Brown Shoe Company net sale rise 2.3 percent in FY14

Brown Shoe Company reported net sales of 615.4 million dollars up 2.6 percent for the fourth quarter and net sales of 2,571.7 million dollars, up 2.3 percent for the full year. Adjusted net earnings of 9 million dollars, or 0.20 dollars per diluted share, were up 45.5 percent in the fourth quarter. Gross margin was flat year-over-year, at 40.2 percent, while operating earnings of 12.7 million dollars were up 24.7 percent.

For the full year, the company reported net earnings of 82.8 million dollars, or 1.89 dollars per diluted share. Adjusted net earnings for 2014 were 75.6 million dollars, or 1.72 dollars per diluted share, and were up 23 percent. Gross margin was flat year-over-year, at 40.4 percent, while operating earnings of 125.9 million dollars were up 27.7 percent.

“Both of our business segments helped drive fourth quarter results, with Famous Footwear delivering strong same-store-sales growth of 4 percent while Brand Portfolio sales improved 5.4 percent. Both segments also delivered good improvement in adjusted operating margin for the quarter, with Famous Footwear up 90 basis points and Brand Portfolio adjusted operating margin up 160 basis points,” said Diane Sullivan, CEO, President and Chairman of Brown Shoe Company, adding, “This is in addition to record adjusted operating earnings for 2014 and good year-over-year improvement in adjusted operating margin - up 80 basis points to 5 percent.”

Famous Footwear fourth quarter sales of 369.4 million dollars were up 0.8 percent year-over-year, including Shoes.com through December 12, 2014. Excluding Shoes.com, fourth quarter sales were up 3.6 percent. During the quarter, 13 stores were closed and 10 new stores were added. Brand Portfolio sales of 246 million dollars were up 5.4 percent in the fourth quarter. Performance in the quarter was driven by a 22.8 percent improvement in Contemporary Fashion sales, offset by a 4.7 percent decline in Healthy Living sales.

Consolidated gross profit of 247.4 million dollars was up 2.5 percent in the fourth quarter. Operating margins improved approximately 90 basis points year-over-year to 2.6 percent.

Famous Footwear reported full year sales of 1,589.3 million dollars, roughly flat year-over-year, including Shoes.com. Excluding Shoes.com, sales were up 1.1 percent, while same-store-sales were up 1.5 percent. During the year, 56 stores were closed and 50 new stores were added. Brand Portfolio sales of 982.5 million dollars were up 6.3 percent and Contemporary Fashion sales growth was 20 percent was offset by a slight decline in Healthy Living sales of 1.6 percent.

For 2014, consolidated gross profit of 1,040.1 million dollars was up 2.5 percent, while gross margin of 40.4 percent was flat year-over-year. For the year, adjusted operating margins improved by 80 basis points to 5 percent.

“We’re looking forward to following up a strong 2014 with additional growth in 2015, and we expect to deliver diluted EPS between 1.78 dollars and 1.88 dollars this year,” said Ken Hannah, Chief Financial Officer of Brown Shoe Company.