Brown Shoe Company Inc. (BWS, Financial) filed Quarterly Report for the period ended 2008-11-01.
Brown Shoe Company formerly known as Brown Group Inc. operates in the footwear industry. Current activities include the operation of retail shoe stores and foreign sourcing and marketing of footwear for women men and children. The company's business is somewhat seasonal in nature due to consumer spending patterns with higher back-to-school Easter and Christmas holiday season sales. Brown Shoe Company Inc. has a market cap of $265.83 million; its shares were traded at around $6.18 with a P/E ratio of 6.41 and P/S ratio of 0.11. The dividend yield of Brown Shoe Company Inc. stocks is 4.46%. Brown Shoe Company Inc. had an annual average earning growth of 11.3% over the past 10 years. GuruFocus rated Brown Shoe Company Inc. the business predictability rank of 3-star.
Under various state economic development programs, we are collaborating with public partners to receive eligible incentives related to training, job creation and the redevelopment of our St. Louis, Missouri property. During the third quarter and the first nine months of 2008, we recognized $0.5 million, net of federal tax of $0.3 million, and $1.4 million, net of federal tax of $0.8 million, respectively, related to state tax incentives for these initiatives.
During the second quarter of 2008, we announced plans to implement an integrated ERP information technology system provided by third-party vendors. We will utilize an industry specific ERP information technology system solution to support our supply chain. The ERP information technology system will replace select existing internally developed and certain other third-party applications, and is expected to support our growth strategy while streamlining and transforming day-to-day operations for our integrated business model. We anticipate the implementation will enhance our profitability and deliver increased shareholder value through improved management and execution of our business operations, financial systems, supply chain efficiency and planning and employee productivity. The phased implementation began during the second quarter of 2008 and is expected to continue through 2011. We incurred charges of $0.9 million ($0.6 million on an after-tax basis, or $0.01 per diluted share) and $1.4 million ($0.9 million on an after-tax basis, or $0.02 per diluted share) during the third quarter and the first nine months of 2008, respectively, related to the early project stages of our implementation of the these initiatives.
Net sales decreased $13.8 million, or 2.2%, to $631.7 million in the third quarter of 2008, as compared to $645.5 million in the third quarter of last year. All segments were impacted by the challenging consumer environment. Our Wholesale Operations segment reported a $10.3 million decline in net sales, as our retail partners experienced the same business environment and sought to manage their inventories more tightly. In addition, we continued to reallocate resources away from lower-margin private label business. Our Specialty Retail segment s net sales decreased by $5.2 million, reflecting a same-store sales decline of 6.7% in our retail stores, a weaker Canadian dollar exchange rate and a decline in net sales at Shoes.com. The net sales of our Famous Footwear segment increased by $1.7 million, reflecting a higher store count in the current period, partially offset by a same-store sales decline of 5.0%.
Net sales decreased $33.1 million, or 1.9%, to $1,755.4 million in the first nine months of 2008, as compared to $1,788.5 million in the first nine months of last year. The largest decline came from our Wholesale Operations segment, which reported a $31.8 million decline, as a result of the same issues described above for the third quarter. The net sales of our Specialty Retail segment declined by $6.5 million, due to a same-store sales decline of 4.3% in our retail stores and a reduction in net sales at Shoes.com, partially offset by a higher store count and a stronger Canadian dollar exchange rate. Our Famous Footwear segment s net sales increased by $5.2 million, reflecting a higher store count in the current period, partially offset by a same-store sales decline of 5.1%.
Interest expense was $3.9 million in the third quarter of 2008, as compared to $3.8 million in the third quarter of last year. Interest expense was $11.8 million in the first nine months of 2008, compared to $11.5 million in the first nine months of last year.
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Brown Shoe Company formerly known as Brown Group Inc. operates in the footwear industry. Current activities include the operation of retail shoe stores and foreign sourcing and marketing of footwear for women men and children. The company's business is somewhat seasonal in nature due to consumer spending patterns with higher back-to-school Easter and Christmas holiday season sales. Brown Shoe Company Inc. has a market cap of $265.83 million; its shares were traded at around $6.18 with a P/E ratio of 6.41 and P/S ratio of 0.11. The dividend yield of Brown Shoe Company Inc. stocks is 4.46%. Brown Shoe Company Inc. had an annual average earning growth of 11.3% over the past 10 years. GuruFocus rated Brown Shoe Company Inc. the business predictability rank of 3-star.
Highlight of Business Operations:
During the first quarter of 2008, we announced plans to relocate our Famous Footwear division headquarters from Madison, Wisconsin to St. Louis, Missouri. Although the final stages of our transition efforts are still ongoing, we have all of our team in place in St. Louis. The relocation of the division is intended to foster collaboration, increase our speed to market and strengthen our connection with consumers. The total costs to implement the transition are estimated to be approximately $30 million ($18 million on an after-tax basis, or $0.43 per diluted share). These costs include employee-related costs for relocation, severance, recruiting and retention, as well as lease exit, asset write-offs and other costs. The remaining costs are expected to be recognized during the fourth quarter. These estimates are preliminary and differences may arise between these estimates and the actual costs. We incurred charges of $15.6 million ($9.5 million on an after-tax basis, or $0.23 per diluted share) and $27.0 million ($16.5 million on an after-tax basis, or $0.40 per diluted share) during the third quarter and the first nine months of 2008, respectively. See Note 5 to the condensed consolidated financial statements for additional information related to these charges.Under various state economic development programs, we are collaborating with public partners to receive eligible incentives related to training, job creation and the redevelopment of our St. Louis, Missouri property. During the third quarter and the first nine months of 2008, we recognized $0.5 million, net of federal tax of $0.3 million, and $1.4 million, net of federal tax of $0.8 million, respectively, related to state tax incentives for these initiatives.
During the second quarter of 2008, we announced plans to implement an integrated ERP information technology system provided by third-party vendors. We will utilize an industry specific ERP information technology system solution to support our supply chain. The ERP information technology system will replace select existing internally developed and certain other third-party applications, and is expected to support our growth strategy while streamlining and transforming day-to-day operations for our integrated business model. We anticipate the implementation will enhance our profitability and deliver increased shareholder value through improved management and execution of our business operations, financial systems, supply chain efficiency and planning and employee productivity. The phased implementation began during the second quarter of 2008 and is expected to continue through 2011. We incurred charges of $0.9 million ($0.6 million on an after-tax basis, or $0.01 per diluted share) and $1.4 million ($0.9 million on an after-tax basis, or $0.02 per diluted share) during the third quarter and the first nine months of 2008, respectively, related to the early project stages of our implementation of the these initiatives.
Net sales decreased $13.8 million, or 2.2%, to $631.7 million in the third quarter of 2008, as compared to $645.5 million in the third quarter of last year. All segments were impacted by the challenging consumer environment. Our Wholesale Operations segment reported a $10.3 million decline in net sales, as our retail partners experienced the same business environment and sought to manage their inventories more tightly. In addition, we continued to reallocate resources away from lower-margin private label business. Our Specialty Retail segment s net sales decreased by $5.2 million, reflecting a same-store sales decline of 6.7% in our retail stores, a weaker Canadian dollar exchange rate and a decline in net sales at Shoes.com. The net sales of our Famous Footwear segment increased by $1.7 million, reflecting a higher store count in the current period, partially offset by a same-store sales decline of 5.0%.
Net sales decreased $33.1 million, or 1.9%, to $1,755.4 million in the first nine months of 2008, as compared to $1,788.5 million in the first nine months of last year. The largest decline came from our Wholesale Operations segment, which reported a $31.8 million decline, as a result of the same issues described above for the third quarter. The net sales of our Specialty Retail segment declined by $6.5 million, due to a same-store sales decline of 4.3% in our retail stores and a reduction in net sales at Shoes.com, partially offset by a higher store count and a stronger Canadian dollar exchange rate. Our Famous Footwear segment s net sales increased by $5.2 million, reflecting a higher store count in the current period, partially offset by a same-store sales decline of 5.1%.
Interest expense was $3.9 million in the third quarter of 2008, as compared to $3.8 million in the third quarter of last year. Interest expense was $11.8 million in the first nine months of 2008, compared to $11.5 million in the first nine months of last year.
Read the The complete Report
More on BWS:
Gurus buys and sells of BWS
10-year financial history of BWS.
Insider buys/sells of BWS.
