What happened

Shares of DSW Inc. (NYSE:DSW) 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.

Steve Symington has no position in any of the stocks mentioned. The Motley Fool recommends DSW. The Motley Fool has a disclosure policy.