This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Brown Shoe Narrows 2Q Loss On Lower Costs

Stocks in this article: BWS

ST. LOUIS (AP) â¿¿ Brown Shoe Company Inc., which owns the Famous Footwear and Naturalizer shoe store chains, said Tuesday that its second-quarter loss shrank as it cut costs. But revenue fell slightly below expectations and the company said it remains cautious about the weak economy, sending shares tumbling.

High unemployment and uncertainty about the recovery have weighed on U.S. consumer spending in spring and early summer. Brown Shoe said

For the quarter ended July 28, the St. Louis-based company posted a loss of $2.5 million, or 6 cents per share, compared with a loss of $4.6 million, or 11 cents per share, in the same quarter last year. Excluding costs for exiting some of its brands and closing facilities, the company said it posted an adjusted profit of 16 cents per share. Analysts, on average, had expected a profit of just 3 cents per share, according to a FactSet poll.

Revenue fell 3 percent to $599.3 million from $620.6 million due to exiting some brands, an expected drop in Dr. Scholl's sales as the brand completes a turnaround effort and slightly light Naturalizer sales. That fell slightly short of the $607.2 million expected by analysts. The drop was offset in part by a 6 percent drop in selling and administrative expenses to $219.3 million. Gross profit margin or profitability improved to 39 percent from 37.6 percent in 2011.

Sales at the company's Famous Footwear chain rose nearly 2 percent to $350.3 million on higher demand for sandals and running shoes. A key retail metric that excludes newly opened of closed stores rose about 4 percent. Sales in the company's wholesale division fell 9 percent to $195 million. Brown Shoe expects sales in that unit to drop this year as it shuts down parts of the business.

Looking forward, the company lifted the bottom end of its 2012 profit forecast to 85 cents from 83 cents previously, but maintained the top end of the range at 95 cents per share. Analysts expect 88 cents per share, on average. Brown Shoe also backed its previous revenue prediction of $2.57 billion to $2.59 billion. Analysts expect $2.57 billion.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs