Shoe retailer DSW (NYSE:DSW) tumbles 12%

Shoe retailer DSW Inc. (DSW, $51.94, -$6.86, -11.67%) projected a weak fiscal second quarter, pointing to increased clearance-priced sales as well as costs tied to expansion plans. Shares tumbled on the downbeat report, while also dragging down shoe sector peers Steven Madden Ltd. (SHOO, $35.56, -$2.50, -6.57%) and Genesco Inc. (GCO, $61.61, -$1.08, -1.72%).

The company’s earnings forecast fiscal second-quarter came well below analysts’ estimates. The company projects to earn 60 cents and 64 cents per share for the period ending July 31, compared with analysts’ target of 75 cents a share. However, the company continued to project fiscal 2012 adjusted earnings of $3.25 to $3.40 per share.