World Footwear


US based Brown Shoe announces net income recovery

Jun 19, 2014 United States
US based Brown Shoe announces net income recovery
The company reported consolidation of net sales for the first quarter (0.4% change over the previous year). Net income improved from a 10.8 million USD loss in 2013 to a 15.4 million USD earning in 2014
“First quarter results exceeded our expectations, thanks to strong Contemporary Fashion platform sales and a return to more seasonal weather for the last two weeks of April,” commented CEO, President and Chairman of Brown Shoe Company, Diane Sullivan, adding: “We feel optimistic about second quarter and the potential to benefit from pent-up spring shoe demand.”

Brown Shoe Company
reported 2014 first quarter net sales of 591.2 million USD up slightly from the 588.7 million USD registered last year. First quarter 2014 net earnings of 15.4 million USD (0.35 USD per diluted share) reflect a major performance improvement and a recovery from the net loss of 10.8 million USD in the first quarter of 2013. Gross profit margin for the first quarter of 2014 improved to 41.0% from 40.8% in the prior year.

Famous Footwear first quarter sales were up 0.7% year-over-year reaching 354.6 million USD, a performance mainly driven by athletics. During the quarter, 21 stores were closed or relocated and 11 new stores were added.

Wholesale sales were up 5.6% in the first quarter reaching 191.8 million USD. For the Healthy Living platform, wholesale sales of 104.7 million USD were up 0.7%. Contemporary Fashion wholesale sales of 86.9 million USD were up 12.3% in the first quarter, with strong improvement coming from the Via Spiga brand.

Consolidated gross profit of 242.3 million USD was up 1.0% in the first quarter, while gross margin increased by 20 basis points to 41.0%. For the quarter, operating margins improved 130 basis points year-over-year to 4.9%.

“We’re pleased with our first quarter results - especially with the weather-related headwinds we faced in February and March - and we are optimistic about the remainder of the year,” commented Russ Hammer, Chief Financial Officer. “To account for a better-than-anticipated first quarter, we are raising our annual guidance range (for earnings per diluted share) to 1.47 USD to 1.57 USD, as we’re also slightly more positive regarding our potential at Wholesale for the year”.

Please note that first quarter for Brown Shoes is the 13 weeks period running until the 3rd of  May 2014.

For more information about Brown Shoe please visit the website.

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