US: Collective Brands Q1 net income rises 26%
- Net income rose 25.7% to $34m
- Sales increased 4.9% to $912.1m
- 8.1% increase in comparable-store sales
The company said profit reached US$34m over the quarter ended 28 April. Sales rose 4.9% to $912.1m - buoyed by an 8.1% increase in comparable-store sales and 8.3% sales growth in the Performance + Lifestyle Group wholesale segment.
"Our first quarter results show that the new Payless strategy is working domestically and the turnaround in that business has begun," said Collective Brands CEO Michael Massey.
"At Payless we are employing a strategy that emphasises re-connecting with our core budget-conscious consumer with more relevant price points and styles. We are now implementing these strategic changes across Payless internationally and seeing some positive results there as well.
"Similarly, the double-digit same store sales growth at Stride Rite retail stores demonstrates the progress we are making at the Stride Rite Children's Group, which helped offset a slightly more challenging wholesale environment at the Performance + Lifestyle Group."
At the beginning of May Collective Brands announced a US$2bn deal that would see the company sold to a consortium made up of Wolverine Worldwide and private equity firms Blum Capital Partners and Golden Gate Capital.
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Footwear maker Wolverine Worldwide has lowered its full-year earnings target after posting a 19% drop in third-quarter net profit amid challenging economic trading conditions in Europe....
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Wolverine Worldwide, Golden Gate Capital and Blum Capital have completed the acquisition of US footwear company Collective Brands. ...
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