• Q3 profit 21.2% to $33.1m
  • Sales rise 3.8% to $729.3m
  • FY EPS guidance raised to $1.65-1.69

Footwear business Brown Shoe has lifted its full-year earnings guidance, after higher sales and margins resulted in a double-digit increase in third-quarter net profit.

Net earnings reached US$33.1m for the 13 weeks to 1 November, compared to $27.3m in the same period of the prior year.

Net sales increased 3.8% to $729.3m from $702.8m last year. The company's wholesale business saw sales grow 18.2%, while Famous Footwear and Specialty Retail reported a respective 1% and 11.4% decline in sales.

Gross margin improved 30 basis points to 39.9% from 39.6% a year ago.

As a result, the company now expects full-year earnings per share to range from $1.65 to $1.69, up from its earlier guidance of $1.50-$1.60.

"While we expect to end the year on a positive note, we remain aware of the promotional potential at retail for the holiday season and alert to possible shifts in consumer sentiment," said CFO Russ Hammer.