Collective Brands Inc. reaffirmed its comparable store sales for the fiscal year, while providing details of the impact from Stride Rite’s acquisition. The Topeka, Kansas-based footwear and related accessories retailer confirmed its same store sales for the full year to be below its long term target of low single digit range. The company expects operating profit growth to be in mid-teens over time.


Collective Brands also expects the August 2007 acquisition of Stride Rite to be accretive to earnings in 2008 on a non-GAAP basis, excluding the impact of purchase accounting. On a GAAP basis, however, the acquisition is not anticipated to be earnings accretive for the current fiscal year including the impact of purchase accounting.


The company also noted that it expects the acquisition to result in cost synergies of approximately $6 million for 2008. For 2009, cost synergies are estimated to be $15 million over base year 2007, and for 2010, it is expected to be around $25 million over base year 2007.


Capital expenditure for the full year is estimated around $130 million, while amortization and depreciation expenses are expected to total $145 million. Effective tax rate for 2008 is expected to be approximately $130 million. The company attributed the higher expenses to huge investments in supply chain and stores in recent years, as well as the 2007 acquisition of Stride Rite.


“Collective Brands has made tremendous progress toward its vision of becoming the preeminent, consumer-centric, global footwear, accessories and lifestyle brand company. In only one year’s time — a span that has encompassed one of the most difficult markets in recent memory — the strategic rationale for creating Collective Brands and its new business model has been validated. By reaching customers through multiple price points and through a variety of retail, wholesale, licensing and e-commerce selling channels, we have been able to both maintain a steady state today, while continuing to leverage this exceptional foundation to drive growth and build value for the future. Growth is one of our key strategic themes. We are successfully extending the reach of our businesses and brand platforms internationally, as well as through product innovation, into new categories, and through global licensing to further amplifying our brands in the global marketplace,” said Matthew E. Rubel, chief executive officer and president of Collective Brands, Inc., at an investor meeting held today in Kansas City, Missouri.