Editor's note: In an earlier version of this story, we referred to Applied Predictive Technologies by an inaccurate name. We regret the error.

I've tracked the progress of shoe retailer DSW (NYSE:DSW) since it went public last summer. The stock isn't cheap; it's now trading at roughly 30 times trailing-12-month earnings. Nonetheless, I concluded last quarter that its blended compound annual growth rate of 34.8% over the past five years (including sales, operating profits, and new units) offers ample reason to take a closer look at this concept. Its newly released fourth-quarter results suggest that business remains strong.

The company continues to see substantial strength in multiple areas of women's shoes, including dress and casual varieties. Women's boots were the strongest category, achieving a "record year" in sales, according to management. Positive women's results offset weakness in accessories, ultimately leading to 11.3% same-store sales growth for the quarter. Overall, DSW's top line grew by 22.5% year over year.

Profitability is also on the rise. Operating margins for the quarter improved 34.9 percentage points, emerging from negative territory to land at 5.8%. Management credited the improvement to both markups and continued leverage of DSW's distribution model.

Looking ahead, the company believes it is well-positioned to offer "consistent, sustainable long-term growth for shareholders." In the quarterly conference call, management indicated that it will continue to focus on women's dress and casual categories. But they seem most excited about men's shoes, having assembled a new leadership team to tackle this area. While DSW expects only evolutionary changes to its women's products, management said the changes to its men's lineup are likely to be "revolutionary."

In addition to in-store improvements, DSW executives are excited about the company's real estate strategy. DSW is using a product called Applied Predictive Technologies, which analyzes demographic dynamics on a more consistent and up-to-date level than before. Thanks to the new approach, each new store opening is performing better than its predecessors. For fiscal year 2006, DSW plans to increase its unit count by 15%, which includes opening three new markets in Seattle, Portland, and Salt Lake City.

DSW has been styling from the get-go, and little from the latest quarter suggests a performance faux pas. If you're looking for a piece of the retail biz, DSW should be on your potential shopping list.

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Fool contributor Jeremy MacNealy does not own shares of any companies mentioned.