Footwear retailer DSW has lifted its full-year earnings guidance despite booking a 6.7% fall in third-quarter net profits.
Net income reached $50.1 million for the three months to October 27, compared to $53.7 million last year. The company said net income, adjusted for one-off items reached $46.6 million against $39.8 million the same period last year.
Sales increased 11.7% to $592.7 million, while comparable sales climbed 6.3%. Inventory levels rose 11.8% to $422 million, which was in line with expectations.
“We are pleased with our third quarter results. Comparable sales grew for the 13th consecutive quarter and earnings increased at a double digit rate,” said president and CEO Mike MacDonald.
“During the quarter, we opened a record 26 new stores. We also paid a special dividend of $2.00 per share to DSW shareholders this quarter, the second such dividend in the last 13 months. Finally, we continued to make strategic investments that will enable DSW to maintain its growth trajectory.”
The company now expects full-year adjusted earnings per share to range from $3.30 to $3.40, compared to previous guidance of $3.25 to $3.40.
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