Brown Shoe Company, Inc. (NYSE:BWS) Reports 4Q10 Results below Expectation

Brown Shoe Company, Inc. (NYSE:BWS) reported fourth fiscal quarter result below analysts' expectation on Tuesday. The Company said it posted net earnings of $3.4 million, or $0.08 per share, in the fiscal fourth quarter, compared to $5 million, or $0.12 per share, in the same quarter last year. Excluding items, adjusted earnings totaled $0.11 per share, missing analyst estimate by 4 cents. Net sales rose 6.8%, to $604.5 million from $566.0 million in the year-ago period, below the street estimate of $618.5 million. Gross profit accounts for 38.9% of sales versus 41.1% last year and it increased by $2.9 million year over year to $235.3 million. Famous Footwear net sales increased 3.7% to $355.5 million, driven by a 4.9% same-store sales increase. It's gross profit rate increased by 50 basis points to 44.6% of net sales. Net sales in the Wholesale division rose 15.1% to $173.9 million, with increases across the majority of its brands and channels of distribution and its gross profit rate decreased to 26.6% of net sales in the quarter from 34.6% in the year-ago period. Net sales in the Specialty Retail division were $75.1 million, reflecting a 3.2% same-store sales increase and its gross profit rate increased by 30 basis points to 40.6% of net sales. The company expects to earn between $1.37-$1.47 a share in 2011, while analysts were expecting a profit of $1.42 a share. For the first quarter of 2011, consolidated net sales are expected to increase in the high-single digit range, which includes an increase in same store sales at Famous Footwear in the low single digit range and an increase in Wholesale net sales in the high teens range, which includes sales from ASG brands. Analysts' are expecting to post revenues of $624 million for the first quarter of 2011. Shares of the company tumbled $2.77 or 19.33% to $11.56.Volume of 3.63 million shares has been traded compared to the daily average of 0.380 million shares. The stock has 52 week range of $10.25-$19.96. The market capitalization of the stock stands at $507.10 million P/E of 12.98 and beta of 2.10. Brown Shoe Company, Inc. (Brown Shoe) operates in the footwear industry. Its activities include the operation of retail shoe stores and e-commerce Websites, as well as the sourcing and marketing of footwear for women, men and children. During the fiscal year ended January 30, 2010 (fiscal 2009), categories of its consolidated net sales were approximately 59% women's footwear, 26% men's footwear, 11% children's footwear and 4% accessories. Disclaimer: The assembled information distributed by epicstockpicks.com is for information purposes only, and is neither a solicitation to buy nor an offer to sell securities. Epicstockpicks.com does expect that investors will buy and sell securities based on information assembled and presented herein. EpicStockPicks.com will not be responsible in any way for or accept any liability for any losses arising from an investor's reliance on or use of information obtained from our website or emails. PLEASE always do your own due diligence, and consult your financial advisor.
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