COLLECTIVE BRANDS (PSS, Financial) filed Quarterly Report for the period ended 2009-10-31.
Payless ShoeSource, Inc. is the largest specialty family footwear retailer in the Western Hemisphere, dedicated to democratizing fashion and design in footwear and accessories and inspiring fun, fashion possibilities for the family at a great value. Collective Brands has a market cap of $1.29 billion; its shares were traded at around $20.17 with a P/E ratio of 26.9 and P/S ratio of 0.4.
Net earnings attributable to Collective Brands, Inc. for the first nine months of 2009 was $93.6 million, or $1.46 per diluted share versus the first nine months of 2008 results of $75.3 million, or $1.19 per diluted share. Results for the first nine months of 2008 include charges related to litigation totaling $61.9 million pre-tax and incremental costs resulting from the flow through of acquired inventory recorded at fair value in the Stride Rite acquisition totaling $3.5 million pre-tax. For the first nine months of 2008, pre-tax operating profit from the Tommy Hilfiger adult footwear license totaled $10.6 million. Results for the first nine months of 2008 reflect an effective income tax rate benefit resulting from adjusting our year-to-date tax provision to reflect the reduced effective tax rate for the year.
For the third quarter of 2009, net sales increased 0.5% or $4.3 million, to $867.0 million, from the third quarter of 2008. Net sales increased from the third quarter last year due primarily to an increase in comparable store sales due to the Oprah Promotion, higher unit sales in childrens footwear, boots and womens accessories at Payless stores, offset by the impact of the expiration of the Tommy Hilfiger adult footwear license. Net sales increased in our Payless Domestic reporting segment by 4.4%, or $24.4 million, to $578.1 million from the third quarter of 2008. Net sales decreased in our Payless International reporting segment by 1.3%, or $1.4 million, to $110.0 million from the third quarter of 2008. Net sales from our PLG Wholesale reporting segment decreased 15.5%, or $20.5 million, to $111.6 million in the third quarter of 2009. Net sales increased in our PLG Retail reporting segment by 2.7%, or $1.8 million, to $67.3 million from the third quarter of 2008. Please refer to Reporting Segment Review of Operations below for the further details on the changes in net sales for each of our reporting units.
For the first nine months of 2009, net sales decreased 5.2% or $140.6 million, to $2,556.2 million, from the first nine months of 2008. Net sales decreased from the first nine months of last year due primarily to a decline in comparable store sales, the impact of the expiration of the Tommy Hilfiger adult footwear license, and foreign currency exchange rates. Net sales decreased in our Payless Domestic reporting segment by 2.0% or $33.9 million to $1,695.7 million from the first nine months of 2008. Net sales decreased in our Payless International reporting segment by 10.3% or $34.2 million to $298.5 million from the first nine months of 2008. Net sales from our PLG Wholesale reporting segment decreased 15.9% or $75.1 million, to $398.1 million in the first nine months of 2009. Net sales increased in our PLG Retail reporting segment by 1.5% or $2.6 million to $173.9 million from the first nine months of 2008. Please refer to Reporting Segment Review of Operations below for the further details on the changes in net sales for each of our reporting units.
Cost of sales was $1,668.9 million in the first nine months of 2009, down 8.3% from $1,820.2 million in the first nine months of 2008. The decrease in cost of sales from 2008 to 2009 is primarily due to the impact of the $61.9 million charge we recorded in connection with litigation during the first nine months of 2008, the expiration of the Tommy Hilfiger adult footwear license and lower net sales in 2009.
We have unrecognized tax benefits, inclusive of related interest and penalties, of $66.7 million and $64.4 million during the periods ended October 31, 2009 and November 1, 2008, respectively. The portion of the unrecognized tax benefits that would impact the effective income tax rate if recognized are $40.6 million and $50.9 million, respectively.
Read the The complete ReportPSS is in the portfolios of Robert Olstein of Olstein Financial Alert Fund, PRIMECAP Management, Paul Tudor Jones of The Tudor Group, Chuck Royce of ROYCE & ASSOCIATES, Chuck Royce of ROYCE & ASSOCIATES, George Soros of Soros Fund Management LLC.
Payless ShoeSource, Inc. is the largest specialty family footwear retailer in the Western Hemisphere, dedicated to democratizing fashion and design in footwear and accessories and inspiring fun, fashion possibilities for the family at a great value. Collective Brands has a market cap of $1.29 billion; its shares were traded at around $20.17 with a P/E ratio of 26.9 and P/S ratio of 0.4.
Highlight of Business Operations:
Third quarter 2009 net earnings attributable to Collective Brands, Inc. was $36.9 million, or $0.57 per diluted share versus third quarter 2008 results of $47.5 million, or $0.74 per diluted share. Results for the third quarter 2009 include a pre-tax litigation charges of $2.5 million and pre-tax severance charges of $1.6 million. Results for the third quarter 2008 include a net pre-tax benefit related to litigation of $4.3 million due to net insurance recoveries and pre-tax operating profit from the Tommy Hilfiger adult footwear license of $2.9 million. Our licensing agreement with Tommy Hilfiger for adult footwear expired in December 2008. Therefore, there are no revenues or earnings from the Tommy Hilfiger adult footwear license since January 1, 2009. Results for the third quarter of 2008 reflect an effective income tax rate benefit resulting from adjusting our year-to-date tax provision to reflect the reduced effective tax rate for the year.Net earnings attributable to Collective Brands, Inc. for the first nine months of 2009 was $93.6 million, or $1.46 per diluted share versus the first nine months of 2008 results of $75.3 million, or $1.19 per diluted share. Results for the first nine months of 2008 include charges related to litigation totaling $61.9 million pre-tax and incremental costs resulting from the flow through of acquired inventory recorded at fair value in the Stride Rite acquisition totaling $3.5 million pre-tax. For the first nine months of 2008, pre-tax operating profit from the Tommy Hilfiger adult footwear license totaled $10.6 million. Results for the first nine months of 2008 reflect an effective income tax rate benefit resulting from adjusting our year-to-date tax provision to reflect the reduced effective tax rate for the year.
For the third quarter of 2009, net sales increased 0.5% or $4.3 million, to $867.0 million, from the third quarter of 2008. Net sales increased from the third quarter last year due primarily to an increase in comparable store sales due to the Oprah Promotion, higher unit sales in childrens footwear, boots and womens accessories at Payless stores, offset by the impact of the expiration of the Tommy Hilfiger adult footwear license. Net sales increased in our Payless Domestic reporting segment by 4.4%, or $24.4 million, to $578.1 million from the third quarter of 2008. Net sales decreased in our Payless International reporting segment by 1.3%, or $1.4 million, to $110.0 million from the third quarter of 2008. Net sales from our PLG Wholesale reporting segment decreased 15.5%, or $20.5 million, to $111.6 million in the third quarter of 2009. Net sales increased in our PLG Retail reporting segment by 2.7%, or $1.8 million, to $67.3 million from the third quarter of 2008. Please refer to Reporting Segment Review of Operations below for the further details on the changes in net sales for each of our reporting units.
For the first nine months of 2009, net sales decreased 5.2% or $140.6 million, to $2,556.2 million, from the first nine months of 2008. Net sales decreased from the first nine months of last year due primarily to a decline in comparable store sales, the impact of the expiration of the Tommy Hilfiger adult footwear license, and foreign currency exchange rates. Net sales decreased in our Payless Domestic reporting segment by 2.0% or $33.9 million to $1,695.7 million from the first nine months of 2008. Net sales decreased in our Payless International reporting segment by 10.3% or $34.2 million to $298.5 million from the first nine months of 2008. Net sales from our PLG Wholesale reporting segment decreased 15.9% or $75.1 million, to $398.1 million in the first nine months of 2009. Net sales increased in our PLG Retail reporting segment by 1.5% or $2.6 million to $173.9 million from the first nine months of 2008. Please refer to Reporting Segment Review of Operations below for the further details on the changes in net sales for each of our reporting units.
Cost of sales was $1,668.9 million in the first nine months of 2009, down 8.3% from $1,820.2 million in the first nine months of 2008. The decrease in cost of sales from 2008 to 2009 is primarily due to the impact of the $61.9 million charge we recorded in connection with litigation during the first nine months of 2008, the expiration of the Tommy Hilfiger adult footwear license and lower net sales in 2009.
We have unrecognized tax benefits, inclusive of related interest and penalties, of $66.7 million and $64.4 million during the periods ended October 31, 2009 and November 1, 2008, respectively. The portion of the unrecognized tax benefits that would impact the effective income tax rate if recognized are $40.6 million and $50.9 million, respectively.
Read the The complete ReportPSS is in the portfolios of Robert Olstein of Olstein Financial Alert Fund, PRIMECAP Management, Paul Tudor Jones of The Tudor Group, Chuck Royce of ROYCE & ASSOCIATES, Chuck Royce of ROYCE & ASSOCIATES, George Soros of Soros Fund Management LLC.
