Brown Shoe Company Inc. (BWS, Financial) filed Quarterly Report for the period ended 2010-07-31.
Brown Shoe Company Inc. has a market cap of $488.28 million; its shares were traded at around $11.25 with a P/E ratio of 11.03 and P/S ratio of 0.22. The dividend yield of Brown Shoe Company Inc. stocks is 2.49%.BWS is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
During 2008, we began implementation of an integrated ERP information technology system provided by third-party vendors. The ERP information technology system is replacing select existing internally developed and certain other third-party applications, and is expected to support our business model. We expect the implementation will enhance our profitability through improved management and execution of our business operations, financial systems, supply chain efficiency and planning and employee productivity. The phased implementation began during 2008 and is expected to be substantially complete in the fourth quarter of 2010. We incurred expenses of $1.9 million ($1.3 million on an after-tax basis, or $0.03 per diluted share) and $3.6 million ($2.4 million on an after-tax basis, or $0.06 per diluted share) during the second quarter and first half of 2010, respectively, as a component of restructuring and other special charges, net related to these initiatives. We incurred expenses of $2.0 million ($1.3 million on an after-tax basis, or $0.03 per diluted share) and $4.6 million ($3.0 million on an after-tax basis, or $0.07 per diluted share) during the second quarter and first half of 2009, respectively, as a component of restructuring and other special charges, net related to these initiatives.
Net sales increased $74.2 million, or 14.5%, to $585.8 million for the second quarter of 2010, compared to $511.6 million for the second quarter of last year. All segments experienced an increase in net sales during the second quarter of 2010 as compared to the second quarter of 2009. Our Wholesale Operations segment reported a $36.6 million increase in net sales, primarily as a result of strong demand and sales growth in many of our brands, led by our Dr. Scholl s, Sam Edelman, Vera Wang Lavender and Via Spiga divisions. Our Famous Footwear segment reported a $33.2 million increase in net sales, reflecting an 11.8% same-store sales increase, resulting from a higher conversion rate in our stores, higher average retail prices and increases in customer traffic levels. The net sales of our Specialty Retail segment increased $4.3 million, primarily reflecting a 6.8% same-store sales increase in our retail stores and higher net sales at Shoes.com.
Net sales increased $133.1 million, or 12.7%, to $1,183.5 million for the first half of 2010, compared to $1,050.4 million for the first half of last year. All segments experienced an increase in net sales during the first half of 2010 as compared to the first half of 2009. Our Famous Footwear segment reported a $77.8 million increase in net sales, reflecting a 13.6% same-store sales increase for the same reasons as those described above for the second quarter. Our Wholesale Operations segment reported a $42.5 million increase in net sales, primarily as a result of strong demand and sales growth in many of our brands, including primarily our Dr. Scholl s, Sam Edelman, Vera Wang Lavender, Via Spiga and Naturalizer divisions. The net sales of our Specialty Retail segment increased $12.8 million, reflecting an 11.3% same-store sales increase in our retail stores, an increase in the Canadian dollar exchange rate and higher net sales at Shoes.com.
Gross profit increased $34.9 million, or 17.1%, to $238.5 million for the second quarter of 2010, compared to $203.6 million for the second quarter of last year, resulting from both higher net sales and a higher gross profit rate. As a percent of net sales, our gross profit increased to 40.7% for the second quarter of 2010 from 39.8% for the second quarter of last year. Our Famous Footwear segment contributed to the improvement in the gross profit rate, as the segment experienced strong sales of higher-margin categories, improved sell-through associated with its sharper focus on trend-right merchandise and a significant decrease in promotional activity during the quarter. The gross profit rate increase in our Famous Footwear segment was partially offset by a decline in the gross profit rate recognized by our Wholesale Operations segment resulting primarily from the increased mix of our wholesale brands sold to third parties as well as shifts in channel and brand mix and increased air freight costs.
We reported net earnings attributable to Brown Shoe Company, Inc. of $5.3 million and $15.3 million during the second quarter and first half of 2010, respectively, compared to a net loss attributable to Brown Shoe Company, Inc. of $4.2 million and $11.8 million during the second quarter and first half of last year, respectively, as a result of the factors described above.
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Brown Shoe Company Inc. has a market cap of $488.28 million; its shares were traded at around $11.25 with a P/E ratio of 11.03 and P/S ratio of 0.22. The dividend yield of Brown Shoe Company Inc. stocks is 2.49%.BWS is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Our debt-to-capital ratio, the ratio of our debt obligations to the sum of our debt obligations and equity, decreased to 32.1% at July 31, 2010, compared to 33.7% at August 1, 2009, primarily due to the $12.0 million decline in borrowings under our revolving credit agreement. Our debt-to-capital ratio decreased from 37.3% at January 30, 2010 primarily due to the $59.0 million decline in borrowings under our revolving credit agreement. Our current ratio, the relationship of current assets to current liabilities, was 1.59 to 1 at July 31, 2010, compared to 1.63 to 1 at August 1, 2009 and 1.71 to 1 at January 30, 2010. Inventories at July 31, 2010 were $578.1 million, up from $526.8 million at the end of the second quarter of last year, primarily in our Famous Footwear and Wholesale Operations segments, in support of higher sales levels, including our investments in wellness initiatives and accessories, and in order to be well positioned for the back-to-school season.During 2008, we began implementation of an integrated ERP information technology system provided by third-party vendors. The ERP information technology system is replacing select existing internally developed and certain other third-party applications, and is expected to support our business model. We expect the implementation will enhance our profitability through improved management and execution of our business operations, financial systems, supply chain efficiency and planning and employee productivity. The phased implementation began during 2008 and is expected to be substantially complete in the fourth quarter of 2010. We incurred expenses of $1.9 million ($1.3 million on an after-tax basis, or $0.03 per diluted share) and $3.6 million ($2.4 million on an after-tax basis, or $0.06 per diluted share) during the second quarter and first half of 2010, respectively, as a component of restructuring and other special charges, net related to these initiatives. We incurred expenses of $2.0 million ($1.3 million on an after-tax basis, or $0.03 per diluted share) and $4.6 million ($3.0 million on an after-tax basis, or $0.07 per diluted share) during the second quarter and first half of 2009, respectively, as a component of restructuring and other special charges, net related to these initiatives.
Net sales increased $74.2 million, or 14.5%, to $585.8 million for the second quarter of 2010, compared to $511.6 million for the second quarter of last year. All segments experienced an increase in net sales during the second quarter of 2010 as compared to the second quarter of 2009. Our Wholesale Operations segment reported a $36.6 million increase in net sales, primarily as a result of strong demand and sales growth in many of our brands, led by our Dr. Scholl s, Sam Edelman, Vera Wang Lavender and Via Spiga divisions. Our Famous Footwear segment reported a $33.2 million increase in net sales, reflecting an 11.8% same-store sales increase, resulting from a higher conversion rate in our stores, higher average retail prices and increases in customer traffic levels. The net sales of our Specialty Retail segment increased $4.3 million, primarily reflecting a 6.8% same-store sales increase in our retail stores and higher net sales at Shoes.com.
Net sales increased $133.1 million, or 12.7%, to $1,183.5 million for the first half of 2010, compared to $1,050.4 million for the first half of last year. All segments experienced an increase in net sales during the first half of 2010 as compared to the first half of 2009. Our Famous Footwear segment reported a $77.8 million increase in net sales, reflecting a 13.6% same-store sales increase for the same reasons as those described above for the second quarter. Our Wholesale Operations segment reported a $42.5 million increase in net sales, primarily as a result of strong demand and sales growth in many of our brands, including primarily our Dr. Scholl s, Sam Edelman, Vera Wang Lavender, Via Spiga and Naturalizer divisions. The net sales of our Specialty Retail segment increased $12.8 million, reflecting an 11.3% same-store sales increase in our retail stores, an increase in the Canadian dollar exchange rate and higher net sales at Shoes.com.
Gross profit increased $34.9 million, or 17.1%, to $238.5 million for the second quarter of 2010, compared to $203.6 million for the second quarter of last year, resulting from both higher net sales and a higher gross profit rate. As a percent of net sales, our gross profit increased to 40.7% for the second quarter of 2010 from 39.8% for the second quarter of last year. Our Famous Footwear segment contributed to the improvement in the gross profit rate, as the segment experienced strong sales of higher-margin categories, improved sell-through associated with its sharper focus on trend-right merchandise and a significant decrease in promotional activity during the quarter. The gross profit rate increase in our Famous Footwear segment was partially offset by a decline in the gross profit rate recognized by our Wholesale Operations segment resulting primarily from the increased mix of our wholesale brands sold to third parties as well as shifts in channel and brand mix and increased air freight costs.
We reported net earnings attributable to Brown Shoe Company, Inc. of $5.3 million and $15.3 million during the second quarter and first half of 2010, respectively, compared to a net loss attributable to Brown Shoe Company, Inc. of $4.2 million and $11.8 million during the second quarter and first half of last year, respectively, as a result of the factors described above.
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