boosted by a hefty one-time gain related to its acquisition of Retail Ventures.
The results beat Wall Street expectations and the company boosted its full-year outlook.
For the quarter ended July DSW posted net income of $139.9 million, compared with $26.9 million for the same quarter last year.
Excluding the one-time gain related to the purchase of Retail Ventures, the company said it posted an adjusted profit of $33.7 million, compared with an adjusted $23.5 million in the year-ago period.
Sales rose 15% to $476.3 million from $415.1 million. Same-store sales were up 12.3%. The results beat Wall Street predictions.
“During the quarter we increased our men's and accessories penetration while continuing to grow women's fashion footwear," said Mike MacDonald, president and CEO. "We also launched our mobile website and kids' shoes online to further our market share gains in the high-growth e-commerce business. Despite economic uncertainty and equity market volatility, we expect fiscal 2011 to represent another strong year of growth and increased value for all DSW stakeholders."
In May, DSW bought Retail Ventures, a company whose only operating business was its 62% stake in DSW. Retail Ventures' chairman was also the chairman and former CEO of DSW.
DSW had been a subsidiary of Retail Ventures, until DSW went public in 2005.