In its latest quarter, ending on November 3, the Ohio company reported profits of $39.3 million or $0.48 per share, up from $4 million or $0.05 per share in the year-ago quarter.
Stripping out items, its earnings amounted to $0.70 per share, which zipped past Wall Street’s consensus estimate of $0.52 per share.
Its revenue jumped to $831.67 million, up from $709.65 million in the year-ago quarter and coming in ahead of analysts’ average projection of $795 million.
In response, investors sent DSW shares up by 14.2% to $26.42 before the opening bell on Tuesday.
Same-store sales increased 7.3%, which also exceeded the 5% figure analysts had been expecting.
Camuto Group acquisition in focus
In a statement, DSW CEO Roger Rawlins was particularly bullish on the shoe retailer’s recent acquisition of the Camuto Group, which it orchestrated with Authentic Brands Group last October for about $375 million.
“Our acquisition of Camuto Group brings powerful design and sourcing capabilities in house and new streams of revenue from one of the leading lifestyle brands in fashion footwear,” Rawlins said.
“Integration efforts are on track, with supply chain and working capital improvements paving the way for a return to profitability,” he added.
The roll-out of DSW’s kids shoe business across the US also boosted the retailer’s profits in the quarter.
Looking ahead, DSW lifted its full-year adjusted earnings per share guidance to $1.70 to $1.85, up from its previous expectation of $1.60 to $1.75 per share.
With more than 1,000 stores, DSW is one of the biggest shoe retailers in the US.