• Q2 profit soared to $139.9m on RVI acquisition
  • Net sales increased 14.7% to $476.3m
  • Comparable sales rose 12.3% 

Branded footwear and accessories retailer DSW Inc has raised its full-year outlook after second quarter profit jumped following the merger with its largest shareholder, Retail Ventures Inc (RVI), in May.

Net income in the three months to 30 July was $139.9m or $3.96 per share, up from $26.9m or $1.00 per share in the same period last year. Excluding the net benefit of $106.2m related to the RVI merger, adjusted profit was $33.7m or $0.74 per 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," said president and CEO Mike MacDonald.

"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 equalling a double-digit growth rate."

Looking ahead, MacDonald said: "Despite economic uncertainty and equity market volatility, we expect fiscal 2011 to represent another strong year of growth."

The company, which operates 319 stores, has raised its annual guidance. It now expects earnings per share in the range of $2.70 to $2.85 (excluding any impact from the merger with RVI), with same-store sales rising in the mid-single-digit range.