Brown Shoe Company management made the declaration last week in a call with analysts that “Famous Footwear is no longer a low-priced footwear chain”, stating that the chain offers top brands at exceptional value.
The chain is seeing positives in a number of key metrics, but traffic has yet to come around to expected levels. Management points to new product from adidas, Nike, and New Balance, Converse and K-Swiss that is expected to drive increased traffic into the stores. The company also pointed to a womens business that was said to be “strong all year”, targeted at a “fashion value customer” and her teenage daughter.
Joe Wood, president of Famous Footwear, said that sales strengthened during the back-to-school period in August and September, with comps up 3.2% and 2.0% respectively, but saw comps decline 4.9% in October. The retailer pointed to the warm weather in October that “negatively affected sales of seasonal footwear”. Conversion rates are still running ahead of last year, but the average ticket price declined as boots and cold-weather casuals slowed in the warm weather.
Athletic footwear “outperformed the chain” during BTS, with an emphasis placed on exclusive product through both advertising and in-store presentation. The junior women's business continued its double-digit gains from the first half of the year and the men's and children's business were slightly behind plan and slightly behind last year's numbers.
Wood said that while he expects the market to remain promotional through the balance of the year, Famous Footwear was not increasing the number of promotions planned for Thanksgiving and the holiday period. He said they are focusing on product and presentation instead. “I expect to be promotional; I don't expect it to be a blood bath”, he said.
He also said exclusive product should grow to 15% to 18% of the business by the first quarter next year from its current 5% position.
