Brown Shoe Company, Inc., the parent of Famous Footwear, reported revenues slid 3.4 percent in the second quarter, to $599.3 million versus second quarter 2011 net sales of $620.6 million. The company narrowed its loss in the period to $2.5 million, or 6 cents
per share, from $4.6 million, or 11 cents, in 2011. The second quarter
2012 loss included portfolio realignment charges of $12.4 million and
$2.3 million of charges related to a previously announced organizational
change.
On an adjusted basis, net earnings of $6.8 million, or 16
cents per diluted share, improved compared to a loss of $2.7 million, or 6
cents per diluted share, in the prior year. Gross profit margin for
the second quarter of 2012 was 39.0 percent versus 37.6 percent in 2011.
Results for both the second quarter of 2012 and 2011 included sales of $8.5 million and $25.8 million, respectively, from brands and businesses the company has exited over the past nine months. Excluding exited sales, net sales were down 7 percent year-over-year.
“For the second quarter, we delivered record setting sales and operating earnings at Famous Footwear, which was coupled with strong performance from our Contemporary Fashion brands,” said Diane Sullivan, president and chief executive officer of Brown Shoe Company. “We also continued to see leverage from our strategic portfolio realignment efforts, and this quarter’s results are another positive proof point we are delivering against our commitment to drive shareholder value.”
|
US$M, except per share (unaudited)
|
13 Weeks | 26 Weeks | 52 Weeks | ||||||||||||||||||||||||||||||
| 2Q’12 | 2Q’11 | Change | 2Q’12 | 2Q’11 | Change | 2Q’12 | 2Q’11 | Change | |||||||||||||||||||||||||
Famous Footwear |
350.3 |
344.9 |
1.6 |
% |
697.4 |
687.7 |
1.4 |
% |
1,466.1 |
1,464.7 |
— |
||||||||||||||||||||||
Wholesale Operations |
195.0 |
215.2 |
(9.4 |
%) |
418.2 |
432.1 |
(3.2 |
%) |
856.9 |
833.2 |
2.8 |
% |
|||||||||||||||||||||
Specialty Retail |
54.0
|
60.5
|
(10.8 |
%) |
110.1
|
120.3
|
(8.5
|
%)
|
245.4
|
262.9
|
(6.6 |
%) |
|||||||||||||||||||||
Consolidated net sales |
$ |
599.3 |
$ |
620.6 |
(3.4 |
%) |
$ |
1,225.7 |
$ |
1,240.1 |
(1.2 |
%) |
$ |
2,568.4 |
$ |
2,560.8 |
0.3 |
% |
|||||||||||||||
Gross profit |
233.8 |
233.6 |
0.1 |
% |
472.9 |
481.6 |
(1.8 |
%) |
987.9 |
999.1 |
(1.1 |
%) |
|||||||||||||||||||||
| Margin | 39.0 | % | 37.6 | % | 140 bps | 38.6 | % | 38.8 | % | -20 bps | 38.5 | % | 39.0 | % | -50 bps | ||||||||||||||||||
SG&A |
219.3 |
233.9 |
(6.3 |
%) |
438.2 |
468.1 |
(6.4 |
%) |
907.5 |
942.1 |
(3.7 |
%) |
|||||||||||||||||||||
| % of net sales | 36.5 | % | 37.7 | % | -120 bps | 35.8 | % | 37.7 | % | -190 bps | |||||||||||||||||||||||
