Brown Shoe

Brown Shoe Co. Inc. (St. Louis) has reported a 20.2 percent rise in consolidated net sales for its second quarter ended July 30, 2005.

“Brown Shoe recorded solid progress during the first half of the year, and results for the second quarter were in-line with guidance,” said chairman and ceo Ron Fromm. “We acquired Bennett Footwear, rolled-out a plan to strengthen Naturalizer and added industry-leading talent. Further, as a result of the brand- and business-building initiatives we put in place late last year, we are seeing a rebound in our wholesale segment. More importantly, we move forward with a portfolio of brands and a Famous Footwear chain that are positioned for growth.”

Total sales at Famous Footwear, the company’s 933-store family footwear chain, were up 6.1 percent and same-store sales were up 2.2 percent. While the return of warm weather helped spur a much stronger sandal business than previously anticipated, it also served to dampen demand for closed-toe footwear and athletics. As a result, the chain took markdowns to ensure its inventory would be well positioned for the back-to-school season.

The company’s specialty retail division, which is comprised of 369 stores in the U.S. and Canada under the Naturalizer, F.X. LaSalle and Via Spiga names, posted an 11.3 percent increase in sales for the quarter. The division had an operating loss of $5.4 million, reflecting pre-tax costs of $2.3 million to close underperforming Naturalizer stores and consolidate Canadian operations, as well as lower margins and a loss at the Via Spiga stores.

During the quarter, Famous Footwear opened 15 stores and closed nine stores; Naturalizer opened four new stores and closed nine (six in the U.S. and three in Canada).