Shares of discount shoe retailer DSW Inc. (DSW) soared Tuesday, Dec. 11, after the company reported stronger-than-expected fiscal third-quarter results and raised its full-year guidance.
DSW shares were up 9.4% to $25.30 on Tuesday. The stock had risen as much as 16% before the stock market opened.
The company reported net income of $39.3 million, or 48 cents a share, for the three months ended Nov. 3, up from $4.01 million, or 5 cents a share, in the year-earlier period. Adjusted per-share earnings came to 70 cents, ahead of the FactSet consensus of 52 cents.
Revenue rose to $833 million from $709.7 million, also ahead of the FactSet consensus of $795 million. Same-store sales rose 7.3% vs. the 5.1% FactSet consensus estimate.
The nationwide rollout of DSW kids coinciding with the company's most successful back-to-school season in its history and its acquisition of Canadian-operated retail shoe chain Town Shoes "delivered the best results in the last five years," CEO Roger Rawlins said in a statement.
DSW also raised its full-year adjusted guidance to a range of $1.70-$1.85 a share from $1.60-$1.75 a share. It said it now expects revenue to grow 12%-14% in the full year, compared with prior guidance of a 6%-9% gain.