Brown Shoe Q2 Loss Narrows

In Industry News, Reports, What's New by Accessories StaffLeave a Comment

St.Louis—Brown Shoe Co., which owns Famous Footwear and Naturalizer shoe chains, said today that its second quarter loss narrowed as it cut costs that offset a revenue drop.

Excluding costs related to exiting some of its businesses, the company posted a profit that topped Wall Street expectations and shares rose in early trading.

For the quarter ended July 28, Brown Shoe posted a loss of $2.5 million, or 6 cents a share, compared with a loss of $4.6 million, or 11 cents a share, in the same quarter last year.

Excluding costs for exiting some of its brands and closing facilities, the company said it posted an adjusted profit of 16 cents a share. Analysts, on average, expected a profit of 3 cents a share.

Revenue fell 3% to $599.3 million from $620.6 million, while analysts expected $607.2 million. Selling and administrative expenses fell 6% to $219.3 million.

Sales at the company’s Famous Footwear chain rose nearly 2% to $350.3 million on higher demand for sandals and running shoes. Comparable store sales rose 4%.

Sales in the company’s wholesale division fell 9% to $195 million. Brown Shoe expects sales in that unit to drop this year as it shuts down parts of the business.

Looking ahead, Brown Shoe lifted its 2012 profit forecast to 85 cents to 95 cents a share from 83 cents to 95 cents a share. Analysts expect 88 cents a share.

Brown Shoe backed its previous revenue prediction of $2.57 billion to $2.59 billion. Analysts expect $2.57 billion.


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