Stride Rite addition drives Collective Brands Q3 total sales
05 Dec '07
3 min read
"Results in the third quarter show that our hybrid business model gives us strength through diversification even in a challenging business environment," said Matthew E. Rubel, Chief Executive Officer and President.
"The acquisition of Stride Rite during the quarter advances our strategy to bring compelling lifestyle, performance, and fashion brands to footwear consumers worldwide.
The Stride Rite integration is progressing well, and we continue to undertake initiatives which will drive long term earnings in our business higher. Our actions in the third quarter to strengthen gross margin and manage inventory and expenses mitigated the impact of negative comparable store sales."
Gross margin rate for the third quarter of 2007 was 32.2%. Gross margin rate excluding the impact of purchase accounting was 35.6% in the third quarter of 2007. This compares to a gross margin rate of 34.3% in the third quarter of 2006, an increase of 130 basis points.
Approximately 80 basis points of this increase was driven by the mix impact of the higher gross margin rate of Stride Rite.
Approximately 50 basis points of this increase was driven by higher average unit retail prices and more direct sourcing in Payless, partially offset by higher product markdowns and higher occupancy expenses.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
