Brown Shoe Company, Inc. reported net earnings of $21,200,000 for the third fiscal quarter ended November 1, 2003, versus $21,022,000 for the year-ago quarter, a
0.8 percent increase. Earnings per diluted share were $1.13 on 18.7 million shares, versus $1.18 last year on 17.8 million shares, exceeding previously announced expectations of $1.00 – $1.10 per share.

Consolidated net sales for the quarter increased 1.5 percent to
$493,433,000 versus $486,318,000 for the year-ago quarter.

“We are pleased to report improved earnings and increased sales, driven by
higher operating earnings at our Famous Footwear and Wholesale business
segments,” said Brown Shoe Chairman and CEO Ron Fromm. “Both segments exceeded
plan, a true testament to the value of the increased investments we've made in
growing consumer preference. In fact, we believe that Famous Footwear's
strong back-to-school season indicates its brand-name, fashion-value
merchandise assortments and new marketing direction are 'on target,' and
succeeding in improving the shopping experience for our customers. Within our
Wholesale segment, Naturalizer and LifeStride performed exceptionally in what
remains a very tough consumer environment.”

Brown Shoe continues to employ strict inventory metrics to drive product
freshness and velocity. While inventory levels at quarter-end were
$377 million, a 1.3 percent reduction versus year-ago levels of $381 million,
gross margin rates increased to 41.5 percent from 40.8 percent. At the same
time, total debt has been lowered to $119 million at quarter-end this year,
versus $160 million at the same point last year, and interest costs were
reduced by $584,000, to $2.26 million, versus $2.84 million in the year-ago
period.

As previously reported, sales at Famous Footwear, the Company's 908-store
family footwear chain, increased 2.4 percent to $301,588,000 for the quarter
versus $294,535,000 for the year-ago period. Operating earnings for Famous
Footwear were up 3.7 percent to $23,427,000 versus $22,585,000 for the
year-ago quarter. Same-store sales were up 0.7 percent for the quarter. This
improvement was due to increased customer purchase ratios and higher margins
throughout the important back-to-school period.

Third quarter sales for the company's 383 Naturalizer stores in the U.S.
and Canada were $49,789,000 versus $49,898,000 for the year-ago period, on an
average store base of 23 fewer stores. During the quarter, the division had an
operating loss of $166,000, compared to operating earnings of $1,535,000 for
the year-ago quarter, primarily due to lower than planned same-store sales.
Same-store sales were up 1.9 percent for stores in the U.S., and down
6.2 percent in Canada.

Earlier this year, Brown Shoe announced it had consolidated management of
its Canadian Naturalizer Retail and Canadian Wholesale operations. Its
Naturalizer brand, which traditionally had been very strong in Canada, was not
keeping pace with younger brands. “We continue to progress in our efforts to
reposition the brand and introduce U.S.-designed product into the Canadian
Naturalizer stores,” Fromm continued. “This work is underway and we are
looking for improved results next year.”

Wholesale sales for the quarter were $140,062,000, down 0.5 percent versus
$140,796,000 last year. Sales gains at Naturalizer, LifeStride, Dr. Scholl's
and the Carlos by Carlos Santana brands, were offset by declines in private
label business at the mass merchandise channel.

Operating earnings for the Wholesale businesses were $15,421,000 compared
to $11,712,000 for the prior-year quarter, a 31.7 percent gain, as a result of
slightly improved margins and good expense controls.

“Our flagship Naturalizer brand had a 2.9 percent increase in wholesale
sales for the quarter, achieving good retail sell-through rates with our
tailored, detailed dress and tall-shaft boot styles. LifeStride was up
18.3 percent, with strong sell-throughs in dress, tailored and boots.
Year-to-date, both brands gained market share in U.S. department stores versus
last year according to NPD Group data. Further, while unfilled orders for the
entire Wholesale division are running down 1 percent versus last year, orders
for Naturalizer and LifeStride are up by 7 percent and 16 percent
respectively,” Fromm said.

For the first nine months of 2003, consolidated net earnings were up
16.6 percent, to $41,759,000 or $2.25 per diluted share, compared to
$35,824,000 or $2.01 per diluted share, the year before. Sales increased
0.6 percent during the nine-month period to $1,398,261,000 compared to
$1,389,311,000 last year.

For the nine month period, sales at Famous Footwear decreased 0.2 percent
to $831,634,000 from $832,896,000 for the year-ago period; decreased
4.7 percent at Naturalizer Retail (U.S. and Canada) to $142,296,000 versus
$149,375,000, on a smaller store base; and increased 3.7 percent at Wholesale
to $418,950,000 versus $403,824,000 for the first nine months of last year.
Operating earnings for the nine months increased 16.6 percent to $46,914,000
at Famous Footwear versus $40,237,000 last year; increased 11.0 percent for
Wholesale to $40,980,000 versus $36,932,000; and declined to a loss of
$2,534,000 for Naturalizer Retail, which posted a gain of $246,000 for the
first nine months of 2002.

The Company also noted that it expects the trial for the Antolovich class
action lawsuit regarding its Redfield site in Denver to conclude in late
November or early December.

With respect to forward-looking guidance for fiscal 2003, Brown Shoe
reiterates its earnings per share estimate of $2.75, which compares favorably
to fiscal 2002 earnings per share of $2.52. Therefore, the Company estimates
diluted earnings per share for the fourth quarter will be $0.50 versus
$0.51 for the year-ago quarter.

This guidance is predicated upon a slightly positive same-store sales
retail performance for the fourth quarter of 2003, as soft sales and the
promotional marketplace of October are anticipated to continue. The Company
also estimates its Wholesale operating earnings will be flat in the fourth
quarter, as difficult comparisons exist versus the fourth quarter of 2002,
when concerns about labor issues at West Coast Ports caused some retailers to
shift certain spring 2003 receipts into fourth quarter 2002.

                           BROWN SHOE COMPANY, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                                 (Unaudited)

    (Thousands, except per share)

                              Thirteen Weeks Ended    Thirty-Nine Weeks Ended

                             November 1, November 2,  November 1, November 2,
                                2003        2002         2003        2002

    Net Sales                $493,433    $486,318   $1,398,261  $1,389,311
    Cost of Goods Sold        288,721     287,681      820,557     832,231

    Gross Profit              204,712     198,637      577,704     557,080

    Selling & Administrative
     Expenses                 172,278     167,123      511,317     497,786
    Operating Earnings         32,434      31,514       66,387      59,294

    Interest Expense            2,256       2,840        7,679       9,506
    Interest Income              (118)       (128)        (318)       (275)

    Earnings Before
     Income Taxes              30,296      28,802       59,026      50,063

    Income Tax Provision        9,096       7,780       17,267      14,239

     NET EARNINGS             $21,200     $21,022      $41,759     $35,824

    Basic Net Earnings per
     Common Share               $1.19       $1.21        $2.37       $2.06

    Diluted Net Earnings per
     Common Share               $1.13       $1.18        $2.25       $2.01