DSW to Pay $2.00 Special Dividend

DSW Inc. (NYSE: DSW), a leading branded footwear and accessories retailer, announced that its Board of Directors declared a special dividend of $2.00 per share, totaling approximately $91 million. The special dividend will be paid on October 26, 2012 to shareholders of record at the close of business on October 16, 2012. This special dividend is in addition to the Company’s regular quarterly dividend of $0.18per share that was declared on August 22, 2012. The regular dividend will be paid onSeptember 28, 2012 to shareholders of record at the close of business on September 18, 2012.

The combined special dividend and regular quarterly dividends make for a 3.40% dividend yield.

The company earlier reported Q2 earnings of $0.66 per share, ex one-time items, versus the Capital IQ consensus of $0.62. Revenues were $512.2 million, versus the analyst estimate of $510.4 million.  Comparable sales for the second quarter 2012 increased by 4.2%.  The company reaffirms its FY12 EPS guidance of $3.25 – $3.40, ex non-recurring items, in line with the consensus of $3.33. It also continues to expect a mid-single digit comparable sales increase for FY12.

DSW, which sells shoes of brands including Prada, Nine West, Fendi and Tommy Hilfiger at discounted rates, maintained its adjusted profit forecast for fiscal 2012 and said it plans to open 27 new stores in the second half of the year.