Footwear retailer Brown Shoe Co says continued problems within its wholesale operations mean third-quarter sales will be well below expectations.

Although same-store sales at its Famous Footwear chain increased 4.7 per cent during September, Brown Shoe forecast quarterly earnings of between 90 cents and $1 per share, compared to the $1.14 previously predicted by analysts, and last year's income of $1.13 per share.

The company also forecast a whole-year profit of $2.55 to $2.65 per share, compared to last year's income of $2.77 per share.