Market Overview

Brown Shoe Company Announces Time for Fourth Quarter 2014 Earnings Call and Changes to Reportable Segments

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ST. LOUIS--(BUSINESS WIRE)--

Brown Shoe Company (NYSE: BWS) (brownshoe.com) today announced it plans to release its fourth quarter 2014 financial results before market open on Wednesday, March 11. Company executives will host a financial analyst call at 9:00 a.m. ET that day, to discuss fourth quarter earnings and to provide a general business update.

The dial-in number for financial analysts in North America is (877) 217-9089, or (706) 679-1723 for international analysts, and the conference ID is 94046375. To participate, please dial in a few minutes before the scheduled time. Employees, the media and the public are invited to listen to the call at investor.brownshoe.com/news/events.

A replay of the call will be available through Wednesday, March 25, 2015, by dialing (855) 859-2056 in North America, or (404) 537-3406 internationally, and using the conference ID 94046375. A webcast replay will also be archived for a limited period at investor.brownshoe.com/news/events/archive.

The company also announced it is realigning its reportable segments, following the sale of Shoes.com in December of 2014. The new segments align with the way the executive team evaluates performance and allocates resources, and are also consistent with the company's omni-channel approach to managing its branded footwear business across all distribution channels.

"Our new reportable segments are designed to align our brands and businesses with our internal operations and to provide increased financial visibility," said Ken Hannah, chief financial officer of Brown Shoe Company. "We expect this new reporting structure will improve clarity for investors and allow for easier financial modeling and peer comparisons."

The reportable segments will include the following:

  • Famous Footwear will include Famous Footwear retail operations, on a historical and continuing basis, and Shoes.com through December 12, 2014.
  • Brand Portfolio will include Healthy Living and Contemporary Fashion wholesale brands and any related retail operations.

Quarterly historical segment results for 2013 and 2014, are included in this release as schedules. The company's fourth quarter and full year 2014 results will reflect the new reportable segments.

About Brown Shoe Company

Brown Shoe Company is a $2.5 billion, global, footwear company whose shoes are worn by people of all ages, from all walks of life. Our products are available virtually everywhere - in the over 1,200 Famous Footwear and Naturalizer retail stores we operate, in hundreds of major department and specialty stores, on 13 branded ecommerce sites, and on many additional third-party retail websites. Through our broad range of products, we serve three key market segments. Famous Footwear and Famous.com serve as our Family brands and provide one-stop-shopping destinations for high quality, affordable styles for a family's every occasion. Active people who want comfort, style and performance, can look to our Healthy Living brands - Naturalizer, Dr. Scholl's, LifeStride and Ryka. Our Contemporary Fashion brands - Sam Edelman, Franco Sarto, Vince, Via Spiga, Fergie Footwear and Carlos Santana - keep fashionistas in step with the latest trends. At Brown Shoe Company, we inspire people to feel good and live better... feet first!

 

BROWN SHOE COMPANY, INC.

SUMMARY FINANCIAL RESULTS BY SEGMENT

(Unaudited)

 
SUMMARY FINANCIAL RESULTS
 
      Thirteen Weeks Ended
Famous Footwear     Brand Portfolio     Other     Consolidated
(Thousands) May 3, 2014     May 4, 2013     May 3, 2014     May 4, 2013     May 3, 2014     May 4, 2013     May 3, 2014     May 4, 2013
Net Sales $ 366,726     $ 367,904     $ 224,436     $ 220,752     $     $     $ 591,162     $ 588,656
Gross Profit $ 165,362 $ 163,420 $ 76,979 $ 76,596 $ $ $ 242,341 $ 240,016
Adjusted Gross Profit $ 165,362 $ 163,420 $ 76,979 $ 76,596 $ $ $ 242,341 $ 240,016
Gross Profit Rate 45.1 % 44.4 % 34.3 % 34.7 % % % 41.0 % 40.8 %
Adjusted Gross Profit Rate 45.1 % 44.4 % 34.3 % 34.7 % % % 41.0 % 40.8 %
Operating Earnings (Loss) $ 26,730 $ 28,654 $ 11,203 $ 2,166 $ (9,207 ) $ (9,862 ) $ 28,726 $ 20,958
Adjusted Operating Earnings (Loss) $ 26,730 $ 28,654 $ 11,203 $ 7,329 $ (9,207 ) $ (9,846 ) $ 28,726 $ 26,137
Operating Earnings % 7.3 % 7.8 % 5.0 % 1.0 % % % 4.9 % 3.6 %
Adjusted Operating Earnings % 7.3 % 7.8 % 5.0 % 3.3 % % % 4.9 % 4.4 %

Same-store Sales % (on a 13-week basis)

1.3 % 1.1 % (5.6 )% (0.3 )% % % % %
Number of Stores 1,034 1,054 172 215 1,206 1,269
 
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)
 
Thirteen Weeks Ended
Famous Footwear     Brand Portfolio     Other     Consolidated
(Thousands) May 3, 2014     May 4, 2013     May 3, 2014     May 4, 2013     May 3, 2014     May 4, 2013     May 3, 2014     May 4, 2013
Gross Profit $ 165,362 $ 163,420 $ 76,979 $ 76,596 $ $ $ 242,341 $ 240,016

Charges/Other Items:

Portfolio realignment
Business exits and cost reductions                                            
Total charges/other items                                            
Adjusted Gross Profit $ 165,362       $ 163,420       $ 76,979       $ 76,596       $       $       $ 242,341       $ 240,016  
 
Operating Earnings (Loss) $ 26,730 $ 28,654 $ 11,203 $ 2,166 $ (9,207 ) $ (9,862 ) $ 28,726 $ 20,958

Charges/Other Items:

Portfolio realignment
Non-cash impairment charges 4,660 4,660
Business exits and cost reductions                   503             16             519  
Total charges/other items                   5,163             16             5,179  
Adjusted Operating Earnings (Loss) $ 26,730       $ 28,654       $ 11,203       $ 7,329       $ (9,207 )     $ (9,846 )     $ 28,726       $ 26,137  
 
 
BROWN SHOE COMPANY, INC.
SUMMARY FINANCIAL RESULTS BY SEGMENT
(Unaudited)
 
SUMMARY FINANCIAL RESULTS

 

      Thirteen Weeks Ended
Famous Footwear     Brand Portfolio     Other     Consolidated
(Thousands) August 2, 2014     August 3, 2013     August 2, 2014     August 3, 2013     August 2, 2014     August 3, 2013     August 2, 2014     August 3, 2013
Net Sales $ 404,069     $ 400,572     $ 231,808     $ 221,134     $     $     $ 635,877     $ 621,706
Gross Profit $ 180,974 $ 180,948 $ 78,668 $ 73,678 $ $ $ 259,642 $ 254,626
Adjusted Gross Profit $ 180,974 $ 180,948 $ 78,668 $ 73,678 $ $ $ 259,642 $ 254,626
Gross Profit Rate 44.8 % 45.2 % 33.9 % 33.3 % % % 40.8 % 41.0 %
Adjusted Gross Profit Rate 44.8 % 45.2 % 33.9 % 33.3 % % % 40.8 % 41.0 %
Operating Earnings (Loss) $ 25,524 $ 28,335 $ 17,497 $ 7,004 $ (11,719 ) $ (12,527 ) $ 31,302 $ 22,812
Adjusted Operating Earnings (Loss) $ 25,524 $ 28,335 $ 17,497 $ 7,747 $ (11,719 ) $ (12,527 ) $ 31,302 $ 23,555
Operating Earnings % 6.3 % 7.1 % 7.5 % 3.2 % % % 4.9 % 3.7 %
Adjusted Operating Earnings % 6.3 % 7.1 % 7.5 % 3.5 % % % 4.9 % 3.8 %
Same-store Sales % (on a 13-week basis) 1.6 % 6.8 % 2.3 % 4.8 % % % % %
Number of Stores 1,035 1,059 170 215 1,205 1,274
 
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)
 
Thirteen Weeks Ended
Famous Footwear Brand Portfolio Other Consolidated
(Thousands) August 2, 2014     August 3, 2013     August 2, 2014     August 3, 2013     August 2, 2014     August 3, 2013     August 2, 2014     August 3, 2013
Gross Profit $ 180,974 $ 180,948 $ 78,668 $ 73,678 $ $ $ 259,642 $ 254,626

Charges/Other Items:

Portfolio realignment
Business exits and cost reductions                                            
Total charges/other items                                            
Adjusted Gross Profit $ 180,974       $ 180,948       $ 78,668       $ 73,678       $       $       $ 259,642       $ 254,626  
 
Operating Earnings (Loss) $ 25,524 $ 28,335 $ 17,497 $ 7,004 $ (11,719 ) $ (12,527 ) $ 31,302 $ 22,812

Charges/Other Items:

Portfolio realignment
Business exits and cost reductions                   743                         743  
Total charges/other items                   743                         743  
Adjusted Operating Earnings (Loss) $ 25,524       $ 28,335       $ 17,497       $ 7,747       $ (11,719 )     $ (12,527 )     $ 31,302       $ 23,555  
 
 
BROWN SHOE COMPANY, INC.
SUMMARY FINANCIAL RESULTS BY SEGMENT
(Unaudited)
                                 
SUMMARY FINANCIAL RESULTS
 
Thirteen Weeks Ended
Famous Footwear     Brand Portfolio     Other     Consolidated
(Thousands)

November 1,
2014

   

November 2,
2013

   

November 1,
2014

   

November 2,
2013

   

November 1,
2014

   

November 2,
2013

   

November 1,
2014

   

November 2,
2013

Net Sales $ 449,085 $ 453,589 $ 280,192 $ 249,199 $ $ $ 729,277 $ 702,788
Gross Profit $ 193,783 $ 191,764 $ 96,947 $ 86,476 $ $ $ 290,730 $ 278,240
Adjusted Gross Profit $ 193,783 $ 191,764 $ 96,947 $ 86,476 $ $ $ 290,730 $ 278,240
Gross Profit Rate 43.2 % 42.3 % 34.6 % 34.7 % % % 39.9 % 39.6 %
Adjusted Gross Profit Rate 43.2 % 42.3 % 34.6 % 34.7 % % % 39.9 % 39.6 %
Operating Earnings (Loss) $ 37,405 $ 35,807 $ 27,642 $ 18,243 $ (11,834 ) $ (9,382 ) $ 53,213 $ 44,668
Adjusted Operating Earnings (Loss) $ 37,405 $ 35,807 $ 27,642 $ 18,243 $ (11,834 ) $ (9,382 ) $ 53,213 $ 44,668
Operating Earnings % 8.3 % 7.9 % 9.9 % 7.3 % % % 7.3 % 6.4 %
Adjusted Operating Earnings % 8.3 % 7.9 % 9.9 % 7.3 % % % 7.3 % 6.4 %
Same-store Sales % (on a 13-week basis) (0.2 )% 4.9 % (6.9 )% 0.6 % % % % %
Number of Stores 1,041 1,048 172 185 1,213 1,233
 
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)
 
Thirteen Weeks Ended
Famous Footwear     Brand Portfolio     Other     Consolidated
(Thousands)

November 1,
2014

   

November 2,
2013

   

November 1,
2014

   

November 2,
2013

   

November 1,
2014

   

November 2,
2013

   

November 1,
2014

   

November 2,
2013

Gross Profit $ 193,783 $ 191,764 $ 96,947 $ 86,476 $ $ $ 290,730 $ 278,240

Charges/Other Items:

Portfolio realignment
Business exits and cost reductions                                            
Total charges/other items                                            
Adjusted Gross Profit $ 193,783       $ 191,764       $ 96,947       $ 86,476       $       $       $ 290,730       $ 278,240  
 
Operating Earnings (Loss) $ 37,405 $ 35,807 $ 27,642 $ 18,243 $ (11,834 ) $ (9,382 ) $ 53,213 $ 44,668

Charges/Other Items:

Portfolio realignment
Business exits and cost reductions                                            
Total charges/other items                                            
Adjusted Operating Earnings (Loss) $ 37,405       $ 35,807       $ 27,642       $ 18,243       $ (11,834 )     $ (9,382 )     $ 53,213       $ 44,668  
 
 
BROWN SHOE COMPANY, INC.
SUMMARY FINANCIAL RESULTS BY SEGMENT
(Unaudited)
 
SUMMARY FINANCIAL RESULTS
 
      Thirteen Weeks Ended
Famous Footwear     Brand Portfolio     Other     Consolidated
(Thousands)

January 31,
2015*

   

February 1,
2014

   

January 31,
2015*

   

February 1,
2014

   

January 31,
2015*

   

February 1,
2014

   

January 31,
2015*

   

February 1,
2014

Net Sales     $ 366,487         $ 233,475         $         $ 599,962
Gross Profit $ 165,047 $ 76,360 $ $ 241,407
Adjusted Gross Profit $ 165,047 $ 76,360 $ $ 241,407
Gross Profit Rate 45.0 % 32.7 % % 40.2 %
Adjusted Gross Profit Rate 45.0 % 32.7 % % 40.2 %
Operating Earnings (Loss) $ 12,587 $ 12,493 $ (14,902 ) $ 10,178
Adjusted Operating Earnings (Loss) $ 12,587 $ 12,493 $ (14,902 ) $ 10,178
Operating Earnings % 3.4 % 5.4 % % 1.7 %
Adjusted Operating Earnings % 3.4 % 5.4 % % 1.7 %
Same-store Sales % (on a 13-week basis) (1.8 )% 1.3 % % %
Number of Stores 1,044 179 1,223
 
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)
 
Thirteen Weeks Ended
Famous Footwear     Brand Portfolio     Other     Consolidated
(Thousands)

January 31,
2015*

   

February 1,
2014

   

January 31,
2015*

   

February 1,
2014

   

January 31,
2015*

   

February 1,
2014

   

January 31,
2015*

   

February 1,
2014

Gross Profit $ 165,047 $ 76,360 $ $ 241,407

Charges/Other Items:

Portfolio realignment
Business exits and cost reductions                                            
Total charges/other items                                            
Adjusted Gross Profit       $ 165,047             $ 76,360             $             $ 241,407  
 
Operating Earnings (Loss) $ 12,587 $ 12,493 $ (14,902 ) $ 10,178

Charges/Other Items:

Portfolio realignment
Business exits and cost reductions                                            
Total charges/other items                                            
Adjusted Operating Earnings (Loss)       $ 12,587             $ 12,493             $ (14,902 )           $ 10,178  
 

* Summary financial results and the reconciliation of adjusted results (non-GAAP) for the thirteen weeks ended January 31, 2015 will be released on March 11, 2015.

Brown Shoe Company
Peggy Reilly Tharp, 314-854-4134
ptharp@brownshoe.com

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