• Second-quarter net income fell to US$29.3m from $139.9m
  • Sales increased 7.5% to $512.2m
  • Comparable-sales were up 4.2%


US footwear and accessories retailer DSW has seen its second-quarter net income plummet, but emphasised that the results exceeded expectations.

Over the quarter ended 28 July, net income fell to US$29.3m from $139.9m in the same period of the previous year. Excluding the impact of items related to its merger with Retail Ventures (RVI) in May 2011, net income was $30.1m.

Quarterly sales increased 7.5% to $512.2m, as comparable sales increased 4.2%.

Second quarter EPS reached $0.66 per share, beating earlier guidance of $0.60-0.64 per share. 

"Our second quarter results surpassed our updated guidance and our performance for the first six months of the year is on track with our annual earnings target," said president and CEO Mike MacDonald.

"During the spring season, we reported solid comp sales increases across all categories of our business, reflecting our ongoing ability to identify and interpret trends that resonate with our customers.

"We ended the season with inventory in good shape in terms of level, content and currency. We remain excited about our business as we begin the second half of the year, during which we will open another 27 new stores."