Brown Shoe Company Q2 net sales fall by 3.4 percent

Brown Shoe Company reported its second quarter

2012 financial results with net sales of 599.3 million dollars (Rs 3,340 crores) versus second quarter 2011 net sales of 620.6 million dollars (Rs 3,459 crores), a decrease of 3.4 percent. Results for both the second quarter of 2012 and 2011 included sales of 8.5 million dollars (Rs 47 crores) and 25.8 million dollars (Rs 143 crores), respectively, from brands and businesses the company has exited over the past nine months. Excluding exited sales, net sales were down 0.7 percent year-over-year.

The second quarter net loss of 2.5 million dollars (Rs 13 crore), or 0.06 dollars (Rs 3.3) per diluted share, improved when compared to 4.6 million dollars (Rs 25 crores), or 0.11 dollars (Rs 6.1) per diluted share, in 2011. Gross profit margin for the second quarter of 2012 was 39 percent versus 37.6 percent in 2011.

“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 we are delivering against our commitment to drive shareholder value.”

Famous Footwear reported record second quarter 2012 sales of $350.3 million (Rs 1, 952 crores), a 1.6 percent year-over-year improvement, with both running and sandals contributing, up 12.8 percent and 3.7 percent, respectively. On a same-store-sales basis, the second quarter was up 3.9 percent over the prior year. During the quarter, the company closed or relocated 26 stores and added 14 new stores, and average revenue per square foot improved 6.7 percent year-over-year.

The company’s Contemporary Fashion platform was up 11.7 percent in the second quarter, with continued strong growth from the Sam Edelman brand. In the Healthy Living portfolio, the company’s LifeStride brand delivered double-digit sales growth in the second quarter. Excluding brands the company exited over the past nine months, Wholesale Operations sales were down 3.1 percent year-over-year in the second quarter.

Brown Shoe Company is a 2.6 billion dollars (Rs 14,492 crores) global footwear company operating more than 1,300 Famous Footwear and Naturalizer retail stores across the United States, Canada and China. It also designs, sources and markets many well-known wholesale shoe brands -- such as Naturalizer, Dr. Scholl's Shoes, LifeStride, Sam Edelman, Franco Sarto, Via Spiga, Vera Wang, Avia and Ryka -- across multiple distribution channels. In addition to its retail and wholesale operations, it maintains a strong online presence with its e-commerce sites.