Sterne Agee CRT Reiterates Buy Following DSW (DSW) 1Q15

Sterne Agee CRT reiterates a Buy rating and $45 price target on DSW Inc. (NYSE: DSW) following 1Q15 results. DSW reported an adjusted EPS of $0.53, compared to the consensus estimate of $0.48. Total revenue increased by 9.4%. Sterne Agee CRT is raising FY15 EPS estimate from $1.91 to $1.93, above management's guidance.

Analyst Sam Poser commented, "Healthy SSS, improving margins and conservative guidance make for a strong set-up for the balance of the year. Slowly, but with much more opportunity ahead, DSW's merchants are beginning to realize that lower product initial markup does not necessarily result in lower margins. The evolving strategy of taking a lower IMU is likely to result in higher AURs and improved margins than management expects for the balance of the year and beyond. Improved systems will further drive margin improvement. Increased digital efforts and social media marketing initiatives are driving, and will continue to drive, a younger female demographic, who tend to spend more, to DSW."

For an analyst ratings summary and ratings history on DSW Inc. click here. For more ratings news on DSW Inc. click here.

Shares of DSW Inc. closed at $35.15 yesterday.

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