UPDATE: Brown Shoe Posts Stronger-Than-Expected Q2 Profit, Raises Forecast

Brown Shoe Company (NYSE: BWS) reported upbeat earnings for its fiscal second quarter and lifted its forecast for the year. Brown Shoe now projects full-year earnings of $1.50 to $1.60 per share, versus its earlier outlook of $1.47 to $1.57 per share.The St. Louis, Missouri-based company reported quarterly earnings of $18.1 million, or $0.41 per share, compared to $15.4 million, or $0.35 per share, in the year-ago period. Excluding certain items, the company earned $0.33 per share last year.Its sales climbed 2.3% to $635.9 million. However, analysts were estimating earnings of $0.35 per share on sales of $638 million.Sales at Famous Footwear rose 1.4% to $393.6 million, while same-store sales gained 1.6%. The wholesale unit's sales jumped 7.7% to $194.3 million in the quarter, while specialty retail sales dropped 9.5% to $48 million.Gross margin narrowed to 40.8% from 41.0%.Brown Shoe closed or relocated 16 stores and added 17 new stores in the quarter.At the end of the second quarter, inventory was $657.7 million, versus $615.9 million in the previous year.“Our second quarter results reflect the health of both our retail and wholesale businesses, as we continue to benefit from — and expand on — our portfolio realignment efforts,” said Diane Sullivan, CEO, president and chairman of Brown Shoe Company.Brown Shoe shares rose 1.37% to $31.80 in pre-market trading.