US: Brown Shoe Q3 profit hit by charges
One-off charges related to headquarters consolidation and IT initiatives more than halved third quarter profits at footwear retail group Brown Shoe Company.
The US company's sales for the three months ended 1 November fell 2.2% to US$631.7m.
Net profit was $10.4m, compared to $27m for the same period last year.
However, one-off charges affected both figures: Brown Shoe's adjusted third quarter profit for this year was $20.5m, down from $29.9m last year.
Famous Footwear reported a rise of 0.5% in third quarter sales to $362.7m, but same store sales fell 5%.
The company's Specialty Retail segment, mainly composed of its Naturalizer stores and the shoes.com website, saw sales rise 7.3% to $65.6m, with same store sales down 6.7%.
Wholesale net sales were down 4.8% to $203.4m. Brown Shoe chairman and CEO Ron Fromm said the company's results had been impacted by "the sudden and rapid decline in consumer spending" brought on by the global economic crisis.
He added: "As such, we have reduced our store expansion plans for the 2009 to 2011 period, indefinitely paused our headquarters redevelopment initiative, and will continue to monitor the pace of expenditures for our new ERP platform."
The company has lowered its capital spending for 2009-11 by an aggregate of $72m, he said.
Brown Shoe now expects full year sales of $2.27-2.29bn, with fourth quarter revenues of $515-538m. Full-year diluted earnings per share are projected at $0.09-0.18.
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