Brown Shoe Company Q3 net sales up 2.6 percent

Brown Shoe Company reported its third quarter 2012

financial results, with net sales of 732.2 million dollars versus third quarter 2011 net sales of 713.8 million dollars. Results for both the third quarter of 2012 and 2011 included sales of 15.6 million dollars and 25.8 million dollars, respectively, from brands and businesses the company has exited. Excluding exited brands, net sales were up 4.2 percent year-over-year.

Net earnings were 24.3 million dollars, or 0.56 dollars per diluted share, in the third quarter of 2012 versus 33.7 million dollars, or 0.79 dollars per diluted share, in 2011. Gross profit margin for the third quarter of 2012 improved to 39 percent from 38.7 percent in 2011.

“With the third quarter, we delivered not only solid back-to-school results, but also overall strong quarterly same-store-sales growth of 6.8 percent at Famous Footwear,” said Diane Sullivan, president and chief executive officer of the St. Louis based company. “We also saw improvement in sales for both our Contemporary Fashion and Healthy Living brand portfolios, as we continued to deliver trend-right products that are must-haves for consumers.”

Famous Footwear reported record third quarter 2012 sales of 436.8 million dollars, a 4.9 percent year-over-year improvement, with good growth in boat shoes, running shoes and accessories. On a same-store-sales basis, the third quarter was up 6.8 percent over the prior year, with the back-to-school season up 5.5 percent. During the quarter, the company closed or relocated 11 stores and added 18 new stores, and average revenue per square foot improved 10.3 percent year-over-year.

Contemporary Fashion platform wholesale sales were up 5.2 percent in the third quarter, with the company’s Sam Edelman, Franco Sarto and Fergie brands all delivering strong performance. In the Healthy Living portfolio, wholesale sales were up 2.1 percent with contribution from LifeStride, Ryka and Dr. Scholl’s Shoes. Consolidated gross profit was up in the third quarter, while gross profit margin improved by approximately 30 basis points.