Stock Research and Analysis

by Morningstar Equity Analysts
With an expansive assortment of high-end footwear brands at competitive prices, DSW has carved out an intriguing niche between the department store and discount retail channels. Stores provide an enticing shopping experience for a fashionable, yet value-conscious   Read more 

Bulls Say

With 2,000 different footwear styles per store and more than 400 brands, few retailers can match DSW's product breadth, particularly in the higher-margin women's premium and luxury categories.
Roughly 88% of retail sales in 2011 came from "DSW Rewards" loyalty program members. The program has become an effective tool to fine-tune marketing communications.
DSW issued has issued two special dividends since 2011 and initiated a regular quarterly dividend in mid-2011, thus returning capital to its shareholders. Read more 

Bears Say

Heavy promotional activity from department stores, e-commerce substitutes such as Zappos, and expanded branded offerings from discounters could negatively affect DSW's value proposition.
With favorable economics and few barriers to entry, the branded off-price category could attract competition. Well-capitalized rivals could enter the space through consolidation or developing their own vendor network. Read more 

Management

We view DSW's stewardship as standard. The firm is led by CEO Michael MacDonald, who brings more than 30 years of retail experience to the position (including a previous position as CEO of regional department store chain Shopko as well as leadership   Read more 

Profile

DSW is a leading retailer of adult footwear and accessories. The firm differentiates itself from other players in the adult footwear market through an assortment of popular   Read more 

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