This Day On The Street
Continue to site
ADVERTISEMENT
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

Brown Shoe Narrows 2Q Loss On Lower Costs

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,757.91 +138.40 0.79%
S&P 500 2,077.42 +14.31 0.69%
NASDAQ 5,013.1230 +26.2560 0.53%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs