ST. LOUIS--(BUSINESS WIRE)--Brown Shoe Company (NYSE:BWS, brownshoe.com) today announced it has sold
Shoes.com to SHOEme, and the transaction closed immediately. The company
expects the sale to result in a gain in the fourth quarter of 2014,
which will be considered a non-GAAP adjustment.
“Since 2000, Shoes.com has helped us greatly advance our ecommerce
efforts at a pace ahead of the industry and has also served as the
platform for many of our branded wholesale ecommerce sites, including
Naturalizer.com, SamEdelman.com and ViaSpiga.com, among others," said
Diane Sullivan, CEO, president and chairman of Brown Shoe Company.
“While Shoes.com has been a beneficial part of our company, we believe
now is the right time to focus our attention on Famous.com and our
branded wholesale ecommerce sites, as we continue to expand and invest
in more strategic omni-channel, online and mobile efforts. With over
1,000 brick-and-mortar locations, an established online presence and
over 1 million mobile app downloads, we believe Famous Footwear will be
the leading omni-channel destination for the footwear industry.”
“Shoes.com has a strong history with top-tier brands and a commitment to
providing an unparalleled shoe-shopping experience,” said Roger Hardy,
CEO of OnlineShoes.com and SHOEme.ca. “Shoes.com’s experience in the
industry will be invaluable to all of our brands, as SHOEme continues
its rapid expansion.”
Brown Shoe Company does not expect the sale of Shoes.com to have a
negative impact on operations going forward. Additional details
regarding the sale of Shoes.com will be available in the company’s 10-K
filing. Financo Inc. served as advisor to Brown Shoe Company for this
transaction.
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
performance of its brands. Such statements are subject to various risks
and uncertainties that could cause actual results to differ materially.
These risks include (i) changing consumer demands, which may be
influenced by consumers' disposable income, which in turn can be
influenced by general economic conditions; (ii) intense competition
within the footwear industry; (iii) rapidly changing fashion trends and
purchasing patterns; (iv) customer concentration and increased
consolidation in the retail industry; (v) political and economic
conditions or other threats to the continued and uninterrupted flow of
inventory from China, where Brown Shoe Company relies heavily on
manufacturing facilities for a significant amount of their inventory;
(vi) the ability to recruit and retain senior management and other key
associates; (vii) the ability to attract, retain and maintain good
relationships with licensors and protect intellectual property rights;
(viii) the ability to secure/exit leases on favorable terms; (ix) the
ability to maintain relationships with current suppliers; (x) compliance
with applicable laws and standards with respect to lead content in paint
and other product safety issues; (xi) the ability to source product at a
pace consistent with increased demand for footwear; and (xii) 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 February 1,
2014, 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
Brown Shoe Company is a $2.5 billion, global, footwear company whose
shoes are worn by people of all ages, from all walks of life. Our
products are available virtually everywhere - in the over 1,200 Famous
Footwear and Naturalizer retail stores we operate, in hundreds of major
department and specialty stores, on 14 branded ecommerce sites, and on
many additional third-party retail websites. Through our broad range of
products, we serve three key market segments. Our Family brands - Famous
Footwear and Famous.com - are one-stop-shopping destinations for high
quality, affordable styles for a family’s every occasion. Active people
who want comfort, style and performance, can look to our Healthy Living
brands - Naturalizer, Dr. Scholl's, LifeStride and Ryka. Our
Contemporary Fashion brands - Sam Edelman, Franco Sarto, Vince, Via
Spiga, Fergie Footwear and Carlos Santana - keep fashionistas in step
with the latest trends. At Brown Shoe Company, we inspire people to feel
good and live better... feet first!
About SHOEme
SHOEme is the parent company of online footwear retailers
OnlineShoes.com and SHOEme.ca. Established in 1996, OnlineShoes.com is
the nation's first online shoe retailer. With a history that began
decades ago in a family-owned corner shoe store, the company is
committed to delivering exceptional value and service, both in the
United States and internationally. OnlineShoes.com offers the latest
high-quality footwear for men, women and kids with over 300 name brands,
as well as a wide selection of bags and accessories. SHOEme.ca is one of
Canada's fastest growing ecommerce companies. Its mission is to redefine
the shopping experience by directly connecting consumers with premium
clothing and footwear brands. It applies technology and fashion
expertise to enable consumers to experience the best that these brands
have to offer. For more information, visit OnlineShoes.com or SHOEme.ca.
