COLUMBUS, Ohio — DSW's model of bringing designer goods to a budget-conscious consumer continues to pay off, as the company posted sales and earnings growth for its second quarter. DSW Inc. reported that net sales for the second quarter increased 4.7% to $476.3 million from $415.1 million in the second quarter of 2010. Comparable sales for the second quarter increased 12.3%.
Reported net income was $139.9 million, or $3.96 per diluted share. This compares with reported net income of $26.9 million, or $1.00 per diluted share.
"We continued our strong performance in the second quarter, delivering double-digit increases in sales and comparable sales, expansion in gross margin and solid earnings growth driven by the success of our format and our strategies," stated Mike MacDonald, president and CEO of DSW Inc. "We believe our sustained momentum is a clear indication of DSW's authority in the footwear category. The second quarter marked our eighth consecutive quarter of strong comparable sales approaching or equaling a double-digit growth rate."
"During the quarter we increased our men's and accessories penetration while continuing to grow women's fashion footwear," MacDonald continued. "We also launched our mobile website and kids' shoes online to further our market share gains in the high-growth e-commerce business. Despite economic uncertainty and equity market volatility, we expect fiscal 2011 to represent another strong year of growth and increased value for all DSW stakeholders."
For the first half of the year, DSW reported that net sales increased 13.3% to $979.9 million from $866.7 million for the first six months of 2010. Comparable sales for the period were up 11.5%. Net income for the first six months was $101.7 million or $3.54 per diluted share, compared with net income of $21 million or 98 cents per diluted share. Net income benefited by $28.4 million from the company's recent merger with Retail Ventures.
DSW said it is raising its annual guidance. The company continues to estimate annual comparable sales to increase in the mid-single-digit range and now expects annual diluted earnings per share in the range of $2.70 to $2.85 for fiscal 2011, excluding any impact from the merger with RVI.
As of July 30, 2011, DSW operated 319 stores in 39 states