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8-K - FORM 8-K - CALERES INC | bws8k030310.htm |
BROWN
SHOE REPORTS FOURTH QUARTER AND FULL-YEAR 2009 FINANCIAL RESULTS
|
|
● Famous
Footwear fourth quarter same-store sales increased 9.0
percent
|
|
● Specialty
Retail fourth quarter same-store sales increased 7.6
percent
|
|
|
● Fourth
quarter GAAP net earnings per share were $0.12; Adjusted net earnings per
share were $0.19
|
|
|
● Announces
participation in investor
conference
|
ST.
LOUIS, MISSOURI, March 3, 2010 – Brown Shoe Company, Inc. (NYSE:BWS) reported
results for the fourth quarter and full year 2009 ended January 30,
2010.
Fourth
Quarter Highlights
·
|
Net
sales in the fourth quarter of 2009 increased 8.6 percent versus the
year-ago quarter;
|
·
|
Gross
profit rate in the fourth quarter of 2009 increased by 390 basis points,
versus the same period last year, to 41.1 percent of net
sales;
|
·
|
Net
earnings attributable to Brown Shoe Company, Inc. (hereafter “net
earnings” or “net loss”) were $5.0 million in the fourth quarter of 2009,
or $0.12 per diluted share, compared to a net loss of $153.0 million, or
$3.68 per diluted share, in the fourth quarter of 2008;
and
|
·
|
Adjusted
net earnings for the fourth quarter of 2009 were $8.1 million, or $0.19
per diluted share, compared to an adjusted net loss of $11.5 million, or
$0.28 per diluted share, in the year-ago period. See Schedule 4
attached for a reconciliation to net earnings on a GAAP basis and the
discussion of “Non-GAAP Financial Measures”
below.
|
Ron
Fromm, Brown Shoe’s Chairman and Chief Executive Officer, said, “We are pleased
to report better-than-expected fourth quarter results and an overall strong
second-half performance. This achievement is even more gratifying
given the challenging economic environment that existed throughout the
year. Our core brands, Famous Footwear, Naturalizer, and Dr.
Scholl’s, led the way. Both Famous Footwear and Naturalizer delivered
high-single digit same-store sales increases in the quarter and demonstrated the
strength of their multi-channel offerings with double digit gains in their
direct-to-consumer businesses. Fresh, on-trend product that provided
excitement for shoppers, strong inventory management, and more full-priced
selling led to a 390 basis point increase in our gross profit rate in the
quarter.”
Fromm
concluded, “As we look to 2010, we will continue our strategies of driving
profitable sales from our core brands, while focusing on improving the
productivity of our store base. This requires continuously enhancing
product styling and innovation in our brands and retail assortments, evolving
impactful consumer engagement programs, and generating greater efficiencies from
our operating platform. We are encouraged that the trends we saw in
the fourth quarter have continued into the first quarter and, while there
remains uncertainty as to the pace of economic recovery, we believe we will see
a return to mid-single digit sales growth for Brown Shoe during the year coupled
with a doubling of our earnings in the next 12 to 15 months.”
Consolidated
Results for the Fourth Quarter of 2009:
·
|
Net
sales were $566.0 million in the fourth quarter of 2009, an increase of
8.6 percent, compared to $521.0 million in the fourth quarter of
2008.
|
o
|
Famous
Footwear net sales in the quarter were $342.7 million, a record fourth
quarter result and an increase of 9.7 percent from the fourth quarter of
last year, driven by a 9.0 percent same-store sales
increase;
|
o
|
Net
sales at the Company’s Wholesale division were $151.1 million in the
fourth quarter of 2009, an increase of 5.8 percent versus the same period
last year; and
|
o
|
Net
sales in the Company’s Specialty Retail division during the fourth quarter
of 2009 increased 9.5 percent versus the same period last year to $72.2
million, reflecting a 7.6 percent same-store sales increase during the
quarter.
|
·
|
Gross
profit rate in the fourth quarter of 2009 increased 390 basis points to
41.1 percent of net sales from 37.2 percent of net sales in the fourth
quarter of 2008.
|
o
|
The
key drivers were an increase in gross profit rate in its retail divisions
during the fourth quarter of 2009 versus the same period last
year. Specifically, Famous Footwear achieved a 290 basis point
improvement, driven by strong sales in the toning, boot, and accessories
categories, and its Specialty Retail division generated a 130 basis point
improvement, resulting from strong product styling and more full-priced
selling;
|
o
|
Additionally,
a 710 basis point improvement in gross profit rate in its Wholesale
division, driven primarily by lower markdowns and allowances resulting
from improved sell-through rates at retail, contributed to the increase in
consolidated gross profit rate.
|
·
|
Selling
and administrative expenses in the fourth quarter of 2009 increased by
$4.3 million to $218.0 million, or 38.5 percent of net sales, versus
$213.7 million, or 41.0 percent of net sales, in the same period last
year. The year-over-year increase was primarily related to
increased incentive compensation costs, due to improved financial
performance, and the timing of marketing programs. These
increases were partially offset by operating 28 fewer North American
stores in its Famous Footwear and Specialty Retail divisions as well as
expense controls across the
enterprise;
|
·
|
Net
restructuring and other special charges were $5.1 million in the fourth
quarter of 2009 and $36.0 million in the fourth quarter of last
year. Charges in 2009 included costs related to the
organizational changes announced in November of 2009 and the Company’s
information technology initiatives, partially offset by a reduction of
reserves for future lease costs from its vacated Madison, WI
headquarters. Charges in the fourth quarter of 2008 reflected
costs related to its expense and capital containment initiatives,
headquarters consolidation, and information technology
initiatives. In addition, in the fourth quarter of 2008, the
Company recorded a non-cash charge of $149.2 million related to impairment
of goodwill and intangible assets;
|
·
|
Operating
earnings in the fourth quarter of 2009 were $9.3 million compared to an
operating loss of $205.1 million in the fourth quarter of
2008. Adjusted for net restructuring and other special charges
and impairment of goodwill and intangible assets, operating earnings in
the quarter were $14.4 million versus an operating loss of $20.0 million
in the year-ago period;
|
·
|
Net
interest expense in the fourth quarter of 2009 was $5.0 million, an
increase of $0.5 million from the year-ago period, primarily due to higher
average borrowings on the Company’s revolving credit
facility;
|
·
|
The
Company recognized a $0.4 million tax benefit in the fourth quarter of
2009. This compares to a $55.6 million tax benefit in the
fourth quarter of last year, primarily due to the impairment of goodwill
and intangible assets and net restructuring and other special
charges;
|
·
|
Net
earnings in the fourth quarter of 2009 were $5.0 million, or $0.12 per
diluted share, versus a net loss of $153.0 million, or $3.68 per diluted
share, in the year-ago quarter. Fourth quarter of 2009 net
earnings included after-tax charges of $2.8 million, or $0.07 per diluted
share, related to the Company’s organizational changes announced in
November of 2009 and $1.4 million, or $0.03 per diluted share, related to
its information technology initiatives. These costs were
partially offset by after-tax income of $1.1 million, or $0.03 per diluted
share, related to the reduction of reserves for future lease costs from
its vacated Madison, WI offices. Fourth quarter of 2008 net
loss included after-tax charges of $141.5 million, or $3.40 per diluted
share, related to impairment of goodwill and intangible assets and net
restructuring and other special
charges;
|
·
|
On
an adjusted basis, excluding the above charges and recoveries, net
earnings for the fourth quarter of 2009 were $8.1 million, or $0.19 per
diluted share, compared to a net loss of $11.5 million, or $0.28 per
diluted share, in the year-ago
period;
|
·
|
Inventory
at quarter-end was $456.7 million, a 2.0 percent decrease from the
year-ago level of $466.0 million. Inventory at its Wholesale
division decreased 21.8 percent year-over-year reflecting the general
decrease of inventory levels across retail channels as a result of the
economic environment, as well as the anniversary of an ice storm in
January of 2009, which caused some shipments to be pushed from the fourth
quarter of 2008 into the first quarter of 2009. Average
inventory on a per-store basis at Famous Footwear increased 8.0 percent at
quarter-end, reflecting the improved trend of footwear sales and the
investment in the higher-priced toning category for the spring
season;
|
·
|
At
quarter-end, the Company’s borrowings against its revolving credit
facility were $94.5 million versus $112.5 million during the same period
last year. Cash and cash equivalents at quarter-end were $125.8
million, a 44.8 percent increase from the prior
year.
|
Outlook
Based on
the current outlook, the Company expects the following:
·
|
Consolidated
net sales for the full year of 2010 are expected to grow in the mid-single
digit range, with first quarter net sales expected to increase in the
low-single digits;
|
·
|
Famous
Footwear same-store sales for the full year of 2010 are expected to grow
in the low- to mid-single digit range, with first quarter same-store sales
expected to grow in the high-single digit range. Famous
Footwear is currently expected to open 25 new stores while closing 50
stores in 2010;
|
·
|
Wholesale
net sales are currently estimated to grow in the high-single to low-double
digit range for the full year of 2010, with flat to low-single digit
growth in the first quarter;
|
·
|
Selling
and administrative expenses as a percent of net sales are expected to be
in the range of 37.5 to 38.0 percent for the full year of 2010, which
excludes costs of $7.0 million to $7.5 million related to the Company’s
information technology initiatives;
|
·
|
Depreciation
and amortization of capitalized software and intangible assets are
expected to total $51.0 million to $53.0 million for the full year of
2010;
|
·
|
Net
interest expense is expected to approximate $21.0 million to $22.0 million
for the full year of 2010;
|
·
|
The
Company expects a tax rate of 33.0 to 34.0 percent for the full year of
2010; and
|
·
|
Purchases
of property and equipment and capitalized software are targeted in the
range of $60.0 million to $65.0 million for the full year of
2010.
|
Participation
in Investor Conference
The
Company also announced that it will be presenting at the Bank of America Merrill
Lynch 2010 Consumer Conference, held at the Palace Hotel in New York City on
Thursday, March 11, at 2:30 p.m. Eastern Time. Ron Fromm, Chairman and Chief
Executive Officer, will host the presentation. The presentation, including the
question-and-answer portion, will be webcast live at www.brownshoe.com/investor.
Definitions
Consistent
with guidance issued by the FASB on non-controlling interests in consolidated
financial statements, all references in this press release, outside of the
condensed consolidated financial statements that follow, unless otherwise noted,
related to net earnings (loss) attributable to Brown Shoe Company, Inc. and
diluted earnings (loss) per common share attributable to Brown Shoe Company,
Inc. shareholders, are presented as net earnings (loss) and earnings (loss) per
diluted share, respectively.
Non-GAAP
Financial Measures
In this press release, the Company’s
financial results are provided both in accordance with generally accepted
accounting principles (GAAP) and using certain non-GAAP financial measures. In
particular, the Company provides historic and estimated future net earnings
(loss) and earnings (loss) per diluted share adjusted to exclude certain charges
and recoveries, which are non-GAAP financial measures. These results are
included as a complement to results provided in accordance with GAAP because
management believes these non-GAAP financial measures help identify underlying
trends in the Company’s business and provide useful information to both
management and investors by excluding certain items that may not be indicative
of the Company’s core operating results. These measures should not be considered
a substitute for or superior to GAAP results.
Conference
Call
A
conference call to discuss fourth quarter and full-year 2009 results will be
held today at 9:00 a.m.
ET. While participation in the question-and-answer session of
the call will be limited to institutional analysts and investors, retail brokers
and individual investors are invited to attend via a live web-cast at www.brownshoe.com/investor
or www.earnings.com (at
the website, type in the BWS ticker symbol to locate the
broadcast).
Safe
Harbor Statement Under the Private Securities Litigation Reform Act of
1995:
This
press release contains certain forward-looking statements and expectations
regarding the Company's future performance and the future performance of its
brands. Such statements are subject to various risks and uncertainties that
could cause actual results to differ materially. These include (i)
changing consumer demands, which may be influenced by consumers' disposable
income, which in turn can be influenced by general economic conditions; (ii) the
timing and uncertainty of activities and costs related to the Company’s
information technology initiatives, including software implementation and
business transformation; (iii) potential disruption to the Company’s business
and operations as it implements its information technology initiatives; (iv) the
Company’s ability to utilize its new information technology system to
successfully execute its strategies; (v) intense competition within the footwear
industry; (vi) rapidly changing fashion trends and purchasing patterns; (vii)
customer concentration and increased consolidation in the retail industry;
(viii) political and economic conditions or other threats to continued and
uninterrupted flow of inventory from China and Brazil, where the Company relies
heavily on third-party manufacturing facilities for a significant amount of its
inventory; (ix) the Company's ability to attract and retain licensors and
protect its intellectual property; (x) the Company's ability to secure/exit
leases on favorable terms; (xi) the Company's ability to maintain relationships
with current suppliers; (xii) compliance with applicable laws and standards with
respect to lead content in paint and other product safety issues; and (xiii) the
Company’s ability to successfully execute its international growth
strategy. The Company's reports to the Securities and Exchange
Commission contain detailed information relating to such factors, including,
without limitation, the information under the caption “Risk Factors” in Item 1A
of the Company’s Annual Report on Form 10-K for the year ended January 31, 2009,
which information is incorporated by reference herein and updated by the
Company’s Quarterly Reports on Form 10-Q. The Company does not undertake any
obligation or plan to update these forward-looking statements, even though its
situation may change.
About
Brown Shoe Company, Inc.
Brown
Shoe is a $2.2 billion footwear company with global operations. Brown
Shoe’s Retail division operates Famous Footwear, the more than 1,100-store chain
that sells brand name shoes for the family, approximately 300 specialty retail
stores in the U.S., Canada, and China primarily under the Naturalizer brand
name, and footwear e-tailer shoes.com. Through its wholesale divisions, Brown
Shoe markets leading footwear brands including Naturalizer, Dr. Scholl's, Franco
Sarto, LifeStride, Etienne Aigner, Sam Edelman, Via Spiga, Vera Wang Lavender
and Buster Brown. Brown Shoe press releases are available on the
Company's website at www.brownshoe.com.
Contacts: | |
For investors: | For media: |
Ken Golden | Erin Conroy |
Brown Shoe Company, Inc. | Brown Shoe Company, Inc. |
kgolden@brownshoe.com | econroy@brownshoe.com |
314-854-4134 | 212-324-4515 |
SCHEDULE
1
BROWN
SHOE COMPANY, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
Thirteen
Weeks Ended
|
Fifty-two
Weeks Ended
|
|||||||||||
(Thousands,
except per share data)
|
January
30,
2010
|
January
31,
2009
|
January
30,
2010
|
January
31,
2009
|
||||||||
Net
sales
|
$
|
565,972
|
$
|
520,995
|
$
|
2,241,968
|
$
|
2,276,362
|
||||
Cost
of goods sold
|
333,580
|
327,209
|
1,338,829
|
1,394,126
|
||||||||
Gross
profit
|
232,392
|
193,786
|
903,139
|
882,236
|
||||||||
Selling
and administrative expenses
|
217,972
|
213,690
|
859,693
|
851,893
|
||||||||
Impairment
of goodwill and intangible assets
|
–
|
149,150
|
–
|
149,150
|
||||||||
Restructuring
and other special charges, net
|
5,089
|
36,028
|
11,923
|
54,278
|
||||||||
Equity
in net loss of nonconsolidated affiliate
|
–
|
47
|
–
|
216
|
||||||||
Operating
earnings (loss)
|
9,331
|
(205,129
|
)
|
31,523
|
(173,301
|
)
|
||||||
Interest
expense
|
(5,003
|
)
|
(4,707
|
)
|
(20,195
|
)
|
(17,105
|
)
|
||||
Interest
income
|
34
|
250
|
374
|
1,800
|
||||||||
Earnings
(loss) before income taxes
|
4,362
|
(209,586
|
)
|
11,702
|
(188,606
|
)
|
||||||
Income
tax benefit (provision)
|
364
|
55,552
|
(1,259
|
)
|
53,793
|
|||||||
Net
earnings (loss)
|
$
|
4,726
|
$
|
(154,034
|
)
|
$
|
10,443
|
$
|
(134,813
|
)
|
||
Less:
Net (loss) earnings attributable to noncontrolling
interests
|
(322
|
)
|
(986
|
)
|
943
|
(1,575
|
)
|
|||||
Net
earnings (loss) attributable to Brown Shoe
Company, Inc.
|
$
|
5,048
|
$
|
(153,048
|
)
|
$
|
9,500
|
$
|
(133,238
|
)
|
||
Basic
earnings (loss) per common share attributable
to Brown Shoe Company, Inc.
shareholders
|
$
|
0.12
|
$
|
(3.68
|
)
|
$
|
0.22
|
$
|
(3.21
|
)
|
||
Diluted
earnings (loss) per common share attributable
to Brown Shoe Company, Inc.
shareholders
|
$
|
0.12
|
$
|
(3.68
|
)
|
$
|
0.22
|
$
|
(3.21
|
)
|
||
Basic
number of shares
|
41,602
|
41,552
|
41,585
|
41,525
|
||||||||
Diluted
number of shares
|
41,777
|
41,552
|
41,649
|
41,525
|
SCHEDULE 2
BROWN
SHOE COMPANY, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Thousands)
|
January
30, 2010
|
January 31, 2009 |
|
||||
ASSETS
|
|||||||
Cash
and cash equivalents
|
$
|
125,833
|
$
|
86,900
|
|||
Receivables
|
84,297
|
84,252
|
|||||
Inventories
|
456,682
|
466,002
|
|||||
Deferred
income taxes
|
17,894
|
19,888
|
|||||
Income
taxes
|
4,163
|
6,980
|
|||||
Prepaid
expenses and other current assets
|
19,380
|
17,421
|
|||||
Total current
assets
|
708,249
|
681,443
|
|||||
Other
assets
|
110,810
|
85,456
|
|||||
Deferred
income taxes
|
2,304
|
17,681
|
|||||
Intangible
assets, net
|
77,226
|
84,000
|
|||||
Property
and equipment, net
|
141,561
|
157,451
|
|||||
Total
assets
|
$
|
1,040,150
|
$
|
1,026,031
|
|||
LIABILITIES
AND EQUITY
|
|||||||
Borrowings
under revolving credit agreement
|
$
|
94,500
|
$
|
112,500
|
|||
Trade
accounts payable
|
177,700
|
152,339
|
|||||
Accrued
expenses
|
141,863
|
137,307
|
|||||
Total
current liabilities
|
414,063
|
402,146
|
|||||
Long-term
debt
|
150,000
|
150,000
|
|||||
Deferred
rent
|
38,869
|
41,714
|
|||||
Other
liabilities
|
25,991
|
29,957
|
|||||
Total
other liabilities
|
214,860
|
221,671
|
|||||
Total
Brown Shoe Company, Inc. shareholders’ equity
|
402,171
|
394,104
|
|||||
Noncontrolling
interests
|
9,056
|
8,110
|
|||||
Total
equity
|
411,227
|
402,214
|
|||||
Total
liabilities and equity
|
$
|
1,040,150
|
$
|
1,026,031
|
SCHEDULE
3
BROWN
SHOE COMPANY, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Fifty-two
Weeks Ended
|
|||||||
(Thousands)
|
January
30, 2010
|
January
31, 2009
|
|||||
OPERATING
ACTIVITIES:
|
|||||||
Net
earnings (loss)
|
$
|
10,443
|
$
|
(134,813
|
)
|
||
Adjustments
to reconcile net earnings (loss) to net cash provided by
operating
activities:
|
|||||||
Depreciation
|
36,459
|
39,937
|
|||||
Amortization
of capitalized software
|
7,867
|
7,812
|
|||||
Amortization
of intangibles
|
6,774
|
7,124
|
|||||
Amortization
of debt issuance costs
|
2,195
|
1,637
|
|||||
Share-based
compensation expense
|
4,673
|
2,601
|
|||||
Loss
on disposal of facilities and equipment
|
1,180
|
1,065
|
|||||
Impairment
charges for facilities and equipment
|
3,928
|
2,657
|
|||||
Impairment
of goodwill and intangible assets
|
–
|
149,150
|
|||||
Deferred
rent
|
(2,845
|
)
|
249
|
||||
Deferred
income taxes
|
15,414
|
(51,248
|
)
|
||||
Provision
for doubtful accounts
|
727
|
548
|
|||||
Foreign
currency transaction (gains) losses
|
(106
|
)
|
131
|
||||
Undistributed
loss of nonconsolidated affiliate
|
–
|
216
|
|||||
Changes
in operating assets and liabilities:
|
|||||||
Receivables
|
(714
|
)
|
35,644
|
||||
Inventories
|
11,166
|
(29,196
|
)
|
||||
Prepaid
expenses and other current and non-current assets
|
(1,601
|
)
|
(373
|
)
|
|||
Trade
accounts payable
|
24,987
|
(27,213
|
)
|
||||
Accrued
expenses and other liabilities
|
285
|
22,406
|
|||||
Income
taxes
|
2,800
|
(834
|
)
|
||||
Other,
net
|
(5,554
|
)
|
6,836
|
||||
Net
cash provided by operating activities
|
118,078
|
34,336
|
|||||
INVESTING
ACTIVITIES:
|
|||||||
Purchases
of property and equipment
|
(24,880
|
)
|
(60,417
|
)
|
|||
Capitalized
software
|
(25,098
|
)
|
(16,327
|
)
|
|||
Investments
in consolidated companies
|
–
|
(7,683
|
)
|
||||
Cash
recognized on initial consolidation
|
–
|
3,337
|
|||||
Net
cash used for investing activities
|
(49,978
|
)
|
(81,090
|
)
|
|||
FINANCING
ACTIVITIES:
|
|||||||
Borrowings
under revolving credit agreement
|
848,900
|
655,500
|
|||||
Repayments
under revolving credit agreement
|
(866,900
|
)
|
(558,000
|
)
|
|||
Debt
issuance costs
|
–
|
(7,500
|
)
|
||||
Proceeds
from stock options exercised
|
107
|
313
|
|||||
Tax
impact of share-based plans
|
(58
|
)
|
498
|
||||
Dividends
paid
|
(12,009
|
)
|
(11,855
|
)
|
|||
Net
cash (used for) provided by financing activities
|
(29,960
|
)
|
78,956
|
||||
Effect
of exchange rate changes on cash
|
793
|
(5,103
|
)
|
||||
Increase
in cash and cash equivalents
|
38,933
|
27,099
|
|||||
Cash
and cash equivalents at beginning of year
|
86,900
|
59,801
|
|||||
Cash
and cash equivalents at end of year
|
$
|
125,833
|
$
|
86,900
|
SCHEDULE
4
BROWN
SHOE COMPANY, INC.
Reconciliation
of Operating Earnings, Net Earnings and Diluted Earnings Per Share (GAAP Basis)
to Adjusted Operating Earnings, Net Earnings and Diluted Earnings Per Share
(Non-GAAP Basis)
4th
Quarter 2009
|
4th
Quarter 2008
|
||||||||||||
(Thousands,
except per share data)
|
Operating
Earnings
|
Net
Earnings
Attributable to Brown Shoe Company, Inc.
|
Diluted
Earnings
Per Share
|
Operating
Loss
|
Net
Loss Attributable to Brown Shoe Company, Inc.
|
Diluted
Loss
Per Share
|
|||||||
GAAP
earnings (loss)
|
$
9,331
|
$
5,048
|
$
0.12
|
($
205,129
|
)
|
($
153,048
|
)
|
($
3.68
|
)
|
||||
Charges
/ Other Items:
|
|||||||||||||
Impairment
of goodwill and intangible assets
|
–
|
–
|
–
|
149,150
|
119,203
|
2.87
|
|||||||
Expense
and capital containment initiatives
|
–
|
–
|
–
|
30,876
|
19,091
|
0.46
|
|||||||
Headquarters
consolidation
|
(1,864
|
)
|
(1,139
|
)
|
(0.03
|
)
|
2,807
|
1,739
|
0.04
|
||||
IT
initiatives
|
2,329
|
1,371
|
0.03
|
2,345
|
1,507
|
0.03
|
|||||||
Organizational
changes
|
4,624
|
2,825
|
0.07
|
–
|
–
|
–
|
|||||||
Total
charges / other items
|
5,089
|
3,057
|
0.07
|
185,178
|
141,540
|
3.40
|
|||||||
Adjusted
earnings (loss)
|
$
14,420
|
$
8,105
|
$
0.19
|
($
19,951
|
)
|
($
11,508
|
)
|
($
0.28
|
)
|
2009
|
2008
|
|||||||||||||
(Thousands,
except per share data)
|
Operating
Earnings
|
Net
Earnings
Attributable to Brown Shoe Company, Inc.
|
Diluted
Earnings
Per Share
|
Operating
(Loss) Earnings
|
Net
(Loss) Earnings Attributable to Brown Shoe Company, Inc.
|
Diluted
(Loss)
Earnings Per Share
|
||||||||
GAAP
earnings (loss)
|
$
31,523
|
$
9,500
|
$
0.22
|
($
173,301
|
)
|
($
133,238
|
)
|
($
3.21
|
)
|
|||||
Charges
/ Other Items:
|
||||||||||||||
Impairment
of goodwill and intangible assets
|
–
|
–
|
–
|
149,150
|
119,203
|
2.87
|
||||||||
Expense
and capital containment initiatives
|
–
|
–
|
–
|
30,876
|
19,091
|
0.46
|
||||||||
Headquarters
consolidation
|
(1,864
|
)
|
(1,139
|
)
|
(0.03
|
)
|
29,827
|
18,248
|
0.44
|
|||||
IT
initiatives
|
9,163
|
5,772
|
0.14
|
3,741
|
2,404
|
0.06
|
||||||||
Insurance
recoveries, net
|
–
|
–
|
–
|
(10,166
|
)
|
(6,212
|
)
|
(0.15
|
)
|
|||||
Organizational changes | 4,624 | 2,825 | 0.07 |
–
|
–
|
–
|
||||||||
Total
charges / other items
|
11,923
|
7,458
|
0.18
|
203,428
|
152,734
|
3.68
|
||||||||
Adjusted
earnings (loss)
|
$
43,446
|
$
16,958
|
$
0.40
|
$
30,127
|
$
19,496
|
$
0.47
|
SCHEDULE
5
BROWN
SHOE COMPANY, INC.
OPERATING
RESULTS BY SEGMENT
Famous
Footwear
|
Wholesale
Operations
|
Specialty
Retail
|
||||||||||
($
millions)
|
4th
Quarter
2009
|
4th
Quarter
2008
|
4th
Quarter
2009
|
4th
Quarter
2008
|
4th
Quarter
2009
|
4th
Quarter
2008
|
||||||
Net
Sales
|
$342.7
|
$312.3
|
$151.1
|
$142.7
|
$72.2
|
$66.0
|
||||||
Gross
Profit
|
$151.1
|
$128.7
|
$52.2
|
$39.3
|
$29.1
|
$25.7
|
||||||
Gross
Profit Rate
|
44.1%
|
41.2%
|
34.6%
|
27.5%
|
40.3%
|
39.0%
|
||||||
Operating
Earnings (Loss)
|
$13.9
|
$(11.9)
|
$10.7
|
$(146.8)
|
$(2.4)
|
$(19.7)
|
||||||
Operating
Earnings (Loss) %
|
4.0%
|
(3.8)%
|
7.1%
|
(102.9)%
|
(3.3)%
|
(29.9)%
|
||||||
Same-store
Sales %
|
9.0%
|
(3.6)%
|
-
|
-
|
7.6%
|
(0.3)%
|
||||||
Number
of Stores
|
1,129
|
1,138
|
-
|
-
|
282
|
306
|
||||||
Famous
Footwear
|
Wholesale
Operations
|
Specialty
Retail
|
||||||||||
($
millions)
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
||||||
Net
Sales
|
$1,363.6
|
$1,320.0
|
$631.8
|
$703.8
|
$246.6
|
$252.5
|
||||||
Gross
Profit
|
$592.9
|
$571.6
|
$205.8
|
$205.9
|
$104.4
|
$104.7
|
||||||
Gross
Profit Rate
|
43.5%
|
43.3%
|
32.6%
|
29.3%
|
42.4%
|
41.5%
|
||||||
Operating
Earnings (Loss)
|
$44.6
|
$27.0
|
$41.1
|
$(108.1)
|
$(14.2)
|
$(30.5)
|
||||||
Operating
Earnings (Loss) %
|
3.3%
|
2.0%
|
6.5%
|
(15.4)%
|
(5.8)%
|
(12.1)%
|
||||||
Same-store
Sales %
|
0.5%
|
(4.7)%
|
-
|
-
|
0.8%
|
(3.4)%
|
||||||