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Brown Shoe profit doubles in Q1, sales jump
25 May '06
3 min read
Footwear retailer Brown Shoe Company Inc has reported a 10.0 percent increase in consolidated net sales to $575,538,000 for the first quarter of fiscal 2006, ended April 29, versus $523,283,000 in the year-ago period.
Net earnings were $10,031,000 versus net earnings of $3,779,000 on a post-split basis, the year before. All per-share numbers are adjusted for the company's 3-for-2 stock split, effective April 3rd 2006.
"We are pleased to report first quarter results that were both solid and slightly ahead of our expectations," said Brown Shoe Chairman and CEO Ron Fromm.
"Sales gained momentum during the quarter, with the late Easter leading to an outstanding April for Famous Footwear. As previously forecast, our first quarter performance at wholesale reflected difficult comparisons with last year as a higher quality, continuous-flow, sell-in model has been deployed by our Naturalizer division. In addition, results were adversely affected by the timing of children's license sales, which should improve by the second quarter of 2006."
"Our consumer is telling us she wants fresh new styles each season. Therefore, we continue to focus on retail sell-through rates and increasing our turns while managing our business with less inventory. This is consistent with our commitment to react faster to consumer demand and changing trends, and should, we believe, lead to improved earnings for both Famous Footwear and our Wholesale business over the rest of the year," Fromm said.
Net earnings were $10,031,000 versus net earnings of $3,779,000 on a post-split basis, the year before. All per-share numbers are adjusted for the company's 3-for-2 stock split, effective April 3rd 2006.
"We are pleased to report first quarter results that were both solid and slightly ahead of our expectations," said Brown Shoe Chairman and CEO Ron Fromm.
"Sales gained momentum during the quarter, with the late Easter leading to an outstanding April for Famous Footwear. As previously forecast, our first quarter performance at wholesale reflected difficult comparisons with last year as a higher quality, continuous-flow, sell-in model has been deployed by our Naturalizer division. In addition, results were adversely affected by the timing of children's license sales, which should improve by the second quarter of 2006."
"Our consumer is telling us she wants fresh new styles each season. Therefore, we continue to focus on retail sell-through rates and increasing our turns while managing our business with less inventory. This is consistent with our commitment to react faster to consumer demand and changing trends, and should, we believe, lead to improved earnings for both Famous Footwear and our Wholesale business over the rest of the year," Fromm said.
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