How Has DSW Stock Performed in 2018?



Stock on the rise

As of August 9, DSW (DSW) stock has risen an impressive 28.9% to $27.60 on a YTD (year-to-date) basis. The company’s strategic endeavors, including overhauling its merchandise assortment, revamping its stores, investing in technology, and improving its loyalty rewards program, have resulted in revenue growth in the trailing five quarters.

DSW is looking for newer growth avenues, including kids footwear. DSW believes that if it wants to retain customers for their lifetimes, stocking up on kids footwear is one way to do so. Recently, the company rolled out its kids footwear category to its entire store base just ahead of the back-to-school season. The back-to-school season, which typically runs from mid-July to mid-September, is the second-most important shopping season for retailers.

Article continues below advertisement

Moreover, to bolster its North American operations, the company also purchased the remaining stake in Canadian-based Town Shoes for $35 million on May 10. It also unveiled its DSW VIP loyalty program, which offers customers benefits such as gifting points and free shipping. According to DSW, loyalty members account for 90% of its overall sales.

A look at peers’ stock price movements

In comparison, on a YTD basis, Deckers Outdoor (DECK) has risen 51.1% to $121.28. The company has been streamlining its store footprint, focusing on its summer and spring collection for the UGG brand, and optimizing its supply chain to control costs, which have been driving its stock.

Foot Locker (FL) has risen 1.6% to $47.61 as of August 9. The company is upgrading its digital platform and cutting costs to boost its top line and profitability. However, these days, big sports goods manufacturers such as Nike are focused on direct selling to customers, which is a cause for concern.

On the other hand, Skechers (SKX) has registered a fall of 22.2% to $29.44 on a YTD basis. The company’s disappointing second-quarter results and its lowering of its third-quarter guidance did not go down well with customers.


More From Market Realist