Stride Rite deal not to affect '08 earnings

TOPEKA, Kan. Collective Brands announced at its first investor conference since its launch that the Stride Rite acquisition, excluding the impact of purchase accounting, is expected to be accretive to earnings per share in 2008 as the Stride Rite unit's earnings contribution is expected to exceed the incremental interest expense. Due to the impact of purchase accounting, the Stride Rite acquisition is not expected to be earnings per share accretive in 2008 on a GAAP basis.

The company, which was formed when Payless ShoeSource acquired Stride Rite, also announced at the conference that it expects the 2006 to 2009 compound annual growth rate in operating profit, excluding purchasing accounting, is expected to be in the mid-to-upper teens.  Including purchase accounting, the 2006 to 2009 compound annual growth rate in operating profit is expected to be in the low-teens on a GAAP basis.

Collective Brands president and ceo, Matthew Rubel, was confident in the company's future.

"Collective Brands will be more than simply the sum strength of our business units' individual core competencies, expertise and heritage; we intend to leverage this exceptional foundation to become the preeminent, consumer-centric, global footwear, accessories and lifestyle brand company," said Rubel.