US: Charges send Collective Brands to Q3 loss
- Q3 net loss of US$114.3m, versus profit of $47.6m
- Net sales up 1.4% to $894.4m
- Adjusted profit of $37.1m, charges of $151.4m
Charges totalling more than $150m sent footwear firm Collective Brands to a third quarter loss as revenues inched up slightly over the period.
Growth at PLG Wholesale more than offset lower sales at Payless US, although same-store sales slipped back 3.7% in the three months to 29 October.
Payless Domestic net sales were down 5.1% and same-store sales fell 4.5%, but international revenues edged up 1.2%, despite a 1.4% same-store sales decrease.
Collective’s Performance and Lifestyle Group (PLG), which includes the Sperry Top-Sider, Keds and Saucony brands, posted a 27.3% surge in wholesale revenues, while its retail sales were up 0.7%, with a same-store sales decrease of 1.1%.
“Our operating results in the third quarter reflect both the challenges we are facing as well as opportunities we see for marked improvement at Collective Brands,” said Michael Massey, Collective Brands CEO.
“While August was weak in our Payless business, we took pricing actions that improved sales sequentially during the quarter.
“At the same time, we continued to implement the previously announced aggressive actions to transform the Payless business model for the longer term.”
Footwear firm Collective Brands has spent the last five years trying to find a stable footing following the company's formation following Payless ShoeSource's acquisition of Stride Rite in 2007. Here ...
Top stories on just-style this week included a report on the surge in Sri Lanka's apparel exports, India ending its ban on cotton exports, and the sale of Collective Brands to a consortium made up of ...
A consortium made up of Wolverine Worldwide and private equity firms Blum Capital Partners and Golden Gate Capital has emerged as the winner in the race to buy footwear retailer Collective Brands Inc,...
Collective Brands has allegedly chosen a group made up of Wolverine World Wide and Golden Gate Capital as the leading contender to buy the company. ...
Women's fashion brand Vena Cava has signed a multi-year licensing and design agreement with LF USA, a subsidiary of Hong Kong based consumer goods sourcing giant Li & Fung....
Shares in footwear company Collective Brands shot up yesterday following reports that South Korean company E-Land Group is planning to make a bid for the company. ...
Footwear business Collective Brands slid to a fourth quarter net loss of US$41.6m, impacted by one-off charges related to store closures and other expenses....
Sneaker brand Keds has teamed up with retailer Madewell to launch a limited-edition capsule collection....
- Low labour cost countries linked to highest risks
- Why should brands care about China cotton?
- China cotton: implications and opportunities
- COMMENT: Skills or new technology?
- UK reshoring hub hit by sweatshop claims
- South Africa to grow grass for recyclable textiles
- 30% of Adidas cotton from sustainable sources
- Activewear driving US apparel spend
- Benetton to embark on living wage roadmap
- Sri Lanka and Bangladesh FTA talks underway
- Myanmar's Garment Sector - Opportunities & Challenges in 2015
- Outdoor performance apparel: peaks, valleys, and green fields
- Global market review of swimwear - forecasts to 2019
- Management briefing: Outlook 2015: Apparel industry issues in the year ahead
- Apparel Retail: Top 5 Emerging Markets Industry Guide