ST. LOUIS, Nov. 24 /PRNewswire-FirstCall/ -- Brown Shoe Company, Inc. reported results for the third quarter of 2009 ended October 31, 2009.
Third Quarter 2009 Results -- Net sales were $625.6 million, a decrease of 1.0 percent, compared to $631.7 million in the year-ago quarter; -- Same-store sales for Famous Footwear increased 4.7 percent during the quarter and Specialty Retail same-store sales increased 4.1 percent; -- Gross profit rate increased by 210 basis points to 41.4 percent of net sales; -- Operating earnings of $34.3 million; and -- Net earnings attributable to Brown Shoe Company, Inc. (hereafter "net earnings") were $16.3 million, or $0.38 per diluted share, inclusive of charges related to its information technology initiatives of $1.4 million, or $0.04 per diluted share. This compares to net earnings in the third quarter of 2008 of $10.4 million, or $0.25 per diluted share, which included charges of $10.1 million, or $0.24 per diluted share, related to the Company's headquarters consolidation and information technology initiatives.
Ron Fromm, Brown Shoe's Chairman and Chief Executive Officer, stated, "We are pleased that we delivered better-than-expected sales and earnings during the third quarter. Our strategies to offer trend-right product, an enhanced store experience, and the increased reach of our marketing communications helped deliver a strong Back-to-School selling season at Famous Footwear. In addition, improved consumer reaction to our Naturalizer product and our other wholesale brands drove better sell-thrus at retail and, in particular, strong same-store sales results at our Naturalizer stores. This, coupled with our expense and inventory disciplines, drove greater gross margins and improved operating performance in the quarter."
Fromm concluded, "Although the timing of economic recovery remains uncertain, we are continuing these strategies into the fourth quarter and holiday season, as we expect consumers will continue to shop later in the season. In addition, we believe the brands across our portfolio are well-positioned to gain market share, given their strong value propositions to consumers at diverse price points and channels of distribution."
Palermo ShirtConsolidated Results for Third Quarter 2009: -- Net sales were $625.6 million, a decrease of 1.0 percent, compared to $631.7 million in the third quarter of 2008. -- Famous Footwear net sales were $389.2 million, an increase of 7.3 percent from the third quarter of last year, driven by a 4.7 percent same-store sales increase and operating 10 more stores than in the year-prior period; -- Net sales in the Company's Specialty Retail division increased 1.4 percent to $66.5 million, reflecting a 4.1 percent same-store sales increase during the quarter; and -- Net sales at the Company's Wholesale division were $169.9 million, a decrease of 16.5 percent, in the quarter versus the same period last year, in line with the Company's previous outlook; -- Gross profit rate in the third quarter increased 210 basis points to 41.4 percent of net sales from 39.3 percent of net sales in the third quarter of 2008, attributable to several factors, including: -- a 390 basis point improvement in gross profit rate in its Wholesale business, driven primarily by an increase in the mix of higher-margin branded sales and an increase in vertical profit; -- an increase in the mix of the Company's retail business, which generates a higher gross profit rate than Wholesale. Retail net sales represented 73 percent of consolidated net sales in the third quarter of 2009 versus 68