Brown Shoe Company, Inc. (NYSE: BWS) (www.brownshoe.com)
today reported financial results for the 13-week period ended July 31,
2010. Net sales for the second quarter increased 14.5 percent from the
second quarter of 2009 to $585.8 million. Net earnings (loss)
attributable to Brown Shoe Company, Inc. (hereafter "net earnings" or
"net loss") were $5.3 million, or $0.12 per diluted share, compared to a
net loss of $4.2 million, or $0.10 per diluted share, in the second
quarter of 2009. On an adjusted basis, excluding charges related to the
Company's information technology initiatives, net earnings were $6.5
million, or $0.15 per diluted share, compared to a net loss of $3.0
million, or $0.07 per diluted share in the second quarter of 2009. See
Schedule 4 attached for a reconciliation to net earnings (loss) on a
GAAP basis and the discussion of "Non-GAAP Financial Measures."
Ron Fromm, Brown Shoe's Chairman and Chief Executive Officer, said, "The
positive momentum for our retail and wholesale brands continued in the
second quarter and resulted in strong sales growth across our
multi-channel portfolio and a significant improvement in earnings during
the period. This performance reflects our growing engagement with our
consumers, built upon exceptional product and compelling merchandising
and marketing plans. We have seen tremendous growth from our Wholesale
division, with strong performances in the quarter from Naturalizer, Dr.
Scholl's, and our contemporary fashion brands. Additionally, Famous
Footwear drove a double-digit sales gain with a significantly reduced
promotional cadence in the quarter, resulting in solid year-over-year
gross profit rate improvement. As a result of the strong performance for
the first six months of the year, we are proud to have achieved our
short-term milestone of delivering adjusted earnings of $1.00 per
diluted share on a trailing 12-month basis in a much faster timeframe
than previously anticipated."
Fromm concluded, "We remain well-positioned to continue our market share
gains during the important Back-to-School season and are encouraged by
the early results we have seen. Historically, one out of 10 American
families shops at Famous Footwear during Back-to-School, and we expect
2010 to be no exception. We plan to drive increased market share gains
with a powerful assortment of brands and traffic-generating TV, print
and digital-marketing campaigns. Our portfolio of wholesale brands is
equally poised for growth, as evidenced by our strong backlog for fall
and holiday shipments. While the economic environment remains uncertain,
we expect our initiatives to fuel a strong year for Brown Shoe and lead
to increased value for our shareholders, as we continue to invest in our
core brands to support our long-term growth."
Consolidated Results for the Second Quarter of 2010:
-
Net sales for the second quarter were $585.8 million, up 14.5 percent
over $511.6 million in the year-earlier quarter;
-
Famous Footwear net sales improved 10.6 percent to $347.3 million.
The sales results were driven by an 11.8 percent same-store sales
increase, which reflects positive performances across all
categories, channels, and geographies in the quarter;
-
Net sales in the Wholesale division rose 25.8 percent to $178.6
million, driven by sales increases across all of its channels of
distribution; and
-
Net sales in the Specialty Retail division were $59.8 million,
reflecting a 6.8 percent same-store sales increase.
-
Gross profit rate climbed 90 basis points to 40.7 percent of net sales
compared with the year-ago level of 39.8 percent;
-
The key driver was a 320 basis point improvement in the Famous
Footwear division versus the same period last year, benefiting
from 85 percent fewer store BOGO days than in the year-ago period
and improved sell-through across all categories; and
-
This improvement was partially offset by a 230 basis point decline
in gross profit rate in the Wholesale division, attributable
primarily to an increased mix of sales to third parties as well as
shifts in brand and channel mix and increased freight costs.
-
Selling and administrative expenses increased to $224.5 million from
$206.6 million in the year-ago second quarter. As a percent of net
sales, selling and administrative expenses were 38.3 percent, a
decrease of 210 basis points, resulting from better expense leverage
from the Company's improved sales performance. The year-over-year
increase in expense was principally related to increased payroll
costs, a portion of which is variable with sales volume, a 44 percent
increase in marketing expense, and higher incentive compensation
expense due to improved performance. These increases were partially
offset by operating 64 fewer stores across the retail portfolio as
well as expense controls across the enterprise;
-
Net restructuring and other special charges related to the Company's
information technology initiatives were $1.9 million and $2.0 million
in the 2010 and 2009 second quarters, respectively;
-
Operating earnings improved to $12.1 million, contrasted with an
operating loss of $5.0 million in the second quarter of 2009;
-
Net interest expense was $4.8 million in the quarter;
-
The Company's effective tax rate in the second quarter of 2010 was
35.0 percent;
-
Net earnings were $5.3 million, or $0.12 per diluted share, versus a
net loss of $4.2 million, or $0.10 per diluted share, in the year-ago
quarter. Both quarters included after-tax charges of $1.3 million, or
$0.03 per diluted share, related to the Company's information
technology initiatives;
-
Inventory at quarter-end was $578.1 million, a 9.7 percent increase
from the year-ago level of $526.8 million. Average units on a
per-store basis at Famous Footwear increased 8.9 percent at
quarter-end versus the year-ago period, reflecting the strong sales
trend and outlook. Inventory at the Wholesale division increased 28.3
percent year-over-year, consistent with a strong, unshipped order
position; and
-
At quarter-end, the Company had $331.9 million in availability under
its revolving credit facility and had $30.7 million in cash and cash
equivalents. During the second quarter, the Company completed the
acquisition of Edelman Shoe, Inc. for $32.7 million in cash and $7.3
million in stock.
Outlook
Based on its current outlook, the Company expects the following:
-
Consolidated net sales for the full year of 2010 are expected to grow
in the low double-digit range, with third quarter net sales expected
to increase in the low-teens range;
-
Famous Footwear same-store sales are expected to grow in the high
single- to low double-digit range for both the full year of 2010 and
the third quarter. Famous Footwear plans to open 30 to 35 stores while
closing 50 stores in 2010;
-
Wholesale net sales are currently estimated to grow in the high-teens
range for the full year of 2010, with low- to mid-20's growth in the
third quarter;
-
Gross profit rate in the second half of 2010 is expected to be in the
range of 40.0 to 40.5 percent;
-
Selling and administrative expenses as a percent of net sales are
expected to be in the range of 37.5 to 38.0 percent for the full year
of 2010, which includes net restructuring and other special charges of
$7.0 million to $7.5 million for the Company's information technology
initiatives. Third quarter selling and administrative expenses as a
percent of net sales are expected to be in the range of 35.8 to 36.3
percent, which includes net restructuring and other special charges of
$2.0 to $2.5 million for information technology initiatives as well as
an increase in marketing and incentive compensation costs versus the
third quarter last year of approximately $20.0 million, or $0.29 per
diluted share on an after-tax basis;
-
Depreciation and amortization of capitalized software and intangible
assets are expected to total $50.0 million to $52.0 million for the
full year of 2010;
-
Net interest expense is expected to approximate $20.0 million to $21.0
million for the full year of 2010;
-
The Company expects an effective tax rate of 36.5 to 37.0 percent for
the full year of 2010; and
-
Purchases of property and equipment and capitalized software are
targeted in the range of $60.0 million to $63.0 million for the full
year of 2010.
Definitions
Consistent with guidance issued by the FASB on noncontrolling interests
in consolidated financial statements, all references in this press
release, outside of the condensed consolidated financial statements that
follow, unless otherwise noted, related to net earnings (loss)
attributable to Brown Shoe Company, Inc. and diluted earnings (loss) per
common share attributable to Brown Shoe Company, Inc. shareholders, are
presented as net earnings (loss) and earnings (loss) per diluted share,
respectively.
Non-GAAP Financial Measures
In this press release, the Company's financial results are provided both
in accordance with generally accepted accounting principles (GAAP) and
using certain non-GAAP financial measures. In particular, the Company
provides historic and estimated future net earnings (loss) and earnings
(loss) per diluted share adjusted to exclude certain charges and
recoveries, which are non-GAAP financial measures. These results are
included as a complement to results provided in accordance with GAAP
because management believes these non-GAAP financial measures help
identify underlying trends in the Company's business and provide useful
information to both management and investors by excluding certain items
that may not be indicative of the Company's core operating results.
These measures should not be considered a substitute for or superior to
GAAP results.
Conference Call
A conference call to discuss second quarter 2010 results will be held
today at 9:00 a.m. ET. While participation in the
question-and-answer session of the call will be limited to institutional
analysts and investors, retail brokers and individual investors are
invited to attend via a live web-cast at www.brownshoe.com/investor
or www.earnings.com
(at the website, type in the BWS ticker symbol to locate the broadcast).
Safe Harbor Statement Under the Private Securities Litigation Reform
Act of 1995:
This press release contains certain forward-looking statements and
expectations regarding the Company's future performance and the future
performance of its brands. Such statements are subject to various risks
and uncertainties that could cause actual results to differ materially.
These include (i) changing consumer demands, which may be influenced by
consumers' disposable income, which in turn can be influenced by general
economic conditions; (ii) the timing and uncertainty of activities and
costs related to the Company's information technology initiatives,
including software implementation and business transformation; (iii)
potential disruption to the Company's business and operations as it
implements its information technology initiatives; (iv) the Company's
ability to utilize its new information technology system to successfully
execute its strategies; (v) intense competition within the footwear
industry; (vi) rapidly changing fashion trends and purchasing patterns;
(vii) customer concentration and increased consolidation in the retail
industry; (viii) political and economic conditions or other threats to
continued and uninterrupted flow of inventory from China and Brazil,
where the Company relies heavily on third-party manufacturing facilities
for a significant amount of its inventory; (ix) the Company's ability to
attract and retain licensors and protect its intellectual property; (x)
the Company's ability to secure/exit leases on favorable terms; (xi) the
Company's ability to maintain relationships with current suppliers;
(xii) compliance with applicable laws and standards with respect to lead
content in paint and other product safety issues; (xiii) the Company's
ability to successfully execute its international growth strategy; (xiv)
the Company's ability to source product at a pace consistent with
increased demand for footwear; and (xv) the impact of rising prices in a
potentially inflationary global environment. The Company's reports to
the Securities and Exchange Commission contain detailed information
relating to such factors, including, without limitation, the information
under the caption "Risk Factors" in Item 1A of the Company's Annual
Report on Form 10-K for the year ended January 30, 2010, which
information is incorporated by reference herein and updated by the
Company's Quarterly Reports on Form 10-Q. The Company does not undertake
any obligation or plan to update these forward-looking statements, even
though its situation may change.
About Brown Shoe Company, Inc.
Brown Shoe is a $2.4 billion global footwear company. Brown Shoe's
Retail division operates Famous Footwear, a leading family branded
footwear destination with over 1,100 stores nationwide and e-commerce
site FamousFootwear.com,
approximately 270 specialty retail stores in the U.S., Canada, and China
primarily under the Naturalizer brand name, and footwear e-tailer shoes.com.
Through its wholesale divisions, Brown Shoe designs and markets leading
footwear brands including Naturalizer, Dr. Scholl's, Franco Sarto,
LifeStride, Etienne Aigner, Sam Edelman, Via Spiga, Vera Wang Lavender
and Buster Brown. Brown Shoe press releases are available on the
Company's website at www.brownshoe.com.
SCHEDULE 1
BROWN SHOE COMPANY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(Thousands, except per
share data) Thirteen Weeks Ended
--------------------
July 31, August 1,
2010 2009
--- ----
Net sales $585,756 $511,621
Cost of goods sold 347,286 307,981
------------------ ------- -------
Gross profit 238,470 203,640
------------ ------- -------
Selling and administrative
expenses 224,448 206,620
Restructuring and other
special charges, net 1,891 1,998
Operating earnings (loss) 12,131 (4,978)
------------------------- ------ ------
Interest expense (4,810) (4,914)
Interest income 49 145
--------------- --- ---
Earnings (loss) before
income taxes 7,370 (9,747)
---------------------- ----- ------
Income tax (provision)
benefit (2,582) 5,531
Net earnings (loss) $4,788 $(4,216)
------------------- ------ -------
Less: Net (loss) earnings
attributable to (473) 29
noncontrolling interests ---- ---
------------------------
Net earnings (loss)
attributable to Brown
Shoe Company, Inc. $5,261 $(4,245)
---------------------- ------ -------
Basic earnings (loss) per
common share $0.12 $(0.10)
attributable to Brown Shoe
Company, ----- ------
Inc. shareholders
-----------------
Diluted earnings (loss)
per common share $0.12 $(0.10)
attributable to Brown Shoe
Company, ----- ------
Inc. shareholders
-----------------
Basic number of shares 42,147 41,583
Diluted number of shares 42,463 41,583
(Thousands, except per
share data) Twenty-six Weeks Ended
----------------------
July 31, August 1,
2010 2009
---- ----
Net sales $1,183,474 $1,050,361
Cost of goods sold 697,444 638,557
------------------ ------- -------
Gross profit 486,030 411,804
------------ ------- -------
Selling and administrative
expenses 448,963 419,337
Restructuring and other
special charges, net 3,608 4,612
Operating earnings (loss) 33,459 (12,145)
------------------------- ------ -------
Interest expense (9,322) (10,163)
Interest income 67 288
--------------- --- ---
Earnings (loss) before
income taxes 24,204 (22,020)
---------------------- ------ -------
Income tax (provision)
benefit (8,881) 10,733
Net earnings (loss) $15,323 $(11,287)
------------------- ------- --------
Less: Net (loss) earnings
attributable to 16 561
noncontrolling interests --- ---
------------------------
Net earnings (loss)
attributable to Brown
Shoe Company, Inc. $15,307 $(11,848)
---------------------- ------- --------
Basic earnings (loss) per
common share $0.35 $(0.28)
attributable to Brown Shoe
Company, ----- ------
Inc. shareholders
-----------------
Diluted earnings (loss)
per common share $0.35 $(0.28)
attributable to Brown Shoe
Company, ----- ------
Inc. shareholders
-----------------
Basic number of shares 41,951 41,574
Diluted number of shares 42,267 41,574
SCHEDULE 2
BROWN SHOE COMPANY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Thousands) July 31, August 1, January 30,
----------- 2010 2009 2010
---- ---- ----
ASSETS
Cash and cash equivalents $30,724 $37,274 $125,833
Receivables 106,149 72,156 84,297
Inventories 578,085 526,808 456,682
Prepaid expenses and other current
assets 33,206 41,877 41,437
---------------------------------- ------ ------ ------
Total current assets 748,164 678,115 708,249
-------------------- ------- ------- -------
Other assets 118,884 110,540 113,114
Intangible assets, net 73,876 80,613 77,226
Property and equipment, net 136,207 155,550 141,561
--------------------------- ------- ------- -------
Total assets $1,077,131 $1,024,818 $1,040,150
------------ ---------- ---------- ----------
LIABILITIES AND EQUITY
Borrowings under revolving credit
agreement $35,500 $47,500 $94,500
Trade accounts payable 294,845 233,791 177,700
Other accrued expenses 139,675 133,652 141,863
Total current liabilities 470,020 414,943 414,063
------------------------- ------- ------- -------
Long-term debt 150,000 150,000 150,000
Deferred rent 38,011 42,049 38,869
Other liabilities 27,555 29,570 25,991
Total Brown Shoe Company, Inc.
shareholders' equity 391,071 379,583 402,171
Noncontrolling interests 474 8,673 9,056
------------------------ --- ----- -----
Total equity 391,545 388,256 411,227
------------ ------- ------- -------
Total liabilities and equity $1,077,131 $1,024,818 $1,040,150
---------------------------- ---------- ---------- ----------
SCHEDULE 3
BROWN SHOE COMPANY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Twenty-six Weeks Ended
----------------------
July 31, August 1,
(Thousands) 2010 2009
OPERATING ACTIVITIES:
Net earnings (loss) $15,323 $(11,287)
Adjustments to reconcile net
earnings (loss) to net cash
provided by
operating activities:
Depreciation 16,028 18,204
Amortization of capitalized
software 5,010 3,993
Amortization of intangibles 3,350 3,387
Amortization of debt issuance
costs 1,098 1,098
Share-based compensation expense 2,781 1,944
Tax deficiency related to share-
based plans 142 89
Loss on disposal of facilities
and equipment 617 293
Impairment charges for facilities
and equipment 1,684 2,094
Deferred rent (858) 335
Provision for doubtful accounts 80 477
Foreign currency transaction
gains (11) (61)
Changes in operating assets and
liabilities:
Receivables (21,923) 11,643
Inventories (121,298) (59,120)
Prepaid expenses and other
current and noncurrent assets 8,923 2,507
Trade accounts payable 117,041 81,073
Accrued expenses and other
liabilities (714) (4,391)
Other, net (284) (2,567)
---------- ---- ------
Net cash provided by operating
activities 26,989 49,711
------------------------------ ------ ------
INVESTING ACTIVITIES:
Purchases of property and
equipment (12,844) (17,911)
Capitalized software (11,871) (10,916)
------------------------- ------- -------
Net cash used for investing
activities (24,715) (28,827)
--------------------------- ------- -------
FINANCING ACTIVITIES:
Borrowings under revolving credit
agreement 435,500 394,900
Repayments under revolving credit
agreement (494,500) (459,900)
Proceeds from stock options
exercised 561 -
Tax deficiency related to share-
based plans (142) (89)
Acquisition of noncontrolling
interests (Edelman Shoe, Inc.) (32,692) -
Dividends paid (6,114) (6,006)
------------------------------- ------ ------
Net cash used for financing
activities (97,387) (71,095)
--------------------------- ------- -------
Effect of exchange rate changes
on cash 4 585
------------------------------- --- ---
Decrease in cash and cash
equivalents (95,109) (49,626)
Cash and cash equivalents at
beginning of period 125,833 86,900
---------------------------- ------- ------
Cash and cash equivalents at end
of period $30,724 $37,274
-------------------------------- ------- -------
SCHEDULE 4
BROWN SHOE COMPANY, INC.
Reconciliation of Operating Earnings (Loss), Net Earnings (Loss) and
Diluted
Earnings (Loss) Per Share (GAAP Basis) to Adjusted Operating Earnings
(Loss),
Net Earnings (Loss) and Diluted Earnings (Loss) Per Share (Non-GAAP Basis)
2nd Quarter 2010
----------------
(Thousands, except per share
data) Operating Net Diluted
---------------------------- Earnings Earnings Earnings
Attributable Per
-------- to Share
Brown
Shoe ------
Company,
Inc.
---------
GAAP earnings (loss) $12,131 $5,261 $0.12
Charges / Other Items:
----------------------
IT initiatives 1,891 1,263 0.03
Total charges /other items 1,891 1,263 0.03
-------------------------- ----- ----- ----
Adjusted earnings (loss) $14,022 $6,524 $0.15
------------------------ ------- ------ -----
Six Months 2010
---------------
(Thousands, except per share
data) Operating Net Diluted
---------------------------- Earnings Earnings Earnings
Attributable Per
-------- to Share
Brown
Shoe ------
Company,
Inc.
--------
GAAP earnings (loss) $33,459 $15,307 $0.35
Charges / Other Items:
----------------------
IT initiatives 3,608 2,447 0.06
Total charges /other items 3,608 2,447 0.06
-------------------------- ----- ----- ----
Adjusted earnings (loss) $37,067 $17,754 $0.41
------------------------ ------- ------- -----
2nd Quarter 2009
----------------
(Thousands, except per share
data) Operating Net (Loss) Diluted
---------------------------- (Loss) Earnings -------
Attributable
Earnings to (Loss)
-------- Brown Shoe Earnings
Company, Per
Inc. Share
--------- ------
GAAP earnings (loss) ($4,978) ($4,245) ($0.10)
Charges / Other Items:
----------------------
IT initiatives 1,998 1,282 0.03
Total charges /other items 1,998 1,282 0.03
-------------------------- ----- ----- ----
Adjusted earnings (loss) ($2,980) ($2,963) ($0.07)
------------------------ ------- ------- ------
Six Months 2009
---------------
(Thousands, except per share
data) Operating Net (Loss) Diluted
---------------------------- (Loss) Earnings (Loss)
Attributable
Earnings to Earnings
Per
-------- Brown Shoe Share
Company,
Inc. ------
---------
GAAP earnings (loss) ($12,145) ($11,848) ($0.28)
Charges / Other Items:
----------------------
IT initiatives 4,612 2,965 0.07
Total charges /other items 4,612 2,965 0.07
-------------------------- ----- ----- ----
Adjusted earnings (loss) ($7,533) ($8,883) ($0.21)
------------------------ ------- ------- ------
SCHEDULE 5
BROWN SHOE COMPANY, INC.
OPERATING RESULTS BY SEGMENT
Wholesale
Famous Footwear Operations
--------------- ----------
($ millions) 2nd 2nd 2nd 2nd
------------ Quarter Quarter Quarter Quarter
2010 2009 2010 2009
---- ---- ---- ----
Net Sales $347.3 $314.1 $178.6 $142.0
Gross Profit $159.6 $134.3 $54.1 $46.3
Gross Profit Rate 46.0% 42.8% 30.3% 32.6%
Operating Earnings
(Loss) $15.8 $(0.8) $9.0 $7.9
Operating Earnings
(Loss) % 4.5% (0.3)% 5.1% 5.5%
Same-store Sales % 11.8% (6.7)% - -
Number of Stores 1,128 1,167 - -
Wholesale
Famous Footwear Operations
--------------- ----------
($ millions) Six Six Six Six
------------ Months Months Months Months
2010 2009 2010 2009
---- ---- ---- ----
Net Sales $709.5 $631.7 $353.4 $310.9
Gross Profit $323.8 $270.8 $110.7 $95.7
Gross Profit Rate 45.6% 42.9% 31.3% 30.8%
Operating Earnings
(Loss) $43.9 $2.2 $17.7 $13.8
Operating Earnings
(Loss) % 6.2% 0.3% 5.0% 4.4%
Same-store Sales % 13.6% (5.9)% - -
Specialty Retail
----------------
($ millions) 2nd 2nd
------------ Quarter Quarter
2010 2009
---- ----
Net Sales $59.8 $55.5
Gross Profit $24.8 $23.0
Gross Profit Rate 41.4% 41.6%
Operating Earnings
(Loss) $(2.7) $(4.3)
Operating Earnings
(Loss) % (4.6)% (7.8)%
Same-store Sales % 6.8% (3.8)%
Number of Stores 264 289
Specialty Retail
----------------
($ millions) Six Six
------------ Months Months
2010 2009
---- ----
Net Sales $120.6 $107.8
Gross Profit $51.5 $45.3
Gross Profit Rate 42.7% 42.0%
Operating Earnings
(Loss) $(5.7) $(10.5)
Operating Earnings
(Loss) % (4.7)% (9.8)%
Same-store Sales % 11.3% (4.9)%
SCHEDULE 6
BROWN SHOE COMPANY, INC.
Trailing Twelve-Months Results
Twelve Months Twelve Months
(Thousands, except per share data) Ended Ended
July 31, 2010 August 1, 2009
------------- --------------
Net sales $2,375,081 $2,203,013
Gross profit 977,365 854,081
Gross profit % 41.2% 38.8%
Operating earnings (loss) 77,127 (204,153)
Operating earnings (loss) % 3.3% (9.3%)
Net earnings (loss) attributable to
Brown Shoe Company, Inc. 36,655 (154,498)
Adjusted net earnings attributable to
Brown Shoe Company, Inc. 43,597 119
Diluted earnings (loss) per common share
attributable to Brown Shoe Company, $0.84 ($3.72)
Inc. shareholders
Adjusted diluted earnings per common
share attributable to Brown Shoe $1.00 $0.00
Company, Inc. shareholders ----- -----
--------------------------
BROWN SHOE COMPANY, INC.
Reconciliation of Trailing Twelve-Months Net Earnings (Loss) and Diluted
Earnings (Loss) Per Share (GAAP Basis) to Trailing Twelve-Months
Adjusted Net
Earnings and Diluted Earnings Per Share (Non-GAAP Basis)
Twelve Months Ended
July 31, 2010
-------------------
Net
(Thousands) Earnings Diluted
(Loss)
----------- Attributable Earnings
to Brown
Shoe (Loss)
Company, Per
Inc. Share
--------- ------
GAAP earnings (loss) $36,655 $0.84
Charges / Other Items:
----------------------
Impairment of goodwill and
intangible assets - -
Expense and capital
containment initiatives - -
Headquarters consolidation (1,139) (0.03)
IT initiatives 5,256 0.12
Organizational changes 2,825 0.07
Total charges /other items 6,942 0.16
-------------------------- ----- ----
Adjusted earnings $43,597 $1.00
----------------- ------- -----
Twelve Months Ended
August 1, 2009
-------------------
Net (Loss)
(Thousands) Earnings Diluted
----------- Attributable (Loss)
to Brown
Shoe Earnings
Company, Per
Inc. Share
--------- ------
GAAP earnings (loss) ($154,498) ($3.72)
Charges / Other Items:
----------------------
Impairment of goodwill and
intangible assets 119,203 2.87
Expense and capital
containment initiatives 19,091 0.46
Headquarters consolidation 11,253 0.27
IT initiatives 5,070 0.12
Organizational changes - -
Total charges /other items 154,617 3.72
-------------------------- ------- ----
Adjusted earnings $119 $0.00
----------------- ---- -----
