NEW YORK (TheStreet) -- Shares of DSW Inc. (DSW) - Get Report are higher by 12.62% to $31.95 in pre-market trading on Tuesday after the company reported an increase in net income for the 2014 second quarter to $34.3 million, or 38 cents per diluted share, compared to $33.7 million, or 37 cents per diluted share, for the year-ago period.

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The designer shoe discount retailer said adjusted net income for the most recent quarter was $33.6 million, or 37 cents per share, which beat the expectations of analysts polled by Thomson Reuters of 32 cents per share.

DSW's sales grew 4.5% to $587 million from $562 million in the 2013 second quarter.

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Analysts were expecting DSW to post $564.84 million in revenue in the latest quarter.

Separately, TheStreet Ratings team rates DSW INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate DSW INC (DSW) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself."

You can view the full analysis from the report here: DSW Ratings Report

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