Collective Brands Drops On Q3 Revenue Miss

Shares of Collective Brands PSS are trading lower in the after-hours following the release of the company's Q3 earnings results. Currently, shares are lower by 5.77%, trading at $12.91; they ended the regular session lower by 0.65%, at $13.70. Collective Brands reported Q3 EPS of $0.61 on revenues of $894.4 million; the street was looking for $0.51 per share on revenues of $907.17million. Quarterly revenues increased 1.4% year over year. "Our operating results in the third quarter reflect both the challenges we are facing as well as opportunities we see for marked improvement at Collective Brands," said Michael J. Massey, Chief Executive Officer of Collective Brands, Inc. "While August was weak in our Payless business, we took pricing actions that improved sales sequentially during the quarter. At the same time, we continued to implement the previously announced aggressive actions to transform the Payless business model for the longer term including increasing our mix of Incredible Value Every Day product, introducing additional tailored assortments across more than half of our domestic store base, and targeted discounts for our most loyal customers. As we implement these actions, we have seen signs that confirm that we are on the right track." The company expects PLG wholesale sales to grow more than 20% year over year. Collective Brands, Inc. is a producer of compelling lifestyle, fashion and performance brands for footwear and related accessories to consumers worldwide. Collective Brands operate as hybrid business model that includes retail, wholesale, licensing, digital commerce, and franchising businesses.