Brown Shoe Company, Inc., the parent of Famous Footwear, reported sales inched up 2.6 percent in the third quarter to $732.2 million from $713.8 million a year earlier. Excluding exited brands, net sales were up 4.2 percent year-over-year.
Results for both the third quarter of 2012 and 2011 included sales of $15.6 million and $25.8 million, respectively, from brands and businesses the company has exited.
Net earnings were $24.3 million, or 56 cents per diluted share, in the third quarter of 2012 versus $33.7 million, or 79 cents per diluted share, in 2011. Third quarter 2012 results included portfolio realignment charges of $2.6 million. Earnings for the third quarter of 2011 included a $21.6 million gain on the sale of AND 1, which was partially offset by portfolio realignment and integration related costs of $5.6 million. On an adjusted basis, net earnings of $25.9 million, or 60 cents per diluted share, improved 18.3 percent compared to $21.9 million, or 51 cents per diluted share, in the prior year. Gross profit margin for the third quarter of 2012 improved to 39.0 percent from 38.7 percent in 2011.
“With the third quarter, we delivered not only solid back-to-school results, but also overall strong quarterly same-store-sales growth of 6.8 percent at Famous Footwear,” said Diane Sullivan, president and chief executive officer of Brown Shoe Company. “We also saw improvement in sales for both our contemporary fashion and healthy living brand portfolios, as we continued to deliver trend-right products that are must-haves for consumers.”
US$M, except per share (unaudited) | 13 Weeks | 39 Weeks | 52 Weeks | ||||||||||||||||||||||||||
| 3Q’12 | 3Q’11 | Change | 3Q’12 | 3Q’11 | Change | 3Q’12 | 3Q’11 | Change | |||||||||||||||||||||
| Consolidated net sales | $732.2 | $713.8 | 2.6% | $1,957.9 | $1,953.9 | 0.2% | $2,586.8 | $2,558.5 | 1.1% | ||||||||||||||||||||
| Famous Footwear | 436.8 | 416.2 | 4.9% | 1,134.2 | 1,103.9 | 2.7% | 1,486.7 | 1,459.4 | 1.9% | ||||||||||||||||||||
| Wholesale Operations | 232.6 | 233.6 | (0.4%) | 650.7 | 665.8 | (2.3%) | 855.8 | 839.7 | 1.9% | ||||||||||||||||||||
| Specialty Retail | 62.8 | 64.0 | (1.8%) | 172.9 | 184.3 | (6.2%) | 244.3 | 259.4 | (5.8%) | ||||||||||||||||||||
| Gross profit | 285.8 | 276.5 | 3.4% | 758.7 | 758.1 | 0.1% | 997.2 | 993.4 | 0.4% | ||||||||||||||||||||
| Margin | 39.0% | 38.7% | 30 bps | 38.7% | 38.8% | -10 bps | 38.6% | 38.8% | -20 bps | ||||||||||||||||||||
| SG&A | 242.4 | 239.4 | 1.2% | 680.5 | 707.6 | (3.8%) | 910.4 | 934.4 | (2.6%) | ||||||||||||||||||||
| % of net sales | 33.1% | 33.5% | -40 bps | 34.7% | 36.2% | -150 bps | 35.2% | 36.5% | -130 bps | ||||||||||||||||||||
| Net restructuring, other special charges | 2.3 | 4.7 | 21.3 | 7.1 | 37.8 | 9.6 | |||||||||||||||||||||||
| Impairment of intangible assets | — | — | — | 5.8 | — | — | 5.8 | — | — | ||||||||||||||||||||
| Operating earnings | 41.1 | 32.4 | 27.1% | 51.1 | 43.4 | 17.6% | 43.2 | 49.4 | (12.5%) | ||||||||||||||||||||
| % of net sales | 5.6% | 4.5% | 110 bps | 2.6% | 2.2% | 40 bps | 1.7% | 1.9% | -20 bps | ||||||||||||||||||||
| Net interest expense | 5.4 | 6.6 | (17.5%) | 17.2 | 20.6 | (16.8%) | 23.0 | 26.0 | (11.3%) | ||||||||||||||||||||
| Earnings before income tax | 35.7 | 25.8 | 38.5% | 33.9 | 22.8 | 48.8% | 20.2 | 23.4 | (13.8%) | ||||||||||||||||||||
| Tax rate | 31.9% | 31.7% | 31.6% | 32.0% | 18.5% | 19.9% | |||||||||||||||||||||||
Net earnings from discontinued operations | — | 16.1 | — | ||||||||||||||||||||||||||
