Collective Brands sees earnings growth, but comps suffer

TOPEKA, Kan. Collective Brands reported that second-quarter net earnings were $18.7 million, or 29 cents per diluted share, compared to $8.1 million, or 13 cents per diluted share, in the second quarter of 2008.

Net sales for the quarter were $836.3 million compared with $911.7 million for the same period last year. For the second quarter of 2009, comparable-store sales for Payless Domestic declined 6% and 2.7% for Stride Rite.

"While the retail environment remains challenging, I am pleased that our largest brands -- Payless, Stride Rite, Saucony, and Sperry Top-Sider -- continued to gain share at the retail level," said Matthew Rubel, Chairman, CEO and president of Collective Brands. "We remain focused on driving innovation for consumers while investing in key growth opportunities. During the second quarter, we also lowered operating costs, reduced inventories, and generated stronger cash flows."