Updated from 8:17 AM.
Shares of DSW (DSW) were spiking 8.8% to $25.09 on heavy trading volume late Tuesday afternoon after the footwear retailer reported higher-than-anticipated earnings for the 2016 third quarter and increased its full-year guidance.
For fiscal 2016, the Columbus, Ohio-based company now foresees earnings per share between $1.35 and $1.45, up from its prior view of $1.32 to $1.42. Analysts surveyed by FactSet are looking for full-year earnings of $1.39 per share.
For the third quarter, DSW posted adjusted earnings of 51 cents per diluted share, topping analysts' estimates of 49 cents per share.
"After four consecutive declines, we reported a 16% increase in adjusted earnings per share this quarter. Tighter inventory management drove improvements in gross margin which, combined with effective expense management, resulted in an increase in net income," CEO Roger Rawlins said in a statement.
However, comparable-store sales declined 2.0% during the most recent period, missing analysts' expectations for a decrease of 0.6%. Last year, comparable-store sales slumped 3.9%.
Revenue rose 4.7% to $696.6 million year over year, but fell short of analysts' projections of $712.1 million.
Additionally, DSW said it has reduced clearance markdowns and is positioned to "generate more profitable sales in the holiday season."
More than 4.30 million of the company's shares changed hands so far today vs. its average 30-day volume of 1.35 million shares.