Footwear retailer Brown Shoe Co. Inc. (BWS), Tuesday reported a decline in third-quarter profit compared with last year, when results benefited from one-time gains. Nonetheless, quarterly earnings topped Wall Street estimates on growth at its Famous Footwear Stores amid a strong back-to-school season.
Brown Shoe raised its adjusted earnings outlook for the full year 2012, sending its shares up 6 percent in morning trade on the New York Stock Exchange.
Brown Shoe reported a 2.6 percent rise in sales for the quarter. Same-store sales at its Famous Footwear Stores increased 6.8 percent, on robust demand for boat shoes, running shoes and accessories.
CEO Diane Sullivan said, "We also saw improvement in sales for both our contemporary fashion and healthy living brand portfolios, as we continued to deliver trend-right products that are must-haves for consumers."
St. Louis, Missouri-based Brown Shoe reported third-quarter revenues of $732.2 million, up from $714 million in the prior year. Analysts estimated revenues of $703.27 million for the quarter.
The company posted third-quarter net profit of $24 million or $0.56 per share, down from $33.7 million or $0.79 per share a year earlier.
Results for the prior-year quarter included, among other items, one-time gains of $21.6 million.
Excluding items, adjusted earnings for the quarter totaled $26 million or $0.60 per share, compared with $22 million or $0.51 per share a year ago. On average, five analysts polled by Thomson Reuters expected earnings of $0.46 per share for the quarter. Analysts' estimates typically exclude special items.
For the fiscal year 2012, Brown Shoe now estimates adjusted earnings of $1.06 to $1.10 per share, up from prior guidance of $0.85 to $0.95 per share. Revenues are still expected in the range of $2.57 billion to $2.59 billion.
Analysts currently expect earnings of $0.92 per share on revenues of $2.57 billion for the full year 2012.
Shares of Brown Shoe are trading at $16.74, up $1.00 or 6.37%, on the NYSE.
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