Shares of DSW rose more than 20 percent in the premarket Tuesday after the company posted quarterly results that easily topped analyst expectations.
The footwear retailer posted adjusted second-quarter earnings of 63 cents a share on revenue of $795.3 million. Analysts polled by Reuters expected a profit of 46 cents a share on sales of $689.4 million.
DSW’s results were boosted by much better-than-expected same-store sales, which is a key number for retailers. Same-store sales rose 9.7 percent last quarter, surpassing a Reuters forecast of 2.5 percent growth.
CEO Roger Rawlins said the company’s earnings and revenue for the quarter were records. “Our merchandise strategy and marketing investment fueled strong customer engagement, traffic and transaction activity,” he said. “The strong results we’ve had this spring demonstrate we’re successfully activating customers and increasing lifetime value.”
DSW also said it would close its 38 Town Shoes stores, which are based in Canada, to focus on its three largest retail banners: Shoe Company, Shoe Warehouse and DSW Designer Shoe Warehouse. The company said the consolidation would be “slightly accretive” this year.
The company’s stock has been on fire this year. Entering Tuesday’s session, the stock was up 27 percent for 2018.