COLUMBUS, Ohio (AP) — Shoe company DSW's net income declined 7 percent in the third quarter, partly due to higher operating expenses and a bigger income tax provision. Still, its results beat Wall Street's expectations and the shares rose to a new all-time high.
The retailer, which also sells accessories, earned $50.1 million, or $1.10 per share, for the three months ended Oct. 27. That's down from $53.7 million, or 75 cents per share, in the prior-year period.
Removing some legacy charges and other items, earnings per share climbed to $1.02 from 88 cents.
Analysts surveyed by FactSet predicted earnings of 89 cents per share.
Revenue increased 12 percent to $592.7 million from $530.7 million. Wall Street expected $588 million.
DSW's stock gained $5.04, or 8.1 percent, to $67.33 in midday trading. Earlier in the session the stock touched $69.35, their highest point since trading began in June 2005.
Revenue at stores open at least a year, a key gauge of a retailer's health, rose 6.3 percent. This figure excludes results from stores recently opened or closed.
DSW Inc. maintained its forecast for full-year adjusted earnings of $3.30 to $3.40 per share.
Analysts foresee earnings per share of $3.31, on average.
The chain said Tuesday that it plans to open 25 to 30 new stores next year. DSW had 364 stores in 41 states, the District of Columbia and Puerto Rico as of Nov. 20.
The company also said its board declared a quarterly dividend of 18 cents per share, payable on Dec. 28 to shareholders of record on Dec. 17.