UPDATE: DSW Reports Q1 Net Income of $38.4 million

DSW Inc DSW reported a 12% rise in its Q1 net sales on Tuesday. DSW reported its quarterly net income at $38.4 million, or $0.85 per share, versus $30.2 million, or $0.67 per share, in the year-ago period. The latest quarter earnings included charges of $0.02 related to the pending merger with RVI. Its comparable sales surged 10.8%. DSW's net sales surged 12.0% to $503.6 million from $449.5 million. However, analysts were expecting earnings of $0.75 per share on revenue of $486.54 million. DSW now expects fiscal 2011 earnings per share in the range of $2.65 to $2.80, excluding any impact from the pending merger with RVI. DSW shares fell 0.28% to close at $43.19 yesterday. Read more from Benzinga's Company news.