Footwear retailer Brown Shoe Co. Inc. (BWS) Friday reported a profit for its fourth quarter, reflecting higher sales and a sharp decline in portfolio-realignment costs. Both earnings per share and revenues topped analysts' expectations. The company also provided earnings and revenue outlook for fiscal 2013, but below the Consensus.
In the fourth quarter, net earnings attributable to the company was $4.04 million or $0.09 per share, compared with a loss of $8.22 million or $0.21 per share in the previous year.
The company said its latest-quarterly results included portfolio realignment costs of $2.9 million, significantly lower than portfolio realignment and integration related costs totaling $18.5 million.
On an adjusted basis, net earnings were $0.14 per share. On average, five analysts polled by Thomson Reuters expected the company to earn $0.08 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter increased 1.8 percent to $640.18 million, which also exceeded analysts' estimate of $634.33 million.
Famous Footwear sales grew 7.9 percent and same-store-sales were up 4.4 percent in the fourth quarter. Meanwhile, Wholesale Operations and Specialty Retail sales declined 5.2 and 8.1 percent, respectively.
The company said results for both the quarters included sales of $2.8 million and $16.5 million, respectively from brands and businesses the company has exited. Excluding exited brands, sales were up 4.8 percent year-over-year.
For full year 2012, net earnings were $27.49 million or $0.64 per share, higher than $24.59 million or $0.56 per share last year. Adjusted earnings were $1.13 per share. Net sales increased to $2.6 billion from $2.58 billion in 2011.
Diane Sullivan, president and chief executive officer of the company said, "In 2012, we hit several milestones at Famous Footwear, by achieving record-breaking sales for the 52-week year, as well as our highest annual operating profit."
For fiscal 2013, the company expects earnings per share to be in the range of $1.16 to $1.23, and adjusted earnings per share of $1.18 to $1.25.
Consolidated net sales for the fiscal are expected to be between $2.55 billion and $2.58 billion.
Analysts expect the company to report earnings of $1.31 per share on revenues of $2.64 billion for fiscal 2013.
During the quarter, the company closed or relocated 18 stores and added 12 new stores.
BWS closed Thursday's regular trading at $18.4 on the NYSE. In the pre-market activity, the shares are down 1.31 percent.
by RTT Staff Writer
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