Although online retail businesses are thriving, it's a good bet that brick-and-mortar shoe retailer DSW
So DSW is alive and growing, as evidenced by its second-quarter results. Since opening its first store in the heart of Buckeye country in Dublin, Ohio, in 1991, it has established more than 180 locations in 32 states. In the latest period alone, it increased its store count by seven, representing a 3.9% jump.
Taking a look at its fiscal-2005 Q2 numbers, we'll find that DSW is also doing a solid job of increasing sales. Comparable same-store sales rose 3.3% compared with the same period a year ago, a figure that helped increase the company's net sales by 17.8% to $276.2 million.
Net income climbed marginally by 4%, and at first glance it may appear that DSW's earnings were lagging because of operational difficulties. But that's not the case: Its operating margins increased from last year's level of 6.7% to the current level of 7.5%.
Instead, the reason for the drag on its bottom line is that DSW was spun off from Retail Ventures
Increasing sales, improving profit margins, and a clean balance sheet add up to a valid reason to add this stock to an investor's watch list. DSW is putting a good foot forward and is worthy of further consideration.
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Fool contributor Jeremy MacNealy does not own shares of any companies mentioned.