US: Brown Shoe Co lifts outlook on Q2 profit
- Net earnings US$15.4m versus a $2.5m loss last year
- Sales rose 10.1% to $621.7m from $564.9m
- Gross margin improved 70 basis points to 41%
Footwear firm Brown Shoe Company has lifted its full year earnings guidance after it returned to profit during the second quarter, helped by higher sales and margins.
The company, which operates 1,300 stores, today (27 August) said sales at Famous Footwear increased 10.8% to $388.2m and same-store-sales rose 6.8%.
Wholesale revenue grew 12.4% to $180.5m, with sales at Healthy Living and Contemporary Fashion up 14.4% and 10.2% respectively.
President and CEO Diane Sullivan said the sales increase was helped by a shift in sales to the second quarter from the third quarter.
"Both retail and wholesale contributed to this quarter's success, with Famous delivering record second quarter sales and operating profit and both of our wholesale platforms - Healthy Living and Contemporary Fashion - reporting double-digit increases in sales," Sullivan noted.
The company now expects full year adjusted earnings per share to $1.27-1.32, up from its earlier guidance of $1.22-1.29.
"For the back half of the year, we are maintaining a realistic but cautious stance, as we continue to monitor the macro retail environment," CFO Russ Hammer said.
Brown Shoe Company president and chief executive officer Diane Sullivan has added the role of chairman to her title following the departure of Ron Fromm....
Brown Shoe Company today (26 November) raised its full-year earnings guidance after reporting a 12.4% jump in third-quarter profit....
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