What happened

Shares of DSW Inc. (NYSE:DBI) were up 21.1% as of 10:43 a.m. EDT Tuesday after the footwear retailer announced strong second-quarter 2017 results.

DSW's quarterly revenue climbed 3.3% year over year to $680.4 million, bolstered by a 0.6% increase in comparable sales. On the bottom line, that translated to 8.6% growth in adjusted earnings per share to $0.38. By comparison, analysts' consensus estimates predicted lower adjusted earnings of $0.29 per share on revenue of $666.1 million.

DSW shoe store interior with several shoppers browsing

IMAGE SOURCE: DSW.

So what

DSW CEO Roger Rawlins noted this was the company's first positive comparable-sales quarter since 2015, elaborating: "This resulted in a healthy increase in regular priced sales and improvements across all selling metrics. With our mission to inspire self-expression, these results demonstrate how our strategic direction is resonating with the DSW customer." In addition, DSW's board approved a new $500 million share repurchase authorization.

Now what

Looking ahead, DSW reiterated its full-year outlook for adjusted earnings in the range of $1.45 to $1.55 per diluted share -- well above the $1.44 per share Wall Street was modeling going into this report. Rawlins also pointed out that recent retail consolidation offers the company a "significant opportunity to acquire market share."

All things considered, this was as impressive a quarter as they come relative to the market's low expectations. With DSW shares trading near 52-week lows, I think investors are right to aggressively bid up the stock today.