Brown Shoe’s Q4 profit rises; cautious in outlook

Clayton, Mo. -- Increased sales at its Famous Footwear division and the sale of its shoes.com online site, helped boost Brown Shoe Company’ profit in the fourth quarter.



The retailer reported net earnings of $16.2 million, which included adjustments related to the sale of Shoes.com, compared with $6.2 million in the year-ago period. Adjusted net earnings were $9 million.



Consolidated net sales in the quarter, ended Jan. 31, totaled $615.4 million, up 2.6% from year-ago period. Same-store sales increased 4%.



“Both of our business segments helped drive fourth quarter results, with Famous Footwear delivering strong same-store-sales growth of 4.0% while Brand Portfolio sales improved 5.4%,” said Diane Sullivan, CEO, president and chairman of Brown Shoe Company.



The retailer provided a cautious earnings outlook amid potential product delays due to the West Coast ports shut downs in February.



“We’re looking forward to following up a strong 2014 with additional growth in 2015, and we expect to deliver diluted EPS between $1.78 and $1.88 this year,” said Ken Hannah, CFO of Brown Shoe Company. “While we’re confident about our 2015 strategy, we are also cautious about the potential for product delays in the first half of the year, as the west coast port situation is gradually untangled. However, we believe the supply chain changes we implemented last fall should help mitigate most of the impact.”



For the full year, Brown Shoe's profit rose to $82.8 million, compared with $38.1 million in 2013. Net sales last year rose to $2.6 billion, up from $2.5 billion.