NEW YORK (TheStreet) -- DSW Inc. (DSW) stock is advancing by 4.96% to $35.95 at the start of trading on Wednesday morning, after the discount designer shoes and accessories retailer posted better that expected first quarter 2015 earnings results.
For the most recent quarter DSW said its earnings were 53 cents per share, topping the 47 cents per share analysts polled by Thomson Reuters had forecast.
Revenue grew by 9.4% for the most recent quarter to $655 million versus the $653.4 million analysts were looking for. Comparable sales were up by 5.1% year-over-year.
The company said its strong financial results were helped in part by an increase in athletic footwear sales.
"Our first quarter performance was a solid start to the spring season. Athletic footwear provided the strongest sales increase, but all major categories posted solid growth. Healthy regular priced sales and lower clearance inventory than last year drove a significant improvement in our gross profit rate. The West Coast port congestion delayed some receipts, but we released pre-buy merchandise to mitigate the impact on sales," company CEO Mike McDonald said in a statement.
Separately, TheStreet Ratings team rates DSW INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate DSW INC (DSW) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, growth in earnings per share, increase in net income and reasonable valuation levels. We feel its strengths outweigh the fact that the company shows low profit margins."