US: Brown Shoe slides to Q2 loss of US$4.2m
- Q2 net sales down 10.1% to US$511.6m
- Net loss of $4.2m
- Predicts FY profitability
Footwear operator Brown Shoe Company slipped to a second quarter net loss of US$4.2m after sales slumped 10.1% to $511.6m in the three months to 1 August.
The loss compared to a profit of $2.2m in the same period last year, but was in line with internal forecasts, the company said.
Famous Footwear sales dropped 3.7% to $314.1m, with comparable store sales down 6.7%.
Wholesale revenues slumped 21.1% to $142m, while speciality retail declined 12% to $55.5m.
Brown Shoe chairman and CEO Ron Fromm said the company was well-positioned to win market share during the key back-to-school trading period.
"Our wholesale sales continued to be impacted by lower shipments, as our retail partners adjusted their inventory levels to the environment, as well as by the ongoing shift in certain retail channels to source private brands directly," he added.
Brown Shoe also said that its cost-saving programme was on track to deliver savings of $40m-plus during 2009.
The company predicted full-year sales of $2.18-2.2bn, forecasting a return to profitability in the third quarter, fourth quarter and fiscal year as a whole.
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