Brown Shoe plans to open 30 outlets in US & Canada

07 Jun '05

5 min read

These actions are expected to be approximately cash neutral as the costs to exit the stores will be substantially offset by the cash generated from liquidating inventories carried in the stores.

"This plan results in a more productive store base. It adds talent to our wholesale organization. And it positions the Naturalizer brand to continue to build brand preference among consumers whether they shop in department stores, specialty stores or our Naturalizer stores," Fromm said.

Updated Financial Guidance
As a result of these charges and costs, the earnings guidance issued on May 25, 2005 of $2.30 to $2.45 per diluted share, changes to $1.75 to $2.00 per share for fiscal 2005. This 2005 earnings guidance includes the Naturalizer charges of $0.45 to $0.55 for lease buyouts, severance, and inventory markdowns, and also, as previously reported, $0.55 per share to repatriate foreign earnings.

For the second quarter, the Company now estimates earnings per share guidance in the range of $0.11 to $0.18, which includes approximately $0.14 to $0.16 in charges related to these actions.

"With this move and our acquisition of Bennett Footwear, we believe we have significantly increased the earnings potential of Brown Shoe on a go- forward basis," said Fromm. "Beginning in 2006, these two initiatives combined should add $0.45 per diluted share to our earnings."

Brown Shoe is a $2.3 billion footwear company with worldwide operationscquisition of Bennett Footwear, we believe we have significantly increased the earnings potential of Brown Shoe on a go- forward basis," said Fromm. "Beginning in 2006, these two initiatives combined should add $0.45 per diluted share to our earnings."

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