Net income increased 14% to $28,599,000 from $25,032,000 as the retailer reported comp store sales that were up 0.6%, its first positive comp in two years, on 3% higher revenues at $680,409,000 vs. $658,944,000. Gross margin expanded 50 basis points to 28.9% helped by 120 b.p. of product margin from lower markdowns and sourcing costs offset by costs from the ongoing Ebuys integration. SG&A increased 30 b.p., helped by lower overhead but with increases in selling expenses and technology spending.

In spite of the headwinds hitting other athletic footwear retailers, DSW still sees itself as underpenetrated in the category and is ... Log in to view full article.