UPDATE: DSW Shares Jump On Upbeat Results

Shares of DSW

jumped more than 12% in pre-market trading after the company reported upbeat fiscal second-quarter results. The Columbus, Ohio-based company posted a quarterly profit of $34.3 million, or $0.38 per share, versus a year-ago profit of $33.7 million, or $0.37 per share. Its adjusted per-share profit came in at $0.37, beating analysts' estimates of $0.32 per share. Its sales climbed 4.5% to $587.1 million, while same-store sales climbed 0.8% in the quarter. Analysts were expecting sales of $563 million and a 3.9% drop in same-store sales. DSW repurchased around 2 million shares for $55 million under its $100 million authorized share buyback plan in the quarter. Mike MacDonald, President and Chief Executive Officer said, "In the quarter we accomplished our goal of achieving improvement in the underlying sales trends and eliminating any inventory imbalances. All major categories recorded improved sales performance in the second quarter compared to the first quarter. In addition, we were encouraged by the sequential improvement in sales trends as the quarter progressed. The actions we took to balance inventories created margin pressure but inventories at the end of the quarter were current and below the prior year on a cost per square foot basis.” DSW projects FY14 adjusted earnings of $1.50 to $1.65 per share. DSW shares climbed 12.68% to $32.00 in pre-market trading.