Brown Shoe reports Q1 net sales of $626.4

Brown Shoe reported its first quarter 2012 financial results.

Net sales are $626.4 million (Rs 3408 crores). Net earnings are $1.7 million (Rs 9 crore), or $0.04 (Rs 2) per diluted share. Gross profit margin for the first quarter of 2012 is 38.2 per cent.

The good weather, an early Easter helped Brown Shoe to a great start in 2012. For the first quarter 2012 financial results show net sales of $626.4 million (Rs 3408 crores) compared to first quarter 2011 net sales of $619.6 million (Rs 3371 crores). First quarter net earnings of $1.7 million (Rs 9 crore), or $0.04 (Rs 2) per diluted share, compared to $3.7 million (Rs 20 crores), or $0.08 (Rs 4) per diluted share, in 2011. On an adjusted earnings basis, net earnings of $10 million (Rs 54 crores), or $0.23 (Rs 12) per diluted share, compared to $7 million (Rs 38 crore), or $0.16 (Rs 8) per diluted share, in the prior year. Gross profit margin for the first quarter of 2012 was 38.2 per cent versus 40 per cent in 2011.

Footwear reported a year-over-year improvement in first quarter net sales of 1.3 per cent, while same store sales were up 2.5 per cent. During the quarter, the company closed or relocated 34 stores and added 11 new stores, and average revenue per square foot improved 4.5 per cent over the first quarter of 2011.

Wholesale operations net sales were up 2.8 per cent as sales of ongoing brands exceeded the decline in sales for exited brands. The company’s Contemporary Fashion brands were up 20.8 per cent, with strong growth from both Franco Sarto and Sam Edelman. In the Healthy Living portfolio, Dr. Scholl’s Shoes and Ryka both saw improved performance, as spring weather trends helped drive sandal and athletic shoe sales.

Consolidated gross profit declined (3.6 per cent) in the first quarter, while gross profit margin declined by 180 basis points. The change in gross margin, when compared to the first quarter of 2011, was primarily due to higher markdowns at both wholesale and retail. Net sales mix at retail and wholesale was 64 per cent and 36 per cent respectively, versus 65 per cent and 35 per cent in the first quarter of 2011. The decline in gross margin was more than offset by lower SG&A, which decreased by $15.3 million (Rs 83 crore) to 35 per cent of net sales.

Inventory at the end of the first quarter was $512.8 million (Rs 2790 crores), down 4.1 per cent compared to $534.7 million (Rs 2909 crores) in the first quarter of 2011, with both Famous Footwear and Wholesale reporting a decrease in inventory. At quarter-end, Brown Shoe Company had approximately $354.3 million (Rs 1928 crores) in availability under its revolving credit facility and $39.8 million (Rs 216 crores) in cash and cash equivalents.

Brown Shoe Company is a $2.6 billion (Rs 14148 crores) global footwear company. It operates more than 1,300 Footwear and Naturalizer retail stores across the United States, Canada and China. It also designs, sources and markets many 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.