Brown Shoe swings to loss on exit costs
21.05.12
Swung to fiscal fourth-quarter loss amid charges related to business exits and acquisition related costs. The footwear company also unveiled plans to close a Missouri distribution center and more of its Famous Footwear locations.
For the year, the company projected per-share earnings of 78 cents to 92 cents on revenue of $2.55 billion to $2.58 billion, well below recent estimates of analysts polled by Thomson Reuters recently for $1.06 and $15.28 billion, respectively.
Brown Shoe, which operates more than 1,300 stores under brands such as Famous Footwear and Naturalizer, has posted mostly weaker results in recent quarters. The fiscal third-quarter was an exception with a big boost from the sale of a unit, though sales were essentially flat.
The company in November planned to exit several business including its children's wholesale line and some women's specialty and private brands.
President and Chief Executive Diane Sullivan on Wednesday said that the company has closed a China factory, developed plans to close a Missouri distribution center and worked to identify an additional 15 Famous Footwear locations to be closed this year.
Source: MarketWatch