DSW Inc. claimed net income of $23.5 million on net sales of $415.1 million for the second quarter ended July 31, 2010, compared with net income of $7.6 million on net sales of $369.5 million in the prior year quarter. Same-store sales increased 12% for the comparable period versus a decrease of 2.9% last year. 


Diluted earnings per share were 52 cents for the second quarter compared with diluted earnings per share of 17 cents last year.


For the 26 weeks ended July 31, the company reported net income of $53.6 million on net sales of $864.7 million, compared with net income of $14.7 million on net sales of $755.3 million for the comparable period in 2009.  Same-store sales increased 14.1% for the comparable twenty-six week period versus a decrease of 3.8% last year.  


Diluted earnings per share were $1.20 for the 26-week period compared with 33 cents for the same period last year. 


Fiscal 2010 Annual Outlook


The company reiterated its estimate of an annual comparable store sales increase of approximately 7% to 9% and annual diluted earnings per share of approximately $1.80 to $1.95 for fiscal 2010.  Fiscal 2009 annual diluted earnings per share were $1.23.


The company does recognize, however, that second half performance implied in the guidance derives from a challenging 2009 in which comparisons for both sales growth and merchandise margins may be skewed based on the economic downturn.

















































































































































































































DSW INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)









Three months ended



Six months ended




July 31, 2010



August 1, 2009



July 31, 2010



August 1, 2009



Net sales


$     415,120



$      369,490



$       864,657



$      755,336



Cost of sales


(289,402)



(271,702)



(591,574)



(552,567)



Gross profit


125,718



97,788



273,083



202,769



Operating expenses


(87,623)



(86,427)



(185,843)



(179,305)



Operating profit


38,095



11,361



87,240



23,464



Interest income, net


137



578



922



832



Non-operating income, net




528





133



Earnings before income taxes


38,232



12,467



88,162



24,429



Income tax provision


(14,778)



(4,900)



(34,524)



(9,717)



Net income


$       23,454



$          7,567



$         53,638



$        14,712












Basic and diluted earnings per share:










Basic


$           0.53



$            0.17



$            1.22



$            0.33



Diluted


$           0.52



$            0.17



$            1.20



$            0.33












Shares used in per share calculations:










Basic


43,988



44,074



43,948



44,046



Diluted


44,826



44,420



44,800



44,355