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.”
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