UPDATE: DSW Tops Q4 Expectations, Shares Jump

Shares of DSW Inc.

surged more than 5% in pre-market trading after the company reported stronger-than-expected results for the fourth quarter. For 2015, DSW projects earnings of $1.80 to $1.90 per share on sales growth of 7% to 8%. Analysts had estimated earnings of $1.90 per share on sales growth of 7% revenue. The company expects comparable-store sales to rise in the low to mid-single digit range. The Columbus, Ohio-based company posted a quarterly profit of $30.8 million, or $0.34 per share, versus a year-ago profit of $28.1 million, or $0.30 per share. Excluding certain items, the company's earnings climbed to $0.35 per share from $0.31 per share. Its sales gained 12% to $640 million from $572 million. However, analysts were expecting earnings of $0.28 per share on revenue of $614.5 million. DSW's same-store sales climbed 7.6% for the quarter. On a cost per square foot basis, the company's inventories rose 6.5% at the end of quarter. Mike MacDonald, President and Chief Executive Officer said, "We were gratified to report strong sales and profit growth in the fourth quarter. Our decisive actions earlier in the year in the areas of leadership, value, and marketing produced strong results. These actions produced the strongest comp performance in almost three years, with traffic gains in both store and digital channels." DSW shares climbed 5.83% to $39.00 in pre-market trading.