DSW Q2 sales increase 6.8 percent

For the thirteen week period ended August 1, 2015, which compares to the thirteen week period ended August 2, 2014, DSW reported sales increase of 6.8 percent to 627 million dollars compared to last year's sales of 587 million dollars. Comparable sales increased by 1.8 percent compared to last year's increase of 0.8 percent.

“We were encouraged with our accomplishments in the second quarter. Our double digit earnings growth over the prior period reflected a significant shift in favor of regular priced merchandise selling," said Mike MacDonald, President and Chief Executive Officer.

Gross profit increased 120 bps driven primarily by lower markdown activity. Operating expense rate increased by 80 bps due to higher stock and incentive compensation. Net income from continuing operations increased by 10.7 percent to 37.6 million dollars. Earnings per share from continuing operations increased by 13.5 percent to 0.42 dollar per share compared to last year's 0.37 dollar per share.

First half numbers in positive

Sales increased 8.1 percent to 1.28 billion dollars in the first half, compared to last year's sales of 1.19 billion dollars. Comparable sales increased by 3.5 percent compared to last year's decrease of 1.5 percent.

Net income from continuing operations increased by 17 percent to 85 million dollars. Earnings per share from continuing operations increased by 20.3 percent to 0.95 dollar per share compared to last year's 0.79 dollar per share.

Announces dividend, reiterates earnings guidance

DSW's Board of Directors declared a quarterly cash dividend payment of 0.20 dollar per share. The dividend will be paid on September 30, 2015 to shareholders of record at the close of business on September 18, 2015. For the fifty-two week fiscal year ending January 30, 2016, the company reiterated its earnings outlook to range from 1.80 dollars to 1.90 dollars per share.