Revenue during the quarter grew 4.67 percent to $696.62 million from $665.52 million in the previous year period. Gross margin for the quarter expanded 50 basis points over the previous year period to 30.40 percent. Total expenses were 90.97 percent of quarterly revenues, up from 90.48 percent for the same period last year. That has resulted in a contraction of 49 basis points in operating margin to 9.03 percent.

Operating income for the quarter was $62.90 million, compared with $63.33 million in the previous year period.

Roger Rawlins, Chief Executive Officer of DSW Inc. stated, "This quarter reflects the first step in our return to year over year earnings growth. After four consecutive declines, we reported a 16% increase in Adjusted Earnings Per Share this quarter. Tighter inventory management drove improvements in gross margin which, combined with effective expense management, resulted in an increase in net income. We've reduced clearance markdowns and we are positioned to generate more profitable sales in the holiday season."

For financial year 2016, the company forecasts diluted earnings per share to be in the range of $1.35 to $1.45. The company forecasts diluted earnings per share to be in the range of $1.35 to $1.45 on adjusted basis.