Earnings look below average for competitors but their remains positive sentiment among analysts for DSW. Let's see how much market share DSW was able to steal. I am not sure how to factor the insider sells since the last earnings. It should be interesting come next Tuesday.
I'd also guess the top line is going to beat, but wonder about the bottom line. How can the top line NOT beat when you have 10-15 new stores already this year, with BIG at least one new "mega-store" in Manhattan.
The increase in store openings for 2012 (and this quarter) will probably eat in to profits, as I'm sure costs increase when obtaining new space, and having to purchase inventory to stock stores.
But... wouldn't that lead the way to MORE profits in the coming quarters? And the more stores, the more "economy of scale" they get, the stronger the purchasing power, the higher the margins.
As DSW doesn't ever actually buy space for its stores, you'd figure the down economy would be great for the leases they are signing at the closed out Borders and other places in malls.
The increase in margin over the past 2-3 years (and lack of debt--and that my GF loves the place) are why I believe!