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Stride Rite addition drives Collective Brands Q3 total sales
05 Dec '07
3 min read
Collective Brands Inc reported financial results for the third quarter ended November 3, 2007, the first financial reporting period since the acquisition of Stride Rite on August 17, 2007.
Third quarter 2007 net earnings were $25.5 million, or $0.39 per diluted share, down 11.8% versus third quarter 2006 net earnings of $28.9 million, or $0.43 per diluted share.
The results for the third quarter of 2007 included purchase accounting expense resulting from the flow through of inventory recorded at fair value and depreciation and amortization of certain other assets purchased in the Stride Rite acquisition totaling $28.6 million pre-tax or $0.12 per diluted share.
Excluding the impact of purchase accounting (see end note discussion of Non-GAAP Financial Measures), net income for the third quarter of 2007 would have been $33.3 million, or $0.51 per diluted share, an increase of 15.2% versus the third quarter 2006.
Third quarter 2007 net earnings were favorably impacted by a lower annual effective income tax rate. All 2006 financial information provided excludes Stride Rite.
Collective Brands' third quarter 2007 total sales were $830.7 million, up 18.1% compared to the third quarter of 2006, driven by the addition of Stride Rite. Total sales for Payless and Stride Rite were $685.9 million and $144.8 million, respectively, for the third quarter of 2007.
Comparable store sales (which include only Payless results) declined 3.5%. Comparable store sales were affected by lower traffic and unit sales, primarily lower sales of boots, as a result of unseasonably warm weather as well as consumer behavior linked to the economic environment.
Third quarter 2007 net earnings were $25.5 million, or $0.39 per diluted share, down 11.8% versus third quarter 2006 net earnings of $28.9 million, or $0.43 per diluted share.
The results for the third quarter of 2007 included purchase accounting expense resulting from the flow through of inventory recorded at fair value and depreciation and amortization of certain other assets purchased in the Stride Rite acquisition totaling $28.6 million pre-tax or $0.12 per diluted share.
Excluding the impact of purchase accounting (see end note discussion of Non-GAAP Financial Measures), net income for the third quarter of 2007 would have been $33.3 million, or $0.51 per diluted share, an increase of 15.2% versus the third quarter 2006.
Third quarter 2007 net earnings were favorably impacted by a lower annual effective income tax rate. All 2006 financial information provided excludes Stride Rite.
Collective Brands' third quarter 2007 total sales were $830.7 million, up 18.1% compared to the third quarter of 2006, driven by the addition of Stride Rite. Total sales for Payless and Stride Rite were $685.9 million and $144.8 million, respectively, for the third quarter of 2007.
Comparable store sales (which include only Payless results) declined 3.5%. Comparable store sales were affected by lower traffic and unit sales, primarily lower sales of boots, as a result of unseasonably warm weather as well as consumer behavior linked to the economic environment.
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