Brown Shoe Company, Inc. reported its first quarter sales reached $626.4 million compared to first quarter 2011 net sales of $619.6 million.
On an adjusted basis, net earnings rose 42.9 percent to $10.0 million,
or 23 cents per diluted share, compared to $7.0 million, or 16 cents, in
the prior year.

On a recorded basis, net earnings were down 54.1 percent to $1.7 million, or 4 cents per share, compared to $3.7 million, or 8 cents, in 2011. Gross profit margin for the first quarter of 2012 was 38.2 percent versus 40.0 percent in 2011.

“With sales of $626.4 million and adjusted earnings of $0.23 per share — up 44 percent — we had a great start to 2012. Strong topline sales growth and effective expense management helped drive good quarterly results, despite some gross margin pressure,” said Diane Sullivan, president and chief executive officer of Brown Shoe Company. “While good weather, an earlier Easter and an easier quarterly comp were welcome, these factors only helped to magnify the success we are seeing with the first phase of our portfolio realignment.”

“Our strong quarterly performance was better than expected and is reflective of the hard work we completed last year and are continuing to execute on this year,” continued Sullivan. “I’m looking forward to reporting ongoing benefits from these efforts throughout this year, and we will continue to evaluate our brands and our businesses against the financial hurdles we outlined during our portfolio realignment.”
                    

US$M, except per share (unaudited)
13 Weeks
52 Weeks

 
1Q’12
 
1Q’11
 
Change
 
1Q’12
 
1Q’11
 
Change

Famous Footwear

 

 

347.1

 

 

 

342.7

 

 

1.3

%

 

 

1,460.7

 

 

 

1,467.1

 

 

(0.4

%)

Wholesale Operations

 

 

223.2

 

 

 

217.1

 

 

2.8

%

 

 

877.0

 

 

 

796.7

 

 

10.1

%

Specialty Retail

 

 
56.1

 

 

 
59.8

 

 

(6.1

%)

 

 
252.0

 

 

 
262.1

 

 
(3.9
%)

Consolidated net sales

 

$

626.4

 

 

$

619.6

 

 

1.1

%

 

$

2,589.7

 

 

$

2,525.9

 

 

2.5

%

Gross profit

 

 

239.1

 

 

 

248.0

 

 

(3.6

%)

 

 

987.7

 

 

 

1,004.0

 

 

(1.6

%)
Margin
 

 
38.2 %
 

 
40.0 %
 
-180 bps
 

 
38.1 %
 

 
39.7 %
 
-160 bps

SG&A expenses

 

 

218.9

 

 

 

234.2

 

 

(6.5

%)

 

 
922.1
 

 

 

932.7

 

 

(1.1

%)
% of net sales
 

 
35.0 %
 

 
37.8 %
 
-280 bps
 

 
35.6 %
 

 
36.9 %
 
-130 bps

Net restructuring, other special charges

 

 

11.5

 

 

 

1.7

 

 

n/m

 

 

 

33.4

 

 

 

7.9

 

 

320.4

%

Operating earnings

 

 

8.7

 

 

 

12.1

 

 

(28.0

%)

 

 

32.2

 

 

 

63.4

 

 

(49.3

%)
% of net sales
 

 
1.4 %
 

 
1.9 %
 
-50 bps
 

 
1.2 %
 

 
2.5 %
 
-130 bps

Net interest expense

 

 

6.1

 

 

 

6.6

 

 

(8.2