Brown Shoe Profits Spike

Brown Shoe Profits Spike
Famous Footwear

Brown Shoe Co. posted on Tuesday a 57 percent pop in third-quarter earnings, despite a dip in sales.

Net earnings attributable to Brown Shoe came to $16.3 million, or 38 cents a share, versus $10.4 million, or 25 cents, the prior year. The company had previously expected earnings per share of 36 cents to 37 cents in the most recent quarter.

Revenues were $625.6 million, down from $631.7 million last year. Famous Footwear sales increased 7 percent to $389.2 million, with same-store sales up 4.7 percent.

“Our strategies to offer trend-right product, an enhanced store experience and the increased reach of our marketing communications helped deliver a strong back-to-school selling season at Famous Footwear,” Ron Fromm, chairman and CEO of Brown Shoe, said in a statement. “In addition, improved consumer reaction to our Naturalizer product and our other wholesale brands drove better sell-throughs at retail and, in particular, strong same-store sales results at our Naturalizer stores. This, coupled with our expense and inventory disciplines, drove greater gross margins and improved operating performance in the quarter.”

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