Brown Shoe Swings To Profit In Q1, Lifts FY14 EPS Outlook; Shares Rise - Update

(RTTNews) - Brown Shoe Co. Inc.(BWS) Wednesday reported a profit for the first quarter compared to a loss last year, reflecting a marginal increase in sales as well as restructuring and impairment charges recorded in the prior year. Earnings per share beat analysts' expectations, while revenues came below view.

The company said it feels optimistic about second quarter, and raised its fiscal 2014 earnings per share outlook. The shares rose more than 7 percent in the early morning trade.

For the 13 weeks ended May 3, net earnings attributable to the company was $15.43 million or $0.35 per share, compared to a net loss of $10.76 million or $0.26 per share in the previous year.

Adjusted earnings for the prior-year quarter were $0.32 per share. On average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.31 per share for the quarter. Analysts' estimates typically exclude special items.

"First quarter results exceeded our expectations, thanks to strong Contemporary Fashion platform sales and a return to more seasonal weather for the last two weeks of April," said Diane Sullivan, CEO, president and chairman of the company.

During the first quarter of last fiscal, the firm recorded restructuring and other special charges of $519 thousand, and impairment of assets held for sale totaling $4.66 million.

Net sales for the quarter increased to $591.16 million from $588.66 million a year ago. Wall Street expected revenues of $592.46 million.

Famous Footwear sales edged up 0.7 percent, while Wholesale sales were up 5.6 percent from last year.

Margin improved to 41 percent from 40.8 percent last year.

For fiscal 2014, the company now expects earnings per share to be in the range of $1.47 to $1.57, up from the prior estimate of $1.45 to $1.55 per share. Meanwhile, the firm maintained its annual consolidated net sales guidance range of $2.58 billion to $2.60 billion.

Street is currently looking for fiscal year 2014 earnings of $1.55 per share, on annual revenues of $2.59 billion. BWS is currently trading at $28.30, up 7.03 percent.