Brown Shoe Company, Inc. reported its first quarter sales rose 4.5 percent to $624.6 million from $597.7 million a year ago, reflecting the acquisition of American Sporting Goods. On an adjusted basis, net earnings fell 37.5 percent to $7.0 million, or 16 cents per
share, from $11.2 million, or 26 cents,  in the first quarter of 2010.

Net earnings were $3.7 million, or 8 cents per share, compared to net earnings of $10.0 million, or 23 cents per diluted share, in the first quarter of 2010.

Gross profit margin in the first quarter of 2011 was 40.0 percent versus 41.4 percent in the first quarter of 2010.

“As expected, we saw revenue improvement in the first quarter, although our overall results were mixed. Despite tough year-over-year comparisons, we were able to grow our gross profit margin at Famous Footwear and experienced revenue growth in our Wholesale Operations,” said Diane Sullivan, president and chief operating officer of Brown Shoe. “I continue to feel good about our overall strategy, and the entire company is looking forward to heading into the back-to-school selling season and to meeting our consumers needs and driving market share in our target areas of healthy living, contemporary fashion and family.”

US$ in millions, except per share data (unaudited)

 

 

13 Weeks Ended

 

 

 

52 Weeks Ended


 

 

4/30/11

 

 

5/1/10

 

 

Change

 

 

 

4/30/11

 

 

5/1/10

 

 

Change


Famous Footwear

 

 

342.7

 

 

362.2

 

 

-5.4%

 

 

 

1,467.1

 

 

1,408.2

 

 

4.2%


Wholesale Operations

 

 

222.1

 

 

174.7

 

 

27.1%

 

 

 

801.8

 

 

637.7

 

 

25.7%


Specialty Retail

 

 

59.8

 

 

60.8

 

 

-1.7%

 

 

 

262.1

 

 

255.0

 

 

2.8%


Consolidated net sales

 

 

$624.6

 

 

$597.7

 

 

4.5%

 

 

 

$2,531.0

 

 

$2,300.9

 

 

10.0%


Gross profit

 

 

249.8

 

 

247.6

 

 

0.9%

 

 

 

1,005.8

 

 

942.5

 

 

6.7%


Margin

 

 

40.0%

 

 

41.4%

 

 

-140 bps

 

 

 

39.7%

 

 

41.0%

 

 

-130 bps


SG&A expenses

 

 

235.5

 

 

224.6

 

 

4.9%

 

 

 

934.0

 

 

871.5

 

 

7.2%


% of net sales

 

 

37.7%

 

 

37.5%

 

 

20 bps

 

 

 

36.9%

 

 

37.9%

 

 

-100 bps


Net restructuring,
other special charges

 

 

1.7

 

 

1.7

 

 

1.6%

 

 

 

7.9

 

 

11.0

 

 

-28.0%


Operating earnings

 

 

12.6

 

 

21.3

 

 

-41.0%

 

 

 

63.9

 

 

60.0

 

 

6.5%


% of net sales

 

 

2.0%

 

 

3.6%

 

 

-160 bps

 

 

 

2.5%

 

 

2.6%

 

 

-10 bps


Net interest expense

 

 

6.6

 

 

4.5

 

 

47.2%

 

 

 

21.5

 

 

19.2

 

 

12.3%


Earnings before income taxes

 

 

6.0

 

 

16.8

 

About The Author

Thomas J. Ryan

Thomas J. Ryan Senior Business Editor | SGB Media tryan@sgbonline.com | 917.375.4699

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