Home / Knowledge / News / Fashion / Consumer spending environment remains challenging in Q1 - Brown Shoe
Consumer spending environment remains challenging in Q1 - Brown Shoe
28
May '09
Brown Shoe Company, Inc. reported results for the first quarter of fiscal 2009 ended May 2, 2009.

First Quarter 2009 Results
· Net sales were $538.7 million, a decrease of 2.8 percent compared to $554.5 million in the year ago quarter;
· Net loss attributable to Brown Shoe Company, Inc. (hereafter “net loss”) was $7.6 million, or $0.18 per diluted share, inclusive of information technology initiatives costs of $0.04 per diluted share. This compares to net earnings attributable to Brown Shoe Company, Inc. (hereafter “net earnings”) in the first quarter of 2008 of $7.2 million, or $0.17 per diluted share, which included a net gain of $0.12 per diluted share from insurance recoveries, net of associated fees and costs, related to environmental remediation, partially offset by costs from the Company's headquarters consolidation initiatives;
· Cash and cash equivalents totaled $46.1 million at quarter-end;
· Debt, net of cash and cash equivalents, was reduced by $32.7 million from the end of fiscal 2008; and
· Average inventory per store at quarter-end was down 5.1 percent at Famous Footwear versus the prior year period and down 5.6 percent, on a constant dollar basis, at the Company's North American Specialty Retail stores.

Ron Fromm, Brown Shoe's Chairman and CEO, stated,“As anticipated, the consumer spending environment remained challenging in the first quarter, which negatively impacted our sales and profitability. During the quarter, we were successful in advancing our key priorities that focused on managing expenses, inventory, working capital and debt, while maximizing opportunities within our largest businesses of Famous Footwear, Naturalizer, and Dr. Scholl's. As a result, our sales and operating performance were slightly better than our expectations, we generated positive cash flow, and we lowered our net borrowings by more than $30 million from the end of last year.”

Fromm concluded, “While sentiment in the industry may have improved some since last quarter, visibility remains difficult, so we will continue to manage our business with discipline, focusing on expense, capital, and balance sheet management. In keeping with this objective, we have decreased our Famous Footwear store opening plan for 2009 and we now expect net openings to be flat to down 15 in 2009 (open 55 and close 55 to 70). Additionally, we are planning net store closings of approximately 30 stores per year in 2010 and 2011. We expect sequential improvement of operating results in the second quarter, resulting in a narrower loss than in the first quarter, and that our efforts to manage expenses will enable us to generate positive net earnings for the full-year.”

Consolidated Results for First Quarter 2009:
- Net sales were $538.7 million, a decrease of 2.8 percent compared to $554.5 million in the first quarter of 2008. Famous Footwear net sales were $317.6 million, a decline of 0.4 percent from the first quarter of last year, as same-store sales declined 4.9 percent in the quarter, partially offset by operating 66 more stores. Net sales at the Company's wholesale division decreased by 5.0 percent in the quarter versus the same period last year, with net sales of Naturalizer increasing by 0.6 percent versus the same period last year and Dr. Scholl's decreasing by 5.1 percent;


Must ReadView All

Trump announces tariffs on $200 bn worth Chinese imports

Apparel/Garments | On 18th Sep 2018

Trump announces tariffs on $200 bn worth Chinese imports

US President Donald Trump escalated the trade war with China on...

Courtesy: Sunrise Bumi Textiles

Textiles | On 18th Sep 2018

Sunrise Bumi developing new products for profitability

Sunrise Bumi Textiles, one of the world's leading quality yarn...

New Zealand bans sheep mulesing

Textiles | On 18th Sep 2018

New Zealand bans sheep mulesing

New Zealand has banned the practice of mulseing sheep, making the...

Interviews View All

Manuj Terapanthi, Texaura

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Luke Otten, Wigwam Mills Inc

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Md Hanifur Rahman, Aman Group

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Urmil Arya,

Urmil Arya

Sushila International, a well established textile organisation established ...

Harsh Shah,

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Abhishek Dhanuka,

Abhishek Dhanuka

Vyom International Pvt Ltd, established in 2002, is one of Surat's leading ...

Iago Castro Asensio, RCfil Distribuciones S.L.

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Davide Vigano, Sensoria

Davide Vigano
Sensoria

Sensoria is a leading developer of smart garments and IoMe (Internet of...

Razvan Popescu, Directa Plus SpA

Razvan Popescu
Directa Plus SpA

Directa Plus is one of the largest producers and suppliers worldwide of...

Mike Hoffman, Gildan Activewear SRL

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Sonam & Paras Modi, SVA

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

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


September 2018

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

news category


Related Categories:

Advanced Search