Home / Knowledge / News / Fashion / Brown Shoe Specialty Retail segment sales up
Brown Shoe Specialty Retail segment sales up
02
Sep '08
Brown Shoe Company Inc reported results for the second quarter of 2008 ended August 2.

Net sales in the second quarter decreased 1.3 percent to $569.2 million compared to $576.6 million in the year-ago quarter. Net earnings in the second quarter decreased 77.4 percent to $2.2 million, or $0.05 per diluted share, which includes costs of $0.15 per diluted share, primarily related to the relocation of the Company's Famous Footwear division headquarters from Madison, WI to St. Louis, MO. This compares to net earnings of $9.8 million, or $0.22 per diluted share, in the year-ago quarter, which included $0.08 per diluted share of costs related to the Company's Earnings Enhancement Plan.

Ron Fromm, Brown Shoe's Chairman and CEO, stated, “During the second quarter, we continued to focus on advancing our long-term goals, while managing the business in an ongoing challenging retail environment. While sales and earnings were impacted by reduced store traffic and increased promotional activity across our industry, our expenses and inventory were well controlled, as we emphasized cost discipline and our freshness and velocity strategies. At the same time, we continued to invest in our brands, our stores, and infrastructure in support of our long-term growth.”

Fromm continued, “To this end, we announced plans to implement a new enterprise resource planning system to transform the information technology infrastructure for our integrated business model, we made significant progress on the transition of Famous Footwear to St. Louis, and we continued to improve our product design competencies across our brands.

We believe these initiatives along with the diversification and growth from new brand launches, such as Fergie and our partnership with Vera Wang to design and market her Lavender Label Collection, will enable Brown Shoe to become a stronger more resilient company in the future.

Even so, we are taking a cautious approach to the back half of 2008 by appropriately reducing guidance and tightening our standards for capital management. As a result, we now expect 90 new store openings for Famous Footwear for the year, versus our original plan of 130. While we expect the retail environment to remain uncertain, we believe we are in a position of strength and expect to win market share while executing to our long-term strategic goals.”

Consolidated Results for Second Quarter of 2008:
• Net sales were $569.2 million, a decrease of 1.3 percent compared to $576.6 million in the second quarter of 2007;

• Gross margins in the second quarter of 2008 decreased 80 basis points to 39.3 percent of net sales from 40.1 percent of net sales in the second quarter of 2007. This decrease was driven by increased promotions at the Company's retail
division as well as an increased sales mix of licensed brands versus owned brands, an increased mix of mid-tier sales, and higher allowances in its Wholesale division;


Must ReadView All

Courtesy: ITMA 2015

Textiles | On 21st Jun 2018

Italy to host textile machinery fair ITMA in 2023

ITMA, the trendsetting textile and garment technology platform, will...

Courtesy: Connor Group

Textiles | On 21st Jun 2018

Protectionism top threat to textile sourcing: William Connor

Protectionism is the biggest political factor and threat affecting...

NRF urges US Congress to step in, stop trade war

Apparel/Garments | On 21st Jun 2018

NRF urges US Congress to step in, stop trade war

The National Retail Federation (NRF) recently urged the US Congress...

Interviews View All

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Carolin Russ

Weko, Weitmann & Konrad GmbH & Co KG, based in south Germany, is...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search