Management at footwear retailer DSW (DSW +2.55%) raised guidance 5.5% for the full year to $3.60 to $3.80 per share, and said it would split its Class A stock 2-for-1.
If approved by shareholders, DSW will issue one share of Class A stock for each Class A or Class B share outstanding. The split is expected to create a total of approximately 90.2 million shares, comprised of approximately 81.6 million Class A shares, which will continue to hold one vote per share, and 8.6 million Class B shares, which will hold eight votes per share, with the voting control of the Class B shareholders reduced from 65% to approximately 46% post-split.
The split was brought about as a result of second-quarter revenues jumping 9% from the year-ago period to $558 million as same-store sales rose 4.3% year over year with the anticipation they would continue to grow in the low-single-digit range.
In conjunction with the stock split, the board will also seek an amendment to allow DSW to increase the number of authorized Class A shares from 170 million to 250 million.
Headquartered inColumbus, Ohio, DSW operates 377 Designer Shoe Warehouse stores in 42 states, the District of Columbia, and Puerto Rico while also supplying footwear to 351 leased affiliated business group locations. The stock rose less than 1% today, closing at $77.56 per share.
