Wednesday, Brown Shoe Co., Inc.(BWS), reported a loss for the second quarter ended August 1, compared with profit for the same quarter last year. Decline in sales and higher interest expense dented the quarterly results. In the morning hours of trading shares are down more than 8%.
Brown Shoe reported a net loss of $4.24 million or $0.10 per share compared with net earnings of $2.22 million or $0.05 per share a year earlier. The net loss for the period includes income tax benefit of $5.53 million and interest expense of $4.91 million.
The company reported adjusted net loss of $2.96 million or $0.07 per share. The company reported adjustment of charges related to its information technology initiatives of $1.3 million or $0.03 per diluted share. Operating loss for the second quarter was $4.98 million compared with operating earnings of $5.15 million last year.
On average, 5 analysts polled by Thomson Reuters expected Brown Shoe to report a loss of $0.07 per share. Analysts' estimates typically exclude one-time items.
Net sales for the second quarter declined to $511.62 million from $569.22 million a year earlier. Analysts were looking for $539.27 million.
Cost of goods sold for the second quarter declined to $307.98 million from $345.72 million for the same period last year. While, selling and administrative expenses declined marginally to $206.62 million from $207.96 million a year earlier.
Famous Footwear segment's net sales declined to $314.1 million from $326.2 million for the same period last year. Same store sales declined 6.7% for the second quarter.
Wholesale segment's net sales of the segment declined sharply to $142.1 million from $180.1 for the same period last year.
Specialty retail segment recorded net revenues of $55.5 million, down from $63 million last year. Same-store sales declined 3.8% for the second quarter.
Operator of Famous Footwear reported net loss of $11.29 million for the six months compared with net earnings of $8.88 million for the same period last year.
Net sales for the six months declined to $1.05 billion from $1.12 billion a year earlier.
Looking forward, the Company expects to generate positive earnings in the third and fourth quarters, resulting in positive net earnings for the full year.
Still, Brown Shoe expects Famous Footwear same-store sales to decline by low to mid single digit range for the second half of the year.
Famous Footwear, retailer of brand name footwear for the family, with 1,100 stores in U.S operating under the Famous Footwear. The retailer in early August reported launch of MakeTodayUnexpected.com as part of consumer communications campaign in the majority of its more than 1,100 stores across the country.
Brown Shoe's Board of Directors have declared a quarterly dividend of $0.07 per share, payable on October 1 to shareholders of record on September 18.
BWS is currently trading at $7.26, down 9.36% on NYSE.
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