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Brown Shoe Company Reports Second Quarter 2014 Results

Earnings per diluted share improves 17.1% year-over-year

Company raises annual EPS guidance range to $1.50 to $1.60

ST. LOUIS--(BUSINESS WIRE)--Brown Shoe Company (NYSE: BWS)(brownshoe.com) today reported second quarter 2014 financial results, with net sales of $635.9 million up 2.3% versus second quarter 2013 net sales of $621.7 million. Second quarter 2014 net earnings of $18.1 million, or $0.41 per diluted share, were up 17.6% compared to net earnings of $15.4 million, or $0.35 per diluted share, in the second quarter of 2013. Gross margin for the second quarter of 2014 was 40.8% compared to 41.0% in the prior year.

“To account for our better-than-expected second quarter performance, we are raising our annual guidance range to $1.50 to $1.60.”

“Our second quarter results reflect the health of both our retail and wholesale businesses, as we continue to benefit from — and expand on — our portfolio realignment efforts,” said Diane Sullivan, CEO, president and chairman of Brown Shoe Company. “At Famous Footwear, our focus on delivering a seamless omni-channel experience to our consumers helped kick off our Back-to-School selling season. At our wholesale brands, our trend-right merchandise is resonating with both consumers and retailers.”

 
US$M, except per share (unaudited)       13 Weeks

2Q'14

    13 Weeks

2Q’13

   

2Q

Change

               
Consolidated net sales       $635.9     $621.7     2.3%
Famous Footwear       393.6     388.2     1.4%
Wholesale Operations       194.3     180.5     7.7%
Specialty Retail       48.0     53.0     (9.5%)
Gross profit       259.6     254.6     2.0%
Margin       40.8%     41.0%     (20 bps)
SG&A       228.3     231.1     (1.2%)
% of net sales       35.9%     37.2%     (130 bps)
Restructuring and other special charges, net       --     0.7     (100%)
Operating earnings       31.3     22.8     37.2%
Margin       4.9%     3.7%     120 bps
Net interest expense       5.0     5.1     (1.8%)
Earnings before income taxes from continuing operations       26.3     17.7     48.5%
Tax rate       31.4%     23.1%     830 bps
Net earnings from discontinued operations       --     1.7     (100%)
Net earnings       $18.1     $15.4     17.6%
Per diluted share       $0.41     $0.35     17.1%
 

Second Quarter Highlights

Famous Footwear second quarter 2014 sales of $393.6 million were up 1.4% year-over-year, with same-store-sales up 1.6%. Performance in the quarter was driven by canvas, as casual styles continued to resonate with consumers. During the quarter, 16 stores were closed or relocated and 17 new stores were added.

Wholesale sales of $194.3 million were up 7.7% in the second quarter. For the Healthy Living platform, wholesale sales of $106.6 million were up 1.7% in the second quarter, while Contemporary Fashion wholesale sales of $87.3 million were up 17.1%.

Consolidated gross profit of $259.6 million was up 2.0% in the second quarter, while gross margin decreased by 20 basis points to 40.8%. SG&A for the second quarter was $228.3 million, or 35.9% of net sales, which was down approximately 130 basis points versus the prior year. For the quarter, operating margins improved approximately 120 basis points year-over-year to 4.9%.

Inventory at the end of the second quarter was $657.7 million, up 6.8% from $615.9 million in the prior year. Wholesale inventory was up 22.9%, while Famous Footwear inventory was up 2.5%. At quarter-end, Brown Shoe Company had no borrowings against its revolving credit facility and $46.9 million of cash and equivalents. The company’s debt-to-capital ratio improved to 28.1% from 34.2% in the second quarter of 2013.

Financial Review and 2014 Outlook

“Despite a continued, industry-wide decline in traffic patterns and an overall tough retail environment, we were able to deliver against expectations in the second quarter,” said Russ Hammer, chief financial officer of Brown Shoe Company. “To account for our better-than-expected second quarter performance, we are raising our annual guidance range to $1.50 to $1.60.”

 
Guidance Metric                   FY’14
Consolidated net sales                   $2.58 to $2.60 billion
Famous Footwear same-store sales Up low-single digits
Specialty Retail net sales Down mid-single digits
Wholesale Operations net sales Up mid- to high-single digits
Gross margin Up approximately 10 bps
SG&A $920 to $930 million
Net interest expense $20 to $21 million
Effective tax rate 32% to 34%
Earnings per diluted share $1.50 to $1.60
Depreciation and amortization $51 to $54 million
Capital expenditures                  

$55 to $60 million

 

Investor Conference Call

Brown Shoe Company will webcast an investor conference call at 9:00 a.m. ET today, August 27, 2014. The webcast and slides will be available at investor.brownshoe.com/news/events. A live conference call will be available at (877) 217-9089 for analysts in North America or (706) 679-1723 for international analysts by using the conference ID 86307819. A replay will be available for a limited period at investor.brownshoe.com/news/events/archive.

Investors may also access the replay by dialing (855) 859-2056 in North America or (404) 537-3406 internationally and using the conference ID 86307819 through Wednesday, Sept. 3, 2014.

Definitions: All references in this press release, outside of the condensed consolidated financial statements that follow, unless otherwise noted, related to net earnings attributable to Brown Shoe Company, Inc. and diluted earnings per common share attributable to Brown Shoe Company, Inc. shareholders, are presented as net earnings and earnings 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 gross profit, operating earnings, net earnings and earnings per diluted share adjusted to exclude certain gains, 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. Reconciliations to the applicable GAAP financial measures have been included in the attached schedules.

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) rapidly changing fashion trends and purchasing patterns; (iii) intense competition within the footwear industry; (iv) the ability to accurately forecast sales and manage inventory levels; (v) political and economic conditions or other threats to the continued and uninterrupted flow of inventory from China and other countries, where the company relies heavily on third-party manufacturing facilities for a significant amount of its inventory; (vi) cybersecurity threats or other major disruption to the company’s information technology systems; (vii) customer concentration and increased consolidation in the retail industry; (viii) a disruption in the company’s distribution centers; (ix) foreign currency fluctuations; (x) additional duties, quotas, tariffs or other trade restrictions;(xi) compliance with applicable laws and standards with respect to labor, trade and product safety issues; (xii) the ability to recruit and retain senior management and other key associates; (xiii) the ability to attract, retain and maintain good relationships with licensors and protect intellectual property rights; (xiv) the ability to secure/exit leases on favorable terms; and (xv) the ability to maintain relationships with current suppliers. 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, Famous.com and shoes.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!

 
 
 
 
 
SCHEDULE 1
 
BROWN SHOE COMPANY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
               
(Unaudited) (Unaudited)
13 Weeks Ended 26 Weeks Ended
August 2, August 3, August 2, August 3,
(Thousands, except per share data) 2014 2013 2014 2013
 
Net sales $ 635,877 $ 621,706 $ 1,227,039 $ 1,210,362
Cost of goods sold   376,235     367,080     725,056     715,720  
Gross profit   259,642     254,626     501,983     494,642  
Selling and administrative expenses 228,340 231,071 441,955 444,950
Restructuring and other special charges, net 743 1,262
Impairment of assets held for sale               4,660  
Operating earnings   31,302     22,812     60,028     43,770  
Interest expense (5,125 ) (5,192 ) (10,431 ) (10,913 )
Interest income   109     82     185     150  
Earnings before income taxes from continuing operations   26,286     17,702     49,782     33,007  
Income tax provision   (8,247 )   (4,081 )   (16,267 )   (12,027 )
Net earnings from continuing operations   18,039     13,621     33,515     20,980  
 
Discontinued operations:
Earnings (loss) from discontinued operations, net of tax benefit of $0, $2,588, $0 and $6,171 620 (5,017 )
Disposition/impairment of discontinued operations, net of $0 tax       1,042         (11,512 )
Net earnings (loss) from discontinued operations       1,662         (16,529 )
 
Net earnings   18,039     15,283     33,515     4,451  
 
Net (loss) earnings attributable to noncontrolling interests   (25 )   (74 )   22     (144 )
 
Net earnings attributable to Brown Shoe Company, Inc. $ 18,064   $ 15,357   $ 33,493   $ 4,595  
 
Basic earnings (loss) per common share:
From continuing operations $ 0.41 $ 0.32 $ 0.77 $ 0.51
From discontinued operations       0.04         (0.40 )

Basic earnings per common share attributable to Brown Shoe Company, Inc. shareholders

$ 0.41   $ 0.36   $ 0.77   $ 0.11  
 
Diluted earnings (loss) per common share:
From continuing operations $ 0.41 $ 0.31 $ 0.76 $ 0.50
From discontinued operations       0.04         (0.40 )

Diluted earnings per common share attributable to Brown Shoe Company, Inc. shareholders

$ 0.41   $ 0.35   $ 0.76   $ 0.10  
 
Basic number of shares 42,074 41,348 41,980 41,209
Diluted number of shares   42,276     41,664     42,198     41,476  
 
 
 
 
 
 
SCHEDULE 2
   
BROWN SHOE COMPANY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
       
(Unaudited)  
August 2, August 3, February 1,
(Thousands) 2014 2013 2014
ASSETS
 
Cash and cash equivalents $ 46,876 $ 53,137 $ 82,546
Receivables, net 125,484 120,054 129,217
Inventories, net 657,656 615,916 547,531
Prepaid expenses and other current assets 39,167 51,845 33,136
Current assets - discontinued operations     1,661   119
Total current assets   869,183   842,613   792,549
 
Property and equipment, net 148,358 147,955 143,560
Goodwill and intangible assets, net 136,762 76,688 73,673
Other assets   134,779   113,764   139,621
Total assets $ 1,289,082 $ 1,181,020 $ 1,149,403
 
LIABILITIES AND EQUITY
 
Borrowings under revolving credit agreement $ $ 23,000 $ 7,000
Trade accounts payable 341,694 309,806 226,602
Other accrued expenses 159,152 143,735 152,545
Current liabilities - discontinued operations     3,536   708
Total current liabilities   500,846   480,077   386,855
 
Long-term debt 199,104 198,917 199,010
Deferred rent 36,560 36,196 38,593
Other liabilities   43,320   39,429   47,583
Total other liabilities   278,984   274,542   285,186
 
Total Brown Shoe Company, Inc. shareholders’ equity 508,582 425,718 476,699
Noncontrolling interests   670   683   663
Total equity   509,252   426,401   477,362
Total liabilities and equity $ 1,289,082 $ 1,181,020 $ 1,149,403
 
 
 
 
 
 
SCHEDULE 3
       
BROWN SHOE COMPANY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
(Unaudited)
26 Weeks Ended
August 2, August 3,
(Thousands) 2014 2013
OPERATING ACTIVITIES:
Net earnings $ 33,515 $ 4,451
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization 25,530 27,336
Amortization of debt issuance costs and debt discount 1,257 1,256
Share-based compensation expense 2,961 2,935
Tax benefit related to share-based plans (2,097 ) (2,798 )
Loss on disposal of facilities and equipment 772 191
Impairment charges for facilities and equipment 725 959
Impairment of assets held for sale 4,660
Disposition/impairment of discontinued operations 11,512
Net loss on sale of subsidiaries 576
Deferred rent (2,033 ) 2,485
Provision for doubtful accounts 48 331
Changes in operating assets and liabilities, net of dispositions:
Receivables 3,655 (8,605 )
Inventories (109,619 ) (112,625 )
Prepaid expenses and other current and noncurrent assets (2,845 ) (6,372 )
Trade accounts payable 114,874 96,932
Accrued expenses and other liabilities 1,696 11,729
Other, net   (1,948 )   536  
Net cash provided by operating activities   66,491     35,489  
 
INVESTING ACTIVITIES:
Capital expenditures (26,225 ) (30,435 )
Acquisition of trademarks (65,065 )
Net proceeds from sale of subsidiaries       69,347  
Net cash (used for) provided by investing activities   (91,290 )   38,912  
 
FINANCING ACTIVITIES:
Borrowings under revolving credit agreement 456,000 685,000
Repayments under revolving credit agreement (463,000 ) (767,000 )
Dividends paid (6,110 ) (6,048 )
Issuance of common stock under share-based plans, net (523 ) (2,780 )
Tax benefit related to share-based plans   2,097     2,798  
Net cash used for financing activities   (11,536 )   (88,030 )
Effect of exchange rate changes on cash and cash equivalents   665     (1,457 )
Decrease in cash and cash equivalents (35,670 ) (15,086 )
Cash and cash equivalents at beginning of period   82,546     68,223  
 
Cash and cash equivalents at end of period $ 46,876   $ 53,137  
 
 
 
 
 
 
SCHEDULE 4
             
BROWN SHOE COMPANY, INC.
RECONCILIATION OF NET EARNINGS AND DILUTED EARNINGS PER SHARE (GAAP BASIS) TO ADJUSTED NET EARNINGS AND ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP BASIS)
 
(Unaudited) (Unaudited)
13 Weeks Ended August 2, 2014 13 Weeks Ended August 3, 2013
(Thousands, except per share data)

Pre-Tax Impact

of Charges/Other

Items

Net Earnings

Attributable to

Brown Shoe

Company, Inc.

Diluted Earnings

Per Share

Pre-Tax Impact

of Charges/Other

Items

Net Earnings

(Loss)

Attributable to

Brown Shoe

Company, Inc.

Diluted Earnings

(Loss) Per Share

 
GAAP earnings $ 18,064 $ 0.41 $ 15,357 $ 0.35
 

Charges/Other Items - Continuing Operations:

Portfolio realignment
Business exits and cost reductions $ $ 743   486   0.01  
Total Continuing Operations 743 486 0.01
 

Charges/Other Items - Discontinued Operations:

Portfolio realignment
Business exits and cost reductions 2,124 (616 ) (0.01 )
Non-cash impairments/dispositions         (1,042 )   (1,042 )   (0.02 )
Total Discontinued Operations         1,082     (1,658 )   (0.03 )
Total charges/other items $     $ 1,825     (1,172 )   (0.02 )
 
Adjusted earnings $ 18,064 $ 0.41 $ 14,185   $ 0.33  
 
 
 
26 Weeks Ended August 2, 2014 26 Weeks Ended August 3, 2013
(Thousands, except per share data)

Pre-Tax Impact

of Charges/Other

Items

Net Earnings

Attributable to

Brown Shoe

Company, Inc.

Diluted Earnings

Per Share

Pre-Tax Impact

of Charges/Other

Items

Net Earnings

Attributable to

Brown Shoe

Company, Inc.

Diluted Earnings

Per Share

 
GAAP earnings $ 33,493 $ 0.76 $ 4,595 $ 0.10
 

Charges/Other Items - Continuing Operations:

Portfolio realignment
Business exits and cost reductions $ $ 1,262 803 0.02
Non-cash impairments/dispositions         4,660     4,660     0.11  
Total Continuing Operations 5,922 5,463 0.13
 

Charges/Other Items - Discontinued Operations:

Portfolio realignment
Business exits and cost reductions 13,233 6,414 0.13
Non-cash impairments/dispositions         11,512     11,512     0.28  
Total Discontinued Operations         24,745     17,926     0.41  
Total charges/other items $     $ 30,667     23,389     0.54  
 
Adjusted earnings $ 33,493 $ 0.76 $ 27,984   $ 0.64  
 
 
 
 
 
 
 
SCHEDULE 5
                                       
BROWN SHOE COMPANY, INC.
SUMMARY FINANCIAL RESULTS BY SEGMENT
(Unaudited)
 
SUMMARY FINANCIAL RESULTS
 
Famous Footwear Wholesale Operations Specialty Retail Other Consolidated
13 Weeks Ended 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended
August 2, August 3, August 2, August 3, August 2, August 3, August 2, August 3, August 2, August 3,
(Thousands) 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
 
Net Sales $ 393,631 $ 388,259 $ 194,269 $ 180,440 $ 47,977 $ 53,007 $ $ $ 635,877 $ 621,706
 
Gross Profit $ 177,650 $ 177,074 $ 63,281 $ 55,863 $ 18,711 $ 21,689 $ $ $ 259,642 $ 254,626
Adjusted Gross Profit $ 177,650 $ 177,074 $ 63,281 $ 55,863 $ 18,711 $ 21,689 $ $ $ 259,642 $ 254,626
 
Gross Profit Rate 45.1 % 45.6 % 32.6 % 31.0 % 39.0 % 40.9 % 40.8 % 41.0 %
Adjusted Gross Profit Rate 45.1 % 45.6 % 32.6 % 31.0 % 39.0 % 40.9 % 40.8 % 41.0 %
 
Operating Earnings (Loss) $ 26,558 $ 28,969 $ 19,249 $ 8,196 $ (2,786 ) $ (1,826 ) $ (11,719 ) $ (12,527 ) $ 31,302 $ 22,812
Adjusted Operating Earnings (Loss) $ 26,558 $ 28,969 $ 19,249 $ 8,939 $ (2,786 ) $ (1,826 ) $ (11,719 ) $ (12,527 ) $ 31,302 $ 23,555
 
Operating Earnings (Loss) % 6.7 % 7.5 % 9.9 % 4.5 % (5.8 %) (3.4 %) 4.9 % 3.7 %
Adjusted Operating Earnings (Loss) % 6.7 % 7.5 % 9.9 % 5.0 % (5.8 %) (3.4 %) 4.9 % 3.8 %
 
Same-store Sales % (on a 13-week basis) 1.6 % 6.8 % 2.3 % 4.8 %
 
Number of Stores 1,035 1,059 170 215 1,205 1,274
                                                       
 
 
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)
 
Famous Footwear Wholesale Operations Specialty Retail Other Consolidated
13 Weeks Ended 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended
August 2, August 3, August 2, August 3, August 2, August 3, August 2, August 3, August 2, August 3,
(Thousands) 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
 
Gross Profit $ 177,650 $ 177,074 $ 63,281 $ 55,863 $ 18,711 $ 21,689 $ $ $ 259,642 $ 254,626
 

Charges/Other Items:

Portfolio realignment
Business exits and cost reductions                                        
Total charges/other items                                        
 
Adjusted Gross Profit $ 177,650   $ 177,074   $ 63,281   $ 55,863   $ 18,711   $ 21,689   $   $   $ 259,642   $ 254,626  
 
Operating Earnings (Loss) $ 26,558 $ 28,969 $ 19,249 $ 8,196 $ (2,786 ) $ (1,826 ) $ (11,719 ) $ (12,527 ) $ 31,302 $ 22,812
 

Charges/Other Items:

Portfolio realignment
Business exits and cost reductions               743                         743  
Total charges/other items               743                         743  
 
Adjusted Operating Earnings (Loss) $ 26,558   $ 28,969   $ 19,249   $ 8,939   $ (2,786 ) $ (1,826 ) $ (11,719 ) $ (12,527 ) $ 31,302   $ 23,555  
 
 
 
 
 
 
SCHEDULE 5 - CONTINUED
                                       
BROWN SHOE COMPANY, INC.
SUMMARY FINANCIAL RESULTS BY SEGMENT
(Unaudited)
 
SUMMARY FINANCIAL RESULTS
 
Famous Footwear Wholesale Operations Specialty Retail Other Consolidated
26 Weeks Ended 26 Weeks Ended 26 Weeks Ended 26 Weeks Ended 26 Weeks Ended
August 2, August 3, August 2, August 3, August 2, August 3, August 2, August 3, August 2, August 3,
(Thousands) 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
 
Net Sales $ 748,254 $ 740,538 $ 386,054 $ 362,065 $ 92,731 $ 107,759 $ $ $ 1,227,039 $ 1,210,362
 
Gross Profit $ 339,428 $ 335,735 $ 125,300 $ 113,682 $ 37,255 $ 45,225 $ $ $ 501,983 $ 494,642
Adjusted Gross Profit $ 339,428 $ 335,735 $ 125,300 $ 113,682 $ 37,255 $ 45,225 $ $ $ 501,983 $ 494,642
 
Gross Profit Rate 45.4 % 45.3 % 32.5 % 31.4 % 40.2 % 42.0 % 40.9 % 40.9 %
Adjusted Gross Profit Rate 45.4 % 45.3 % 32.5 % 31.4 % 40.2 % 42.0 % 40.9 % 40.9 %
 
Operating Earnings (Loss) $ 54,429 $ 58,011 $ 33,003 $ 11,303 $ (6,478 ) $ (3,155 ) $ (20,926 ) $ (22,389 ) $ 60,028 $ 43,770
Adjusted Operating Earnings (Loss) $ 54,429 $ 58,011 $ 33,003 $ 17,209 $ (6,478 ) $ (3,155 ) $ (20,926 ) $ (22,373 ) $ 60,028 $ 49,692
 
Operating Earnings (Loss) % 7.3 % 7.8 % 8.5 % 3.1 % (7.0 %) (2.9 %) 4.9 % 3.6 %
Adjusted Operating Earnings (Loss) % 7.3 % 7.8 % 8.5 % 4.8 % (7.0 %) (2.9 %) 4.9 % 4.1 %
 
Same-store Sales % (on a 26-week basis) 1.5 % 4.0 % (1.5 %) 2.3 %
 
Number of Stores 1,035 1,059 170 215 1,205 1,274
                                                       
 
 
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)
 
Famous Footwear Wholesale Operations Specialty Retail Other Consolidated
26 Weeks Ended 26 Weeks Ended 26 Weeks Ended 26 Weeks Ended 26 Weeks Ended
August 2, August 3, August 2, August 3, August 2, August 3, August 2, August 3, August 2, August 3,
(Thousands) 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
 
Gross Profit $ 339,428 $ 335,735 $ 125,300 $ 113,682 $ 37,255 $ 45,225 $ $ $ 501,983 $ 494,642
 

Charges/Other Items:

Portfolio realignment
Business exits and cost reductions                                        
Total charges/other items                                        
 
Adjusted Gross Profit $ 339,428   $ 335,735   $ 125,300   $ 113,682   $ 37,255   $ 45,225   $   $   $ 501,983   $ 494,642  
 
Operating Earnings (Loss) $ 54,429 58,011 33,003 11,303 (6,478 ) (3,155 ) (20,926 ) (22,389 ) 60,028 43,770
 

Charges/Other Items:

Portfolio realignment
Non-cash impairments/dispositions 4,660 4,660
Business exits and cost reductions               1,246                 16         1,262  
Total charges/other items               5,906                 16         5,922  
 
Adjusted Operating Earnings (Loss) $ 54,429   $ 58,011   $ 33,003   $ 17,209   $ (6,478 ) $ (3,155 ) $ (20,926 ) $ (22,373 ) $ 60,028   $ 49,692  
 
 
 
 
 
 
SCHEDULE 6
 
BROWN SHOE COMPANY, INC.
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION
                 
(Unaudited) (Unaudited)
13 Weeks Ended 26 Weeks Ended
August 2, August 3, August 2, August 3,
(Thousands, except per share data) 2014 2013 2014 2013
 
Net earnings attributable to Brown Shoe Company, Inc.:
Net earnings from continuing operations $ 18,039 $ 13,621 $ 33,515 $ 20,980
Net loss (earnings) attributable to noncontrolling interests 25 74 (22 ) 144
Net earnings allocated to participating securities   (669 )   (580 )   (1,262 )   (266 )
Net earnings from continuing operations   17,395     13,115     32,231     20,858  
 
Net earnings (loss) from discontinued operations 1,662 (16,529 )
Net earnings allocated to participating securities       (71 )        
Net earnings (loss) from discontinued operations       1,591         (16,529 )
Net earnings attributable to Brown Shoe Company, Inc. after allocation of earnings to participating securities $ 17,395   $ 14,706   $ 32,231   $ 4,329  
 
 
Basic and diluted common shares attributable to Brown Shoe Company, Inc.:
Basic common shares for continuing operations and discontinued operations 42,074 41,348 41,980 41,209
Dilutive effect of share-based awards for continuing operations and discontinued operations   202     316     218     267  
Diluted common shares for continuing operations and discontinued operations attributable to Brown Shoe Company, Inc.   42,276     41,664     42,198     41,476  
 
Basic earnings (loss) per common share:
From continuing operations $ 0.41 $ 0.32 $ 0.77 $ 0.51
From discontinued operations       0.04         (0.40 )
Basic earnings per common share attributable to Brown Shoe Company, Inc. shareholders $ 0.41   $ 0.36   $ 0.77   $ 0.11  
 
Diluted earnings (loss) per common share:
From continuing operations $ 0.41 $ 0.31 $ 0.76 $ 0.50
From discontinued operations       0.04         (0.40 )
Diluted earnings per common share attributable to Brown Shoe Company, Inc. shareholders $ 0.41   $ 0.35   $ 0.76   $ 0.10  
 
 
 
 
 
 
SCHEDULE 7
 
BROWN SHOE COMPANY, INC.
BASIC AND DILUTED ADJUSTED EARNINGS PER SHARE RECONCILIATION
                 
(Unaudited) (Unaudited)
13 Weeks Ended 26 Weeks Ended
August 2, August 3, August 2, August 3,
(Thousands, except per share data) 2014 2013 2014 2013
 
Adjusted net earnings attributable to Brown Shoe Company, Inc.:
Adjusted net earnings from continuing operations $ 18,039 $ 14,107 $ 33,515 $ 26,443
Net loss (earnings) attributable to noncontrolling interests 25 74 (22 ) 144
Net earnings allocated to participating securities   (669 )   (601 )   (1,262 )   (1,193 )
Adjusted net earnings from continuing operations   17,395     13,580     32,231     25,394  
 
Adjusted net earnings from discontinued operations 4 1,397
Net earnings allocated to participating securities               (63 )
Net earnings from discontinued operations       4         1,334  
Adjusted net earnings attributable to Brown Shoe Company, Inc. after allocation of earnings to participating securities $ 17,395   $ 13,584   $ 32,231   $ 26,728  
 
 
Basic and diluted common shares attributable to Brown Shoe Company, Inc.:
Basic common shares for continuing operations and discontinued operations 42,074 41,348 41,980 41,209
Dilutive effect of share-based awards for continuing operations and discontinued operations   202     316     218     267  
Diluted common shares for continuing operations and discontinued operations attributable to Brown Shoe Company, Inc.   42,276     41,664     42,198     41,476  
 
Basic adjusted earnings per common share:
From continuing operations $ 0.41 $ 0.33 $ 0.77 $ 0.62
From discontinued operations               0.03  
Basic adjusted earnings per common share attributable to Brown Shoe Company, Inc. shareholders $ 0.41   $ 0.33   $ 0.77   $ 0.65  
 
Diluted adjusted earnings per common share:
From continuing operations $ 0.41 $ 0.33 $ 0.76 $ 0.61
From discontinued operations               0.03  
Diluted adjusted earnings per common share attributable to Brown Shoe Company, Inc. shareholders $ 0.41   $ 0.33   $ 0.76   $ 0.64  
 
 
 

Contacts

Brown Shoe Company
Peggy Reilly Tharp, 314-854-4134
ptharp@brownshoe.com