Brown Shoe Company net sales up 1.4 percent in 2013

REPORT_ Brown Shoe Company has reported that its full year 2013 net sales were 2,513.1 million dollars, up 1.4 percent compared to 2,477.8 million dollars in 2012. Net earnings for 2013 were 38.1 million dollars, or 0.88 dollars per diluted share, versus 27.5 million dollars, or 0.64 dollars per diluted

share, in 2012. For the fourth quarter, net sales were 600 million dollars down 3 percent versus fourth quarter 2012.

Fourth quarter 2013 net earnings stood at 6.2 million dollars, or 0.14 dollars per diluted share, were slightly ahead of company expectations. Earnings for 2013 included portfolio realignment costs of 30.7 million dollars. On an adjusted basis, 2013 net earnings of 61.5 million dollars, or 1.41 dollars per diluted share, were up 26.5 percent compared to 48.6 million dollars, or 1.13 dollars per diluted share, in 2012.

Gross

profit margin for the fourth quarter of 2013 improved to 40.2 percent from 40 percent in the fourth quarter of 2012. For the full year, it improved to 40.4 percent from 39.9 percent in 2012.

“Brown Shoe Company delivered a successful fourth quarter and 2013. We reported year-over-year operating earnings growth of 32.4 percent, while delivering a 2.9 percent increase in 2013 Famous Footwear same-store-sales. Our wholesale brands continued to make progress, growing sales 13.5 percent in the fourth quarter and 5.3 percent in 2013,” said Diane Sullivan, CEO, President and Chairman of Brown Shoe Company.

Famous Footwear fourth quarter 2013 sales were down 8.6 percent year-over-year, with same-store-sales down 1.8 percent. During the quarter, 13 stores were closed or relocated and nine new stores were added. Wholesale sales were up 13.5 percent in the fourth quarter. Consolidated gross profit was down 2.4 percent in the fourth quarter.

Famous Footwear reported full year 2013 sales with a 0.9 percent year-over-year improvement, while annual operating earnings were up 13.8 percent. For 2013, same-store-sales were up 2.9 percent over 2012. During the year, 62 stores were closed or relocated and 51 new stores were added.

“At Brown Shoe Company, we executed on our strategy in 2013 and improved our operating performance, delivering steady improvement toward our long term financial goals by driving sustainable profitability,” said Russ Hammer, Chief Financial Officer of Brown Shoe Company. “For 2014, we expect to continue to deliver toward our long term goals, while balancing our realistic outlook in terms of the economy, the consumer and the weather -- especially this early in the year. As a result, we believe we will deliver 2014 earnings per share of 1.45 dollars to 1.55 dollars, or a 3 percent to 10 percent increase over 2013,” Hammer added.