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Brown Shoe establishes 2008 EPS guidance
06 Mar '08
3 min read
Brown Shoe Company Inc reported results for the fourth quarter and full-year fiscal 2007 ended February 2, 2008.
Net sales in the fourth quarter decreased 10.6 percent to $571.4 million compared to $639.3 million in the year ago quarter. Net earnings in the fourth quarter increased 2.7 percent to $14.0 million, or $0.33 per diluted share, compared to $13.6 million, or $0.31 per diluted share, in the year ago quarter.
As explained below, net earnings and net earnings per diluted share in both fiscal years were impacted by charges related to the Company's Earnings Enhancement Plan and other non-recurring costs.
Additionally, the fourth quarter of 2006 included an extra week because of the fifty-three week fiscal calendar in 2006. The additional week resulted in $22.5 million of net sales in 2006 but did not materially impact net earnings or net earnings per diluted share.
Ron Fromm, Brown Shoe's Chairman and CEO, stated, "While fiscal 2007 was a challenging year for the industry, it was also a year of progress for Brown Shoe. In the first half of the year we enjoyed momentum from a strong 2006, however pressures on the consumer led to reduced consumer spending and traffic levels in the back half of 2007.
I am proud of the way our team managed the business by adjusting the flow of product, at both retail and wholesale, using promotions and markdowns to ensure currency of inventory, and managing expenses.
We are in solid shape as we start 2008. More importantly, we made progress on our strategic plans by further laying the groundwork in 2007. We opened 110 new Famous Footwear stores and continue to focus on the opportunity to be the leading branded family value footwear retailer in the country.
Net sales in the fourth quarter decreased 10.6 percent to $571.4 million compared to $639.3 million in the year ago quarter. Net earnings in the fourth quarter increased 2.7 percent to $14.0 million, or $0.33 per diluted share, compared to $13.6 million, or $0.31 per diluted share, in the year ago quarter.
As explained below, net earnings and net earnings per diluted share in both fiscal years were impacted by charges related to the Company's Earnings Enhancement Plan and other non-recurring costs.
Additionally, the fourth quarter of 2006 included an extra week because of the fifty-three week fiscal calendar in 2006. The additional week resulted in $22.5 million of net sales in 2006 but did not materially impact net earnings or net earnings per diluted share.
Ron Fromm, Brown Shoe's Chairman and CEO, stated, "While fiscal 2007 was a challenging year for the industry, it was also a year of progress for Brown Shoe. In the first half of the year we enjoyed momentum from a strong 2006, however pressures on the consumer led to reduced consumer spending and traffic levels in the back half of 2007.
I am proud of the way our team managed the business by adjusting the flow of product, at both retail and wholesale, using promotions and markdowns to ensure currency of inventory, and managing expenses.
We are in solid shape as we start 2008. More importantly, we made progress on our strategic plans by further laying the groundwork in 2007. We opened 110 new Famous Footwear stores and continue to focus on the opportunity to be the leading branded family value footwear retailer in the country.
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