Jan 12 (Reuters) - Shoe retailer DSW Inc (DSW.N) said its fourth-quarter sales were better than expected and margins improved, and raised its full-year profit view for the third time to above market estimates.

Photo: www.dsw.com

The retailer, which sells branded footwear at discounted prices, raised its fiscal year profit view to between $1.15 and $1.25 a share. It had earlier forecast earnings of 90 cents to $1.00 per share for the full year.

Analysts on average were looking for a profit of 99 cents a share, before items, for the year, according to Thomson Reuters I/B/E/S.

DSW forecast annual same-store sales rise of about 3 percent, up from its previous forecast of 1 percent increase.

Shares of the Columbus, Ohio-based retailer closed at $25.50 Monday 11 January on the New York Stock Exchange. (Reporting by Vidya Lakshmi in Bangalore; Editing by Gopakumar Warrier)