DSW Has Put on Its Running Shoes and Sped Up Sales Growth

NEW YORK (TheStreet) -- Footwear and accessories retailer DSW (DSW) has lately been focusing on improving same-store sales -- a closely-watched metric that looks at performances of stores opened at least one year. And that focus has shown up in DSW's recent results. Not only has DSW gotten more consumers into its stores, they're spending more, too, which bodes well for the long-term value of DSW stock.

Sure, April's retail sales data was uninspiring, which has caused some worried selling of several retail stocks and sent the SPDR S&P Retail ETF (XRT) down 1% in the past month. But April's gone. What's more important to focus on are the months and quarters ahead.

DSW was trading lower Tuesday morning, down 0.9% at $35.02. The company is due to report fiscal first-quarter earnings Wednesday before the opening bell. Although DSW shares have underperformed so far in 2015, losing more than 5% compared to 2% gains for the Dow Jones Industrial Average (DJI), that's not  the whole story. The company's same-store sales -- also known as comps -- were up 7.6% last quarter and beat estimates, which is an encouraging sign.

DSW opened 37 stores last quarter, bringing its total store count to 431, and demonstrating that the Columbus, Ohio-based chain is still building for the future. Plus, given the rate at which profit margins have begun to expand as revenue rebounds to low double-digit percentage increases, investors could do well here.

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