Collective Brands 3Q comps up, earnings down

TOPEKA, Kan. Collective Brands reported that third-quarter 2009 net earnings were $36.9 million, or 57 cents per diluted share, compared with $47.5 million, or 74 cents per diluted share, in the third quarter of 2008.

Collective Brands' third-quarter 2009 net sales were $867 million, up 0.5% versus last year and up 2.9% versus last year on an adjusted basis. The company's third-quarter 2009 comparable-store sales increased 3.1%.

"Our strong third quarter operating results demonstrate the success of our strategy in the midst of a difficult economy," said Matthew Rubel, chairman, CEO and president of Collective Brands. "Sales increased, operating margins improved, and we generated substantially greater free cash flow. At Payless, we had strong children's results that produced a successful back-to-school season, and we had a strong boot performance as well. Saucony and Sperry Top-Sider also showed continued strength. Across Collective Brands, we delivered on our customer promise with innovative and fresh product, outstanding customer service, effective marketing, and efficient merchandise flow, all of which led to strong results."