DSW Inc. (NYSE: DSW) shares gained 17.6% to $50.78 after the shoe retailer boasted a stronger quarterly bottom line. Volume for the stock surmounted 235,000 shares, nosing out a daily average around 223,181.
The Columbus, Ohio-based footwear specialty retailer reported net sales increased 12.0% to $503.6 million from $449.5 million in the first quarter of 2010. Net income was $38.4 million, or $0.85 per diluted share on 45.3 million weighted average shares outstanding.
This included charges associated with the pending merger with Retail Ventures Inc. (NYSE: RVI) that impacted first quarter earnings per diluted share by approximately $0.02. This compares to net income of $30.2 million, or $0.67 per diluted share on 44.8 million weighted average shares outstanding, in the first quarter of 2010.
“We have had a strong start to the year, recording double-digit gains in net sales and comparable sales and a 29% increase in operating profit as compared to the first quarter last year, continuing our stellar performance from 2010,” according to CEO Mike MacDonald.
“We attribute our ongoing strength to the successful execution of our key growth initiatives, and the increasing importance and attachment to the DSW brand by consumers. During the quarter, DSW achieved balanced growth across categories and genders with accessories and men’s leading the way. Our new stores performed well and we were also pleased with the growth in our leased business division, which generated its highest quarterly sales in over four years.”
DSW Inc. is a leading branded footwear specialty retailer that offers a wide selection of brand name and designer dress, casual and athletic footwear for women and men, as well as accessories.