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What: Shareholders of shoe retailer DSW
So what: For the quarter, DSW reported an 11% increase in sales to $558.6 million with same-store sales, a more important metric of overall retail health, jumping a robust 7.6%. DSW's adjusted profit came in at $0.98. These figures compare favorably to Wall Street's expectation for a profit of $0.90 on sales of $548.1 million. DSW once again held to its recent tradition and boosted its full-year EPS forecast to $3.25-$3.40 from its prior range of $3.20-$3.25 and forecast same-store sales increases of 3% to 5% this year. Finally, what would a great report be without a 20% dividend hike to $0.18 per quarter from $0.15?
Now what: Like I said, DSW absolutely crushed investors' expectations, and it's not planning on slowing down anytime soon. With plans to open another 25 stores by the end of the third quarter, don't be surprised if expenses rise considerably, but huge dividends will begin to be reaped from the expansion by as early as the fourth quarter.
The trend in shoe sales is unmistakable right now as I noted yesterday when looking at the strength behind Foot Locker
Craving more input? Start by adding DSW to your free and personalized watchlist so you can keep up on the latest news with the company.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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