Brown Shoe swings to first-quarter loss on weak consumer spending
Brown Shoe Co. reported first-quarter results that beat its internal expectations but nevertheless illustrated the roughness of the economy.
The Clayton-based parent company of Famous Footwear, Naturalizer, and Dr. Scholl’s posted a loss of $7.6 million. or 18 cents per share, compared to a profit of $7.2 million, or 17 cents per share, in the same period a year ago. Sales dropped 2.8 percent to $538.7 million.
"The consumer spending environment remained challenging" in the first quarter, Ron Fromm, Brown Shoe’s chairman and chief executive, said in a statement.
Fromm said the company focused on managing expenses while reducing inventory and debt. The company generated cash and lowered its net borrowings by more than $30 million bad credit payday loans.
The company said it would keep its number of stores steady, at best, and might actually reduce its stores by 15 this year. Additionally, it plans to cut its store roster by about 30 stores in 2010, and again in 2011.
It expects to again lose money in the second quarter, but less than in the first quarter. Trimming expenses will allow the company to generate earnings for 2009, Brown Shoe said. Its sales should total in the $2.2 billion to $2.3 billion range this year.
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