DSW issues special dividend, updates board

DSW issues special dividend, appoints new board member, receives litigation payment

Associated Press

COLUMBUS, Ohio (AP) -- DSW Inc. said Wednesday that it will spend $91 million to issue a special dividend to its shareholders.

The shoe retailer will pay $2 per share on Oct. 26 to shareholders of record as of Oct. 16. DSW said the dividend is in addition to its regular quarterly dividend of 18 cents per share, which will be paid Sept. 28 to shareholders as of Sept. 18.

The company said the payment reflects the company's strong cash flow and focus on returning value to its shareholders.

DSW also said Wednesday that it has appointed James O'Donnell, a former CEO of American Eagle Outfitters Inc., to its board.

Separately, the company said that it received a $7.2 million payment this week for an award from litigation with its insurance carrier over a credit card data breach in 2005. The company will record an 8 cents-per-share benefit for the award in its third quarter.

DSW, based in Columbus, Ohio, operates 342 stores in 41 states.

Its shares rose $1.40, or 2 percent, to $65.50 in extended trading following the announcement of the special dividend. Earlier, it closed the regular trading session up 26 cents at $64.10.

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