UPDATE 1-DSW Q2 profit beats on higher gross margin

* Q2 EPS $0.52 vs est $0.47

* Same-store sales rise 12 pct

* Q2 helped by higher gross margins

Aug 31 (BestGrowthStock) – DSW Inc (DSW.N: ) posted a second-quarter
profit that beat market expectations, helped by higher gross
margins, and the shoe retailer backed its full-year profit

The company, which sells branded footwear for men and women
at discounted prices, reported net income of $23.5 million, or
52 cents a share for the quarter ended July 31, compared with
$7.6 million, or 17 cents a share, a year ago.

Analysts, on average, were expecting a profit of 47 cents a
share, according to Thomson Reuters I/B/E/S.

Earlier in August, the company said net sales for the
quarter rose 12 percent to $415.1 million. [ID:nSGE6730IJ]

Gross margins in the quarter rose to 30.3 percent, as input
costs fell as a percentage of sales.

The Columbus, Ohio-based retailer reiterated its fiscal
2010 outlook of adjusted earnings of $1.80-$1.95 a share.

DSW shares, which have gained 27 percent since they touched
a 52-week high in late April, closed at $23.79 Monday on the
New York Stock Exchange.
(Reporting by NR Sethuraman in Bangalore; Editing by
Unnikrishnan Nair)

UPDATE 1-DSW Q2 profit beats on higher gross margin