UPDATE: DSW Shares Rise After Strong Q3 Earnings

Shares of DSW (NYSE: DSW) gained more than 2.9% after the company reported better-than-expected third-quarter earnings and raised its FY14 forecast.The Columbus, Ohio-based company posted quarterly earnings of $49.6 million, or $0.55 per share, compared to $55.0 million, or $0.60 per share, in the year-ago period. Excluding items, the company earned $0.56 per share.Its revenue climbed 5.8% to $669.9 million in the period. However, analysts were expecting earnings of $0.52 per share on revenue of $660.8 million.Comparable sales climbed 2.6% in the quarter, versus a 0.7% decline in the year-ago period.At the end of the quarter, cash, short term and long term investments totaled $427 million, versus $517 million in the third quarter last year.DSW added $50 million to its share buyback program.Mike MacDonald, President and Chief Executive Officer stated, ''We were pleased with the progress we made in the quarter, particularly the improvements in top line performance. Sales in all major categories accelerated compared to first half performance. We are especially encouraged by the performance of women's footwear, which posted its first positive comparable sales increase since the second quarter of 2013. The merchandise initiatives we began to implement at the start of the year are gaining traction."For the full year, DSW now projects earnings of $1.55 to $1.65 per share, with annual comparable sales projected to be slightly positive. The company had earlier expected earnings of $1.50 to $1.65 per share.DSW shares rose 2.94% to $34.64 at 10:20 a.m. ET.