EX-99.1 2 bws8k051812ex99_1.htm EXHIBIT 99.1 bws8k051812ex99_1.htm

 
 
 

 
News
  

 
   Contacts:
   Investors
   Peggy Reilly Tharp, Brown Shoe Company
   (314) 854-4134, ptharp@brownshoe.com
   Media
   Kelly Malone, Brown Shoe Company
   (314) 854-4093, kmalone@brownshoe.com
 
 
Brown Shoe Company Reports First Quarter 2012 Results
Net sales of $626.4 million
GAAP net earnings per share of $0.04  
Adjusted net earnings per diluted share of $0.23
 

 
ST. LOUIS, May 18, 2012 – Brown Shoe Company, Inc. (NYSE: BWS, brownshoe.com) today reported its first quarter 2012 financial results, with net sales of $626.4 million compared to first quarter 2011 net sales of $619.6 million.  First quarter net earnings of $1.7 million, or $0.04 per diluted share, compared to $3.7 million, or $0.08 per diluted share, in 2011.  On an adjusted* basis, net earnings of $10.0 million, or $0.23 per diluted share, compared to $7.0 million, or $0.16 per diluted share, in the prior year.  Gross profit margin for the first quarter of 2012 was 38.2% versus 40.0% in 2011.  
 
“With sales of $626.4 million and adjusted earnings of $0.23 per share -- up 44% -- we had a great start to 2012.  Strong topline sales growth and effective expense management helped drive good quarterly results, despite some gross margin pressure,” said Diane Sullivan, president and chief executive officer of Brown Shoe Company.  “While good weather, an earlier Easter and an easier quarterly comp were welcome, these factors only helped to magnify the success we are seeing with the first phase of our portfolio realignment.”
 
“Our strong quarterly performance was better than expected and is reflective of the hard work we completed last year and are continuing to execute on this year,” continued Sullivan.  “I’m looking forward to reporting ongoing benefits from these efforts throughout this year, and we will continue to evaluate our brands and our businesses against the financial hurdles we outlined during our portfolio realignment.”  
 
 
 
 
 
 
US$M, except per share (unaudited)
13 Weeks
52 Weeks
 
1Q’12
1Q’11
Change
1Q’12
1Q’11
Change
   Famous Footwear
347.1
342.7
1.3%
1,460.7
1,467.1
(0.4%)
   Wholesale Operations
223.2
217.1
2.8%
877.0
796.7
10.1%
   Specialty Retail
56.1
59.8
(6.1%)
252.0
262.1
(3.9%)
Consolidated net sales 
$626.4
$619.6
1.1%
$2,589.7
$2,525.9
2.5%
Gross profit
239.1
248.0
(3.6%)
987.7
1,004.0
(1.6%)
   Margin
38.2%
40.0%
-180 bps
38.1%
39.7%
-160 bps
SG&A expenses
218.9
234.2
(6.5%)
922.1
932.7
(1.1%)
   % of net sales
35.0%
37.8%
-280 bps
35.6%
36.9%
-130 bps
Net restructuring, other special charges
11.5
1.7
n/m
33.4
7.9
320.4%
Operating earnings
8.7
12.1
(28.0%)
32.2
63.4
(49.3%)
   % of net sales
1.4%
1.9%
-50 bps
1.2%
2.5%
-130 bps
Net interest expense
6.1
6.6
(8.2%)
26.0
21.5
20.4%
Earnings before income tax
2.6
5.5
(52.1%)
6.2
41.9
(85.2%)
Tax rate
37.9%
38.8%
-90 bps
12.9%
28.6%
n/m
Net earnings from discountinued operations
--
0.3
(100.0%)
15.4
0.3
n/m
Net earnings  
$1.7
$3.7
(54.0%)
$22.6
$30.9
(26.8%)
   Per diluted share 
$0.04
$0.08
(50.0%)
$0.52
$0.70
(25.7%)
Adjusted operating earnings
$21.5
$16.5
29.8%
$70.3
$74.1
(5.1%)
   Adjusted per diluted share
$0.23
$0.16
43.8%
$0.77
$0.86
(10.5%)
 
First Quarter Highlights
 
Famous Footwear reported a year-over-year improvement in first quarter net sales of 1.3%, while same store sales were up 2.5%.  Improved weather, both on a quarterly sequential and year-over-year basis, helped drive strong growth in running and sandals.  During the quarter, the company closed or relocated 34 stores and added 11 new stores, and average revenue per square foot improved 4.5% over the first quarter of 2011.   
 
Wholesale Operations net sales were up 2.8%, as sales of ongoing brands exceeded the decline in sales for exited brands.  The company’s Contemporary Fashion brands were up 20.8%, with strong growth from both Franco Sarto and Sam Edelman.  In the Healthy Living portfolio, Dr. Scholl’s Shoes and Ryka both saw improved performance, as spring weather trends helped drive sandal and athletic shoe sales.
 
Consolidated gross profit declined (3.6%) in the first quarter, while gross profit margin declined by (180) basis points.  The change in gross margin, when compared to the first quarter of 2011, was primarily due to higher markdowns at both wholesale and retail.  Net sales mix at retail and wholesale was 64% and 36%, respectively, versus 65% and 35% in the first quarter of 2011.  
 
The decline in gross margin was more than offset by lower SG&A, which decreased by $15.3 million to 35.0% of net sales.  These results were due to cost reduction initiatives, in conjunction with a quarterly shift in some marketing spend.  In addition, the company operated fewer retail locations on a year-over-year basis.
 
 
 
 
Inventory at the end of the first quarter was $512.8 million, down (4.1%) compared to $534.7 million in the first quarter of 2011, with both Famous Footwear and Wholesale reporting a decrease in inventory.  At quarter-end, Brown Shoe Company had approximately $354.3 million in availability under its revolving credit facility and $39.8 million in cash and cash equivalents.  
 
Financial Review and 2012 Outlook
 
“Thanks to better than expected sales and earnings in the first quarter, we are increasing our full year EPS guidance to a range of $0.83 to $0.95,” said Mark Hood, chief financial officer of Brown Shoe Company.  “While we remain cautious about the state of the economy and the pace of the consumer recovery, we are optimistic about our ability to successfully execute on our remaining portfolio realignment efforts and drive improvement in our ongoing business.”
 
Metric
FY’12
Consolidated net sales
$2.57 to $2.59 billion
Famous Footwear same-store sales
Flat to up low single-digits
Wholesale Operations net sales
Down low single-digits, reflecting brand exits
Gross profit margin
Up 20 to 40 basis points
SG&A
$920 to $925 million
Non-recurring costs
~$20 million
Net interest expense
$23 to $25 million
Effective tax rate
38% to 40%
Earnings per diluted share
$0.53 to $0.65
Adjusted earnings per diluted share
$0.83 to $0.95
Depreciation and amortization
$57 to $58 million
Capital expenditures
$58 to $60 million

Investor Conference Call
 
Brown Shoe Company will webcast an investor conference call at 9:00 a.m. ET today, May 18, 2012.  The webcast and accompanying slides will be available at brownshoe.com/investor.  A live conference call will be available at (877) 217-9089 for analysts in North America or (706) 679-1723 for international analysts by using the conference ID 78263811.  A replay will be available on the website for a limited period.  Investors may also access the replay by dialing (855) 859-2056 in North America or (404) 537-3406 internationally and using the conference ID 78263811 through June 2, 2012.  
 
*Non-GAAP Financial Measures
 
In this press release, the company’s financial results are provided both in accordance with generally accepted accounting principles (GAAP) and using certain non-GAAP financial measures. In particular, the company provides historic and estimated future net earnings and earnings per diluted share adjusted to exclude certain gains, charges and recoveries, which are non-GAAP financial measures. These results are included as a complement to results provided in accordance with GAAP because management believes these non-GAAP financial measures help identify underlying trends in the company’s business and provide useful information to both management and investors by excluding certain items that may not be indicative of the company’s core operating results. These measures should not be considered a substitute for or superior to GAAP results.
 
 
 
 
Definitions
 
All references in this press release, outside of the condensed consolidated financial statements that follow, unless otherwise noted, related to net earnings (loss) attributable to Brown Shoe Company, Inc. and diluted earnings per common share attributable to Brown Shoe Company, Inc. shareholders, are presented as net earnings and earnings per diluted share, respectively.
 
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
 
This press release contains certain forward-looking statements and expectations regarding the company's future performance and the future performance of its brands. Such statements are subject to various risks and uncertainties that could cause actual results to differ materially. These risks include (i) changing consumer demands, which may be influenced by consumers' disposable income, which in turn can be influenced by general economic conditions; (ii) intense competition within the footwear industry; (iii) rapidly changing fashion trends and purchasing patterns; (iv) customer concentration and increased consolidation in the retail industry; (v) political and economic conditions or other threats to the continued and uninterrupted flow of inventory from China, where ASG has manufacturing facilities and both ASG and Brown Shoe Company rely heavily on third-party manufacturing facilities for a significant amount of their inventory; (vi) Brown Shoe Company’s ability to utilize its new information technology system to successfully execute its strategies, including integrating ASG’s business; (vii) the ability to recruit and retain senior management and other key associates; (viii) the ability to attract and retain licensors and protect intellectual property rights; (ix) the ability to secure/exit leases on favorable terms; (x) the ability to maintain relationships with current suppliers; (xi) compliance with applicable laws and standards with respect to lead content in paint and other product safety issues; (xii) the ability to source product at a pace consistent with increased demand for footwear; (xiii) the impact of rising prices in a potentially inflationary global environment; and (xiv) the ability of Brown Shoe Company to execute on the first phase of its portfolio realignment. The company's reports to the Securities and Exchange Commission contain detailed information relating to such factors, including, without limitation, the information under the caption Risk Factors in Item 1A of the company’s Annual Report on Form 10-K for the year ended January 28, 2012, which information is incorporated by reference herein and updated by the company’s Quarterly Reports on Form 10-Q. The company does not undertake any obligation or plan to update these forward-looking statements, even though its situation may change.
 

 
# # #
 
 
About Brown Shoe Company                                                                                 
 
Brown Shoe Company is a $2.6 billion, global, footwear company that puts consumers and their needs first, by targeting the strategic Family, Healthy Living and Contemporary Fashion platforms.  We have more than 130 years of experience, passion and product innovation and operate more than 1,300 Famous Footwear and Naturalizer retail stores across the United States, Canada and China.  We also design, source and market many well-known wholesale shoe brands -- such as Naturalizer, Dr. Scholl's Shoes, LifeStride, Sam Edelman, Franco Sarto, Via Spiga, Vera Wang , Avia and Ryka -- across multiple distribution channels.  In addition to our retail and wholesale operations, we maintain a strong online presence with our ecommerce sites, FamousFootwear.com, Naturalizer.com and Shoes.com.  Visit brownshoe.com to learn more about us.  Brown Shoe Company:  feel good and live better... feet first!
 
 
 
 
 

SCHEDULE 1
                         
BROWN SHOE COMPANY, INC.
  
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
                         
   
13 Weeks Ended
  
52 Weeks Ended
(Thousands, except per share data)
  
April 28, 2012
  
April 30, 2011
  
April 28, 2012
  
April 30, 2011
                         
Net sales
   $ 626,441     $ 619,555     $ 2,589,710     $ 2,525,928  
Cost of goods sold
     387,377       371,591       1,601,970       1,521,970  
                                 
Gross profit
     239,064       247,964       987,740       1,003,958  
                                 
Selling and administrative expenses
     218,914       234,140       922,193       932,601  
Restructuring and other special charges, net
     11,455       1,744       33,382       7,941  
                                 
Operating earnings
    8,695       12,080       32,165       63,416  
                                 
Interest expense
     (6,157 )     (6,698 )     (25,600 )     (21,833 )
Loss on early extinguishment of debt
     -       -       (1,003 )     -  
Interest income
     83       85       642       270  
                                 
Earnings from continuing operations before income taxes
    2,621       5,467       6,204       41,853  
                                 
Income tax (provision) benefit
     (993 )     (2,119 )     800       (11,980 )
                                 
Net earnings from continuing operations
     1,628       3,348       7,004       29,873  
                                 
Discontinued operations:
                                
  Earnings from operations of subsidiary, net of tax of $0, $215, $1,097 and $215, respectively
     -       293       1,408       293  
  Gain on sale of subsidiary, net of tax of $0, $0, $6,670 and $0, respectively
     -       -       13,965       -  
                                 
Net earnings from discontinued operations
     -       293       15,373       293  
                                 
Net earnings
     1,628       3,641       22,377       30,166  
                                 
   Net loss attributable to noncontrolling interests
     (67 )     (47 )     (219 )     (709 )
                                 
Net earnings attributable to Brown Shoe Company, Inc.
   $ 1,695     $ 3,688     $ 22,596     $ 30,875  
                                 
Basic earnings per common share:
                                
  From continuing operations
   $ 0.04     $ 0.08     $ 0.17     $ 0.69  
  From discontinued operations
     -       -       0.36       0.01  
Basic earnings per common share attributable to
                               
   Brown Shoe Company, Inc. shareholders
   $ 0.04     $ 0.08     $ 0.53     $ 0.70  
                                 
Diluted earnings per common share:
                                
  From continuing operations
   $ 0.04     $ 0.08     $ 0.16     $ 0.69  
  From discontinued operations
     -       -       0.36       0.01  
Diluted earnings per common share attributable to
                               
   Brown Shoe Company, Inc. shareholders
   $ 0.04     $ 0.08     $ 0.52     $ 0.70  
                                 
Basic number of shares
     40,422       42,475       40,613       42,336  
Diluted number of shares
     40,744       43,006       41,093       42,699  


 
 
 

SCHEDULE 2
  
                   
BROWN SHOE COMPANY, INC.
  
CONDENSED CONSOLIDATED BALANCE SHEETS
  
                   
   
(Unaudited)
        
(Thousands)
  
April 28, 2012
    
April 30, 2011
    
January 28, 2012
  
ASSETS
                  
                   
Cash and cash equivalents
   $ 39,792     $ 54,229     $ 47,682  
Receivables, net
     139,488       144,484       154,022  
Inventories, net
     512,819       534,725       561,797  
Prepaid expenses and other current assets
     46,051       57,468       51,637  
    Total current assets
     738,150       790,906       815,138  
                         
Property and equipment, net
     125,797       141,398       131,471  
Goodwill and intangible assets, net
     138,697       173,162       140,590  
Other assets
     138,178       135,103       140,277  
    Total assets
   $ 1,140,822     $ 1,240,569     $ 1,227,476  
                         
LIABILITIES AND EQUITY
                        
                         
Borrowings under revolving credit agreement
   $ 124,000     $ 288,000     $ 201,000  
Trade accounts payable
     182,380       171,386       190,611  
Other accrued expenses
     135,484       132,806       132,969  
   Total current liabilities
     441,864       592,192       524,580  
                         
Long-term debt
    198,680       150,000       198,633  
Deferred rent
     29,746       34,127       32,361  
Other liabilities
     57,538       44,438       58,186  
   Total other liabilities
     285,964       228,565       289,180  
                         
Total Brown Shoe Company, Inc. shareholders’ equity
     412,012       419,022       412,669  
Noncontrolling interests
     982       790       1,047  
Total equity
     412,994       419,812       413,716  
    Total liabilities and equity
   $ 1,140,822     $ 1,240,569     $ 1,227,476  

 
 
 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
  
(Unaudited)
            
             
   
13 Weeks Ended
  
 (Thousands)
  
April 28, 2012
  
April 30, 2011
OPERATING ACTIVITIES:
            
Net earnings
   $ 1,628     $ 3,641  
Adjustments to reconcile net earnings to net cash provided by (used for) operating activities:
  
   Depreciation and amortization
     13,280       14,314  
   Amortization of debt issuance costs
     629       599  
   Share-based compensation expense
     1,444       1,663  
   Tax (benefit) deficiency related to share-based plans
     (753 )     431  
   Loss on disposal of facilities and equipment
     456       308  
   Impairment charges for facilities and equipment
     2,756       543  
   Deferred rent
     (2,615 )     (551 )
   Provision for doubtful accounts
     950       335  
Changes in operating assets and liabilities, net of acquired business:
  
      Receivables
     13,587       (9,628 )
      Inventories
     49,251       39,362  
      Prepaid expenses and other current and noncurrent assets
     6,377       268  
      Trade accounts payable
    (8,268 )     (9,155 )
      Accrued expenses and other liabilities
     1,900       (37,348 )
   Other, net
     (724 )     (1,125 )
Net cash provided by operating activities
     79,898       3,657  
                 
INVESTING ACTIVITIES:
                
   Capital expenditures
     (7,008 )     (9,707 )
   Acquisition cost
     -       (156,636 )
   Cash recognized on initial consolidation
     -       3,121  
Net cash used for investing activities
     (7,008 )     (163,222 )
                 
FINANCING ACTIVITIES:
                
   Borrowings under revolving credit agreement
     165,000       759,500  
   Repayments under revolving credit agreement
     (242,000 )     (669,500 )
   Dividends paid
     (2,999 )     (3,104 )
   Debt issuance costs
     -       (1,234 )
   Issuance of common stock under share-based plans
     (2,148 )     484  
   Tax benefit (deficiency) related to share-based plans
     753       (431 )
Net cash (used for) provided by financing activities
     (81,394 )     85,715  
Effect of exchange rate changes on cash and cash equivalents
     614       1,531  
Decrease in cash and cash equivalents
     (7,890 )     (72,319 )
Cash and cash equivalents at beginning of period
     47,682       126,548  
                 
Cash and cash equivalents at end of period
   $ 39,792     $ 54,229  
 

 
 
 

SCHEDULE 4
  
                                     
BROWN SHOE COMPANY, INC.
  
RECONCILIATION OF NET EARNINGS AND DILUTED EARNINGS PER SHARE (GAAP BASIS) TO ADJUSTED NET EARNINGS AND DILUTED EARNINGS PER SHARE (NON-GAAP BASIS)
  
                                     
                                     
   
13 Weeks Ended April 28, 2012
  
13 Weeks Ended April 30, 2011
(Thousands, except per share data)
  
Pre-Tax Impact
of Charges/
Other Items
  
Net  Earnings
Attributable to
Brown Shoe
Company, Inc.
  
Diluted Earnings
Per Share
  
Pre-Tax Impact
of Charges/
Other Items
  
Net Earnings
Attributable to
Brown Shoe
Company, Inc.
  
Diluted Earnings
Per Share
                                     
GAAP earnings
         $ 1,695     $ 0.04           $ 3,688     $ 0.08  
                                             
Charges/Other Items:
                                            
Portfolio realignment
                                            
  Business exits and cost reductions
   $ 12,091       7,883       0.18     $ -       -       -  
ASG acquisition and integration-related costs
     675       441       0.01       1,744       1,667       0.04  
ASG cost of good sold adjustment (1)
     -       -       -       2,710       1,604       0.04  
                                                 
   Total charges/other items
   $ 12,766       8,324       0.19     $ 4,454       3,271       0.08  
                                                 
Adjusted earnings
           $ 10,019     $ 0.23             $ 6,959     $ 0.16  
                                                 
                                                 
   
52 Weeks Ended April 28, 2012
  
52 Weeks Ended April 30, 2011
(Thousands, except per share data)
  
Pre-Tax Impact
of Charges/
Other Items
  
Net Earnings
Attributable to
Brown Shoe
Company, Inc.
  
Diluted Earnings
Per Share
  
Pre-Tax Impact
of  Charges/
Other Items
  
Net Earnings
Attributable to
Brown Shoe
Company, Inc.
  
Diluted Earnings
Per Share
                                                 
GAAP earnings
          $ 22,596     $ 0.52             $ 30,875     $ 0.70  
                                                 
Charges/Other Items:
                                                
Portfolio realignment
                                                
  Gain on sale of subsidiary
   $ (20,635 )     (13,965 )     (0.32 )   $ -       -       -  
  Business exits and cost reductions
     31,245       19,919       0.46       -       -       -  
ASG acquisition and integration-related costs
     5,388       3,293       0.07       2,863       2,391       0.05  
ASG cost of goods sold adjustment (1)
     1,479       873       0.02       2,710       1,604       0.04  
Loss on early extinguishment of debt
     1,003       638       0.02       -       -       -  
IT initiatives
     -       -       -       5,078       3,351       0.07  
                                                 
   Total charges/other items
   $ 18,480       10,758       0.25     $ 10,651       7,346       0.16  
                                                 
Adjusted earnings
          $ 33,354     $ 0.77             $ 38,221     $ 0.86  
                                                 
                                                 
(1) In accordance with GAAP, purchase accounting rules require the company to record inventory at fair value (i.e., expected selling price less costs to sell) on the acquisition date. This results in lower than typical gross margins when the acquired inventory is sold. This adjustment reflects the elimination of the unfavorable impact of lower gross margins for ASG product sold in the first and second quarters of 2011.
  

 
 
 

SCHEDULE 5
                                                             
BROWN SHOE COMPANY, INC.
SUMMARY FINANCIAL RESULTS BY SEGMENT
                                                             
                                                             
  SUMMARY FINANCIAL RESULTS                                                  
                                                             
   
Famous Footwear
  
Wholesale Operations
  
Specialty Retail
  
Other
  
Consolidated
   
13 Weeks Ended
  
13 Weeks Ended
  
13 Weeks Ended
  
13 Weeks Ended
  
13 Weeks Ended
   
April 28,
  
April 30,
  
April 28,
  
April 30,
  
April 28,
  
April 30,
  
April 28,
  
April 30,
  
April 28,
  
April 30,
(Thousands)
  
2012
  
2011
  
2012
  
2011
  
2012
  
2011
  
2012
  
2011
  
2012
  
2011
                                                             
Net Sales
  $ 347,107     $ 342,727     $ 223,203     $ 217,064     $ 56,131     $ 59,764     $ -     $ -     $ 626,441     $ 619,555  
                                                                                 
Gross Profit
   $ 155,140     $ 156,634     $ 60,755     $ 65,951     $ 23,169     $ 25,379     $ -     $ -     $ 239,064     $ 247,964  
Adjusted Gross Profit
   $ 155,140     $ 156,634     $ 61,845     $ 68,661     $ 23,390     $ 25,379     $ -     $ -     $ 240,375     $ 250,674  
                                                                                 
Gross Profit Rate
     44.7%       45.7%       27.2%       30.4%       41.3%       42.5%       -       -       38.2%       40.0%  
Adjusted Gross Profit Rate
     44.7%       45.7%       27.7%       31.6%       41.7%       42.5%       -       -       38.4%       40.5%  
                                                                                 
Operating Earnings (Loss)
   $ 18,301     $ 18,782     $ 1,979     $ 6,019     $ (3,527 )   $ (3,744 )   $ (8,058 )   $ (8,977 )   $ 8,695     $ 12,080  
Adjusted Operating Earnings (Loss)
   $ 25,326     $ 18,782     $ 6,275     $ 8,729     $ (2,538 )   $ (3,744 )   $ (7,602 )   $ (7,233 )   $ 21,461     $ 16,534  
                                                                                 
Operating Earnings (Loss) %
     5.3%       5.5%       0.9%       2.8%       (6.3% )     (6.3% )     -       -       1.4%       1.9%  
Adjusted Operating Earnings (Loss) %
     7.3%       5.5%       2.8%       4.0%       (4.5% )     (6.3% )     -       -       3.4%       2.7%  
                                                                                 
Same-store Sales %
     2.5%       (3.9% )     -       -       2.6%       (1.0% )     -       -       -       -  
                                                                                 
Number of Stores
     1,066       1,112       -       -       227       252       -       -       1,293       1,364  
                                                                                 
                                                                                 
                                                                                 
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)                                                   
                                                                                 
   
Famous Footwear
  
Wholesale Operations
  
Specialty Retail
  
Other
  
Consolidated
   
13 Weeks Ended
  
13 Weeks Ended
  
13 Weeks Ended
  
13 Weeks Ended
  
13 Weeks Ended
   
April 28,
  
April 30,
  
April 28,
  
April 30,
  
April 28,
  
April 30,
  
April 28,
  
April 30,
  
April 28,
  
April 30,
(Thousands)
    2012    2011    2012    2011    2012    2011    2012    2011    2012    2011
                                                                                 
Gross Profit
   $ 155,140     $ 156,634     $ 60,755     $ 65,951     $ 23,169     $ 25,379     $ -     $ -     $ 239,064     $ 247,964  
                                                                                 
Charges/Other Items:
                                                                                
Portfolio realignment
                                                                                
  Business exits and cost reductions
     -       -       1,090       -       221       -       -       -       1,311       -  
ASG cost of good sold adjustment
     -       -       -       2,710       -       -       -       -       -       2,710  
                                                                                 
   Total charges/other items
     -       -       1,090       2,710       221       -       -       -       1,311       2,710  
                                                                                 
Adjusted Gross Profit
   $ 155,140     $ 156,634     $ 61,845     $ 68,661     $ 23,390     $ 25,379     $ -     $ -     $ 240,375     $ 250,674  
                                                                                 
                                                                                 
Operating Earnings (Loss)
   $ 18,301     $ 18,782     $ 1,979     $ 6,019     $ (3,527 )   $ (3,744 )   $ (8,058 )   $ (8,977 )   $ 8,695     $ 12,080  
                                                                                 
Charges/Other Items:
                                                                                
Portfolio realignment
                                                                                
  Business exits and cost reductions
     7,025       -       3,621       -       989       -       456       -       12,091       -  
ASG cost of good sold adjustment
     -       -       -       2,710       -       -       -       -       -       2,710  
ASG acquisition and integration-related costs
     -       -       675       -       -       -       -       1,744       675       1,744  
                                                                                 
   Total charges/other items
     7,025       -       4,296       2,710       989       -       456       1,744       12,766       4,454  
                                                                                 
Adjusted Operating Earnings (Loss)
   $ 25,326     $ 18,782     $ 6,275     $ 8,729     $ (2,538 )   $ (3,744 )   $ (7,602 )   $ (7,233 )   $ 21,461     $ 16,534  
 
 
 
 
 
                                                                                 
SCHEDULE 5 - CONTINUED
                                                                                 
BROWN SHOE COMPANY, INC.
SUMMARY FINANCIAL RESULTS BY SEGMENT
                                                                                 
                                                                                 
 SUMMARY FINANCIAL RESULTS                                                                    
                                                                                 
   
Famous Footwear
  
Wholesale Operations
  
Specialty Retail
  
Other
  
Consolidated
   
52 Weeks Ended
  
52 Weeks Ended
  
52 Weeks Ended
  
52 Weeks Ended
  
52 Weeks Ended
   
April 28,
  
April 30,
  
April 28,
  
April 30,
  
April 28,
  
April 30,
  
April 28,
  
April 30,
  
April 28,
  
April 30,
(Thousands)
    2012    2011    2012    2011    2012    2011    2012    2011    2012    2011
                                                                                 
Net Sales
  $ 1,460,694     $ 1,467,095     $ 877,012     $ 796,724     $ 252,004     $ 262,109     $ -     $ -     $ 2,589,710     $ 2,525,928  
                                                                                 
Gross Profit
   $ 633,727     $ 661,494     $ 251,150     $ 231,323     $ 102,863     $ 111,141     $ -     $ -     $ 987,740     $ 1,003,958  
Adjusted Gross Profit
   $ 633,727     $ 661,494     $ 255,276     $ 234,033     $ 103,466     $ 111,141     $ -     $ -     $ 992,469     $ 1,006,668  
                                                                                 
Gross Profit Rate
     43.4%       45.1%       28.6%       29.0%       40.8%       42.4%       -       -       38.1%       39.7%  
Adjusted Gross Profit Rate
     43.4%       45.1%       29.1%       29.4%       41.1%       42.4%       -       -       38.3%       39.9%  
                                                                                 
Operating Earnings (Loss)
   $ 62,034     $ 81,018     $ 12,699     $ 29,567     $ (7,410 )   $ (6,805 )   $ (35,158 )   $ (40,364 )   $ 32,165     $ 63,416  
Adjusted Operating Earnings (Loss)
   $ 71,811     $ 81,018     $ 33,014     $ 32,808     $ (5,428 )   $ (6,805 )   $ (29,120 )   $ (32,954 )   $ 70,277     $ 74,067  
                                                                                 
Operating Earnings (Loss) %
     4.2%       5.5%       1.4%       3.7%       (2.9% )     (2.6% )     -       -       1.2%       2.5%  
Adjusted Operating Earnings (Loss) %
     4.9%       5.5%       3.8%       4.1%       (2.2% )     (2.6% )     -       -       2.7%       2.9%  
                                                                                 
Same-store Sales %
     0.3%       5.7%       -       -       2.6%       2.8%       -       -       -       -  
                                                                                 
Number of Stores
     1,066       1,112       -       -       227       252       -       -       1,293       1,364  
                                                                                 
                                                                                 
                                                                                 
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)                                                   
                                                                                 
   
Famous Footwear
    
Wholesale Operations
  
Specialty Retail
  
Other
  
Consolidated
   
52 Weeks Ended
    
52 Weeks Ended
  
52 Weeks Ended
  
52 Weeks Ended
  
52 Weeks Ended
   
April 28,
  
April 30,
  
April 28,
  
April 30,
  
April 28,
  
April 30,
  
April 28,
  
April 30,
  
April 28,
  
April 30,
(Thousands)
    2012    2011    2012    2011    2012    2011    2012    2011    2012    2011
                                                                                 
Gross Profit
   $ 633,727     $ 661,494     $ 251,150     $ 231,323     $ 102,863     $ 111,141     $ -     $ -     $ 987,740     $ 1,003,958  
                                                                                 
Charges/Other Items:
                                                                                
Portfolio realignment
                                                                                
  Business exits and cost reductions
     -       -       2,647       -       603       -       -       -       3,250       -  
ASG cost of good sold adjustment
     -       -       1,479       2,710       -       -       -       -       1,479       2,710  
                                                                                 
   Total charges/other items
     -       -       4,126       2,710       603       -       -       -       4,729       2,710  
                                                                                 
Adjusted Gross Profit
   $ 633,727     $ 661,494     $ 255,276     $ 234,033     $ 103,466     $ 111,141     $ -     $ -     $ 992,469     $ 1,006,668  
                                                                                 
                                                                                 
Operating Earnings (Loss)
   $ 62,034     $ 81,018     $ 12,699     $ 29,567     $ (7,410 )   $ (6,805 )   $ (35,158 )   $ (40,364 )   $ 32,165     $ 63,416  
                                                                                 
Charges/Other Items:
                                                                                
Portfolio realignment
                                                                                
  Business exits and cost reductions
     9,777       -       15,668       -       1,982       -       3,818       -       31,245       -  
ASG cost of good sold adjustment
     -       -       1,479       2,710       -       -       -       -       1,479       2,710  
ASG acquisition and integration-related costs
     -       -       3,168       -       -       -       2,220       2,863       5,388       2,863  
IT Initiatives
     -       -       -       531       -       -       -       4,547       -       5,078  
                                                                                 
   Total charges/other items
     9,777       -       20,315       3,241       1,982       -       6,038       7,410       38,112       10,651  
                                                                                 
Adjusted Operating Earnings (Loss)
   $ 71,811     $ 81,018     $ 33,014     $ 32,808     $ (5,428 )   $ (6,805 )   $ (29,120 )   $ (32,954 )   $ 70,277     $ 74,067  

 
 
 

SCHEDULE 5 - CONTINUED
  
                                                             
BROWN SHOE COMPANY, INC.
  
SUMMARY FINANCIAL RESULTS BY SEGMENT
  
                                                             
                                                             
 SUMMARY FINANCIAL RESULTS                                                  
                                                             
   
Famous Footwear
  
Wholesale Operations
  
Specialty Retail
  
Other
  
Consolidated
   
13 Weeks
Ended
  
26 Weeks
Ended
  
13 Weeks
Ended
  
26 Weeks
Ended
  
13 Weeks
Ended
  
26 Weeks
Ended
  
13 Weeks
Ended
  
26 Weeks
Ended
  
13 Weeks
Ended
  
26 Weeks
Ended
   
July 30,
  
July 30,
  
July 30,
  
July 30,
  
July 30,
  
July 30,
  
July 30,
  
July 30,
  
July 30,
  
July 30,
(Thousands)
  
2011
  
2011
  
2011
  
2011
  
2011
  
2011
  
2011
  
2011
  
2011
  
2011
                                                             
Net Sales
  $ 344,930     $ 687,657     $ 215,117     $ 432,181     $ 60,543     $ 120,307     $ -     $ -     $ 620,590     $ 1,240,145  
                                                                                 
Gross Profit
   $ 148,995     $ 305,629     $ 60,414     $ 126,365     $ 24,196     $ 49,575     $ -     $ -     $ 233,605     $ 481,569  
Adjusted Gross Profit
   $ 148,995     $ 305,629     $ 61,893     $ 130,554     $ 24,196     $ 49,575     $ -     $ -     $ 235,084     $ 485,758  
                                                                                 
Gross Profit Rate
     43.2%       44.4%       28.1%       29.2%       40.0%       41.2%       -       -       37.6%       38.8%  
Adjusted Gross Profit Rate
     43.2%       44.4%       28.8%       30.2%       40.0%       41.2%       -       -       37.9%       39.2%  
                                                                                 
Operating Earnings (Loss)
   $ 7,495     $ 26,277     $ 2,925     $ 8,944     $ (3,012 )   $ (6,756 )   $ (8,406 )   $ (17,383 )   $ (998 )   $ 11,082  
Adjusted Operating Earnings (Loss)
   $ 7,495     $ 26,277     $ 4,404     $ 13,133     $ (3,012 )   $ (6,756 )   $ (7,717 )   $ (14,950 )   $ 1,170     $ 17,704  
                                                                                 
Operating Earnings (Loss) %
     2.2%       3.8%       1.4%       2.1%       (5.0% )     (5.6% )     -       -       (0.2% )     0.9%  
Adjusted Operating Earnings (Loss) %
     2.2%       3.8%       2.0%       3.0%       (5.0% )     (5.6% )     -       -       0.2%       1.4%  
                                                                                 
Same-store Sales %
     0.2%       (1.9% )     -       -       5.2%       2.1%       -       -       -       -  
                                                                                 
Number of Stores
     1,116       1,116       -       -       245       245       -       -       1,361       1,361  
                                                                                 
                                                                                 
                                                                                 
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)                                                   
                                                                                 
   
Famous Footwear
  
Wholesale Operations
  
Specialty Retail
  
Other
  
Consolidated
   
13 Weeks
Ended
  
26 Weeks
Ended
  
13 Weeks
Ended
  
26 Weeks
Ended
  
13 Weeks
Ended
  
26 Weeks
Ended
  
13 Weeks
Ended
  
26 Weeks
Ended
  
13 Weeks
Ended
  
26 Weeks
Ended
   
July 30,
  
July 30,
  
July 30,
  
July 30,
  
July 30,
  
July 30,
  
July 30,
  
July 30,
  
July 30,
  
July 30,
(Thousands)
    2011    2011    2011    2011    2011    2011    2011    2011    2011    2011
                                                                                 
Gross Profit
   $ 148,995     $ 305,629     $ 60,414     $ 126,365     $ 24,196     $ 49,575     $ -     $ -     $ 233,605     $ 481,569  
                                                                                 
Charges/Other Items:
                                                                                
ASG cost of good sold adjustment
     -       -       1,479       4,189       -       -       -       -       1,479       4,189  
                                                                                 
   Total charges/other items
     -       -       1,479       4,189       -       -       -       -       1,479       4,189  
                                                                                 
Adjusted Gross Profit
   $ 148,995     $ 305,629     $ 61,893     $ 130,554     $ 24,196     $ 49,575     $ -     $ -     $ 235,084     $ 485,758  
                                                                                 
                                                                                 
Operating Earnings (Loss)
   $ 7,495     $ 26,277     $ 2,925     $ 8,944     $ (3,012 )   $ (6,756 )   $ (8,406 )   $ (17,383 )   $ (998 )   $ 11,082  
                                                                                 
Charges/Other Items:
                                                                                
ASG cost of good sold adjustment
     -       -       1,479       4,189       -       -       -       -       1,479       4,189  
ASG acquisition and integration-related costs
     -       -       -       -       -       -       689       2,433       689       2,433  
                                                                                 
   Total charges/other items
     -       -       1,479       4,189       -       -       689       2,433       2,168       6,622  
                                                                                 
Adjusted Operating Earnings (Loss)
   $ 7,495     $ 26,277     $ 4,404     $ 13,133     $ (3,012 )   $ (6,756 )   $ (7,717 )   $ (14,950 )   $ 1,170     $ 17,704  
 
 
 
 
 
SCHEDULE 5 - CONTINUED
                                                                                 
BROWN SHOE COMPANY, INC.
SUMMARY FINANCIAL RESULTS BY SEGMENT
                                                                                 
                                                                                 
 SUMMARY FINANCIAL RESULTS                                                                    
                                                                                 
   
Famous Footwear
  
Wholesale Operations
  
Specialty Retail
  
Other
  
Consolidated
   
13 Weeks
Ended
  
39 Weeks
Ended
  
13 Weeks
Ended
  
39 Weeks
Ended
  
13 Weeks
Ended
  
39 Weeks
Ended
  
13 Weeks
Ended
  
39 Weeks
Ended
  
13 Weeks
Ended
  
39 Weeks
Ended
   
October 29,
  
October 29,
  
October 29,
  
October 29,
  
October 29,
  
October 29,
  
October 29,
  
October 29,
  
October 29,
  
October 29,
(Thousands)
    2011    2011    2011    2011    2011    2011    2011    2011    2011    2011
                                                                                 
Net Sales
  $ 416,243     $ 1,103,900     $ 233,590     $ 665,771     $ 63,955     $ 184,262     $ -     $ -     $ 713,788     $ 1,953,933  
                                                                                 
Gross Profit
   $ 178,323     $ 483,952     $ 70,295     $ 196,660     $ 27,880     $ 77,455     $ -     $ -     $ 276,498     $ 758,067  
Adjusted Gross Profit
   $ 178,323     $ 483,952     $ 71,192     $ 201,746     $ 27,880     $ 77,455     $ -     $ -     $ 277,395     $ 763,153  
                                                                                 
Gross Profit Rate
     42.8%       43.8%       30.1%       29.5%       43.6%       42.0%       -       -       38.7%       38.8%  
Adjusted Gross Profit Rate
     42.8%       43.8%       30.5%       30.3%       43.6%       42.0%       -       -       38.9%       39.1%  
                                                                                 
Operating Earnings (Loss)
   $ 28,374     $ 54,651     $ 9,558     $ 18,502     $ 53     $ (6,703 )   $ (5,624 )   $ (23,007 )   $ 32,361     $ 43,443  
Adjusted Operating Earnings (Loss)
   $ 28,374     $ 54,651     $ 14,063     $ 27,196     $ 53     $ (6,703 )   $ (4,517 )   $ (19,467 )   $ 37,973     $ 55,677  
                                                                                 
Operating Earnings (Loss) %
     6.8%       5.0%       4.1%       2.8%       0.1%       (3.6% )     -       -       4.5%       2.2%  
Adjusted Operating Earnings (Loss) %
     6.8%       5.0%       6.0%       4.1%       0.1%       (3.6% )     -       -       5.3%       2.8%  
                                                                                 
Same-store Sales %
     (0.4% )     (1.3% )     -       -       (1.9% )     0.7%       -       -       -       -  
                                                                                 
Number of Stores
     1,121       1,121       -       -       242       242       -       -       1,363       1,363  
                                                                                 
                                                                                 
                                                                                 
 RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)                                                  
                                                                                 
   
Famous Footwear
  
Wholesale Operations
  
Specialty Retail
  
Other
  
Consolidated
   
13 Weeks
Ended
  
39 Weeks
Ended
  
13 Weeks
Ended
  
39 Weeks
Ended
  
13 Weeks
Ended
  
39 Weeks
Ended
  
13 Weeks
Ended
  
39 Weeks
Ended
  
13 Weeks
Ended
  
39 Weeks
Ended
   
October 29,
  
October 29,
  
October 29,
  
October 29,
  
October 29,
  
October 29,
  
October 29,
  
October 29,
  
October 29,
  
October 29,
(Thousands)
    2011    2011    2011    2011    2011    2011    2011    2011    2011    2011
                                                                                 
Gross Profit
   $ 178,323     $ 483,952     $ 70,295     $ 196,660     $ 27,880     $ 77,455     $ -     $ -     $ 276,498     $ 758,067  
                                                                                 
Charges/Other Items:
                                                                                
Portfolio realignment
                                                                                
  Business exits and cost reductions
     -       -       897       897       -       -       -       -       897       897  
ASG cost of good sold adjustment
     -       -       -       4,189       -       -       -       -       -       4,189  
                                                                                 
   Total charges/other items
     -       -       897       5,086       -       -       -       -       897       5,086  
                                                                                 
Adjusted Gross Profit
   $ 178,323     $ 483,952     $ 71,192     $ 201,746     $ 27,880     $ 77,455     $ -     $ -     $ 277,395     $ 763,153  
                                                                                 
                                                                                 
Operating Earnings (Loss)
   $ 28,374     $ 54,651     $ 9,558     $ 18,502     $ 53     $ (6,703 )   $ (5,624 )   $ (23,007 )   $ 32,361     $ 43,443  
                                                                                 
Charges/Other Items:
                                                                                
Portfolio realignment
                                                                                
  Business exits and cost reductions
     -       -       4,505       4,505       -       -       -       -       4,505       4,505  
ASG cost of good sold adjustment
     -       -       -       4,189       -       -       -       -       -       4,189  
ASG acquisition and integration-related costs
     -       -       -       -       -       -       1,107       3,540       1,107       3,540  
                                                                                 
   Total charges/other items
     -       -       4,505       8,694       -       -       1,107       3,540       5,612       12,234  
                                                                                 
Adjusted Operating Earnings (Loss)
   $ 28,374     $ 54,651     $ 14,063     $ 27,196     $ 53     $ (6,703 )   $ (4,517 )   $ (19,467 )   $ 37,973     $ 55,677  
 
 
 
 
 
 
SCHEDULE 5 - CONTINUED
                                                                                 
BROWN SHOE COMPANY, INC.
SUMMARY FINANCIAL RESULTS BY SEGMENT
                                                                                 
                                                                                 
SUMMARY FINANCIAL RESULTS
                                                                  
                                                                                 
   
Famous Footwear
  
Wholesale Operations
  
Specialty Retail
  
Other
  
Consolidated
   
13 Weeks
Ended
  
52 Weeks
Ended
  
13 Weeks
Ended
  
52 Weeks
Ended
  
13 Weeks
Ended
  
52 Weeks
Ended
  
13 Weeks
Ended
  
52 Weeks
Ended
  
13 Weeks
Ended
  
52 Weeks
Ended
   
January 28,
  
January 28,
  
January 28,
  
January 28,
  
January 28,
  
January 28,
  
January 28,
  
January 28,
  
January 28,
  
January 28,
(Thousands)
    2012    2012    2012    2012    2012    2012    2012    2012    2012    2012
                                                                                 
Net Sales
  $ 352,414     $ 1,456,314     $ 205,102     $ 870,873     $ 71,375     $ 255,637     $ -     $ -     $ 628,891     $ 2,582,824  
                                                                                 
Gross Profit
   $ 151,269     $ 635,221     $ 59,686     $ 256,346     $ 27,618     $ 105,073     $ -     $ -     $ 238,573     $ 996,640  
Adjusted Gross Profit
   $ 151,269     $ 635,221     $ 60,346     $ 262,092     $ 28,000     $ 105,455     $ -     $ -     $ 239,615     $ 1,002,768  
                                                                                 
Gross Profit Rate
     42.9%       43.6%       29.1%       29.4%       38.7%       41.1%       -       -       37.9%       38.6%  
Adjusted Gross Profit Rate
     42.9%       43.6%       29.4%       30.1%       39.2%       41.3%       -       -       38.1%       38.8%  
                                                                                 
Operating Earnings (Loss)
   $ 7,864     $ 62,515     $ (1,763 )   $ 16,739     $ (924 )   $ (7,627 )   $ (13,070 )   $ (36,077 )   $ (7,893 )   $ 35,550  
Adjusted Operating Earnings (Loss)
   $ 10,616     $ 65,267     $ 8,272     $ 35,468     $ 69     $ (6,634 )   $ (9,284 )   $ (28,751 )   $ 9,673     $ 65,350  
                                                                                 
Operating Earnings (Loss) %
     2.2%       4.3%       (0.9% )     1.9%       (1.3% )     (3.0% )     -       -       (1.3% )     1.4%  
Adjusted Operating Earnings (Loss) %
     3.0%       4.5%       4.0%       4.1%       0.1%       (2.6% )     -       -       1.5%       2.5%  
                                                                                 
Same-store Sales %
     (0.8% )     (1.2% )     -       -       4.7%       1.7%       -       -       -       -  
                                                                                 
Number of Stores
     1,089       1,089       -       -       234       234       -       -       1,323       1,323  
                                                                                 
                                                                                 
                                                                                 
 
RECONCILIATION OF ADJUSTED RESULTS (NON-GAAP)
                                                  
                                                                                 
   
Famous Footwear
    
Wholesale Operations
    
Specialty Retail
    
Other
            
Consolidated
  
   
13 Weeks
Ended
  
52 Weeks
Ended
  
13 Weeks
Ended
  
52 Weeks
Ended
  
13 Weeks
Ended
  
52 Weeks
Ended
  
13 Weeks
Ended
  
52 Weeks
Ended
  
13 Weeks
Ended
  
52 Weeks
Ended
   
January 28,
  
January 28,
  
January 28,
  
January 28,
  
January 28,
  
January 28,
  
January 28,
  
January 28,
  
January 28,
  
January 28,
(Thousands)
    2012    2012    2012    2012    2012    2012    2012    2012    2012    2012
                                                                                 
Gross Profit
   $ 151,269     $ 635,221     $ 59,686     $ 256,346     $ 27,618     $ 105,073     $ -     $ -     $ 238,573     $ 996,640  
                                                                                 
Charges/Other Items:
                                                                                
Portfolio realignment
                                                                                
  Business exits and cost reductions
     -       -       660       1,557       382       382       -       -       1,042       1,939  
ASG cost of good sold adjustment
    -       -       -       4,189       -       -       -       -       -       4,189  
                                                                                 
   Total charges/other items
     -       -       660       5,746       382       382       -       -       1,042       6,128  
                                                                                 
Adjusted Gross Profit
   $ 151,269     $ 635,221     $ 60,346     $ 262,092     $ 28,000     $ 105,455     $ -     $ -     $ 239,615     $ 1,002,768  
                                                                                 
                                                                                 
Operating Earnings (Loss)
   $ 7,864     $ 62,515     $ (1,763 )   $ 16,739     $ (924 )   $ (7,627 )   $ (13,070 )   $ (36,077 )   $ (7,893 )   $ 35,550  
                                                                                 
Charges/Other Items:
                                                                                
Portfolio realignment
                                                                                
  Business exits and cost reductions
     2,752       2,752       7,542       12,047       993       993       3,362       3,362       14,649       19,154  
ASG cost of good sold adjustment
     -       -       -       4,189       -       -       -       -       -       4,189  
ASG acquisition and integration-related costs
     -       -       2,493       2,493       -       -       424       3,964       2,917       6,457  
                                                                                 
   Total charges/other items
     2,752       2,752       10,035       18,729       993       993       3,786       7,326       17,566       29,800  
                                                                                 
Adjusted Operating Earnings (Loss)
   $ 10,616     $ 65,267     $ 8,272     $ 35,468     $ 69     $ (6,634 )   $ (9,284 )   $ (28,751 )   $ 9,673     $ 65,350  
 

 
 
 

SCHEDULE 6
  
                         
BROWN SHOE COMPANY, INC.
  
BASIC AND DILUTED EARNINGS PER SHARE RECONCILIATION
                         
                         
   
13 Weeks Ended
  
52 Weeks Ended
   
April 28,
  
April 30,
  
April 28,
  
April 30,
(Thousands, except per share amounts)
  
2012
  
2011
  
2012
  
2011
                         
Net earnings attributable to Brown Shoe Company, Inc.:
                        
   Net earnings from continuing operations
   $ 1,628     $ 3,348     $ 7,004     $ 29,873  
   Net loss attributable to noncontrolling interests
     67       47       219       709  
   Net earnings allocated to participating securities
     (155 )     (138 )     (340 )     (1,098 )
Net earnings from continuing operations
     1,540       3,257       6,883       29,484  
                                 
   Net earnings from discontinued operations
     -       293       15,373       293  
   Net earnings allocated to participating securities
     -       (11 )     (702 )     (10 )
Net earnings from discontinued operations
     -       282       14,671       283  
                                 
Net earnings attributable to Brown Shoe Company, Inc. after allocation of earnings to participating securities
   $ 1,540     $ 3,539     $ 21,554     $ 29,767  
                                 
                                 
Basic and diluted common shares attributable to Brown Shoe Company, Inc.:
                                
Basic common shares for continuing operations and discontinued operations
     40,422       42,475       40,613       42,336  
   Dilutive effect of share-based awards for continuing operations and discontinued operations
     322       531       480       363  
Diluted common shares for continuing operations and discontinued operations attributable to Brown Shoe Company, Inc.
     40,744       43,006       41,093       42,699  
                                 
Basic earnings per share:
                                
   From continuing operations
   $ 0.04     $ 0.08     $ 0.17     $ 0.69  
   From discontinued operations
     -       -       0.36       0.01  
Basic earnings per common share attributable to Brown Shoe Company, Inc. shareholders
   $ 0.04     $ 0.08     $ 0.53     $ 0.70  
                                 
Diluted earnings per share:
                                
   From continuing operations
   $ 0.04     $ 0.08     $ 0.16     $ 0.69  
   From discontinued operations
     -       -       0.36       0.01  
Diluted earnings per common share attributable to Brown Shoe Company, Inc. shareholders
   $ 0.04     $ 0.08     $ 0.52     $ 0.70  
 

 
 
 

SCHEDULE 7
  
                   
BROWN SHOE COMPANY, INC.
  
ADJUSTMENTS TO FIRST QUARTER 2011 RESULTS FOR DISCONTINUED OPERATIONS
  
                   
                   
   
13 Weeks Ended
(Thousands)
  
 
Previously
Reported 
April 30, 2011
  
Adjustments
for
Discontinued
Operations
  
 
 
 
April 30, 2011
                   
Net sales
   $ 624,620     $ (5,065 )   $ 619,555  
Cost of goods sold
     374,820       (3,229 )     371,591  
                         
Gross profit
     249,800       (1,836 )     247,964  
                         
Selling and administrative expenses
     235,468       (1,328 )     234,140  
Restructuring and other special charges, net
     1,744       -       1,744  
                         
Operating earnings
    12,588       (508 )     12,080  
                         
Interest expense
     (6,698 )     -       (6,698 )
Interest income
     85       -       85  
                         
Earnings from continuing operations before income taxes
    5,975       (508 )     5,467  
                         
Income tax provision
     (2,334 )     215       (2,119 )
                         
Net earnings from continuing operations
     3,641       (293 )     3,348  
                         
Net earnings from discontinued operations
     -       293       293  
                         
Net earnings
     3,641       -       3,641  
                         
   Net loss attributable to noncontrolling interests
     (47 )     -       (47 )
                         
Net earnings attributable to Brown Shoe Company, Inc.
   $ 3,688     $ -     $ 3,688  
                         
Note: During the third quarter of 2011, we sold a subsidiary. The sale required presentation as discontinued operations, resulting in subsequent revisions to previously issued results. The above schedule presents the impact of presenting the operations of the sold subsidiary as discontinued operations.
  
 

 
 
 

SCHEDULE 7 - CONTINUED
  
                                     
BROWN SHOE COMPANY, INC.
  
ADJUSTMENTS TO SECOND QUARTER 2011 RESULTS FOR DISCONTINUED OPERATIONS
                                     
                                     
   
13 Weeks Ended
  
26 Weeks Ended
(Thousands)
  
Previously
Reported 
July 30, 2011
    
Adjustments
for Discontinued Operations
    
July 30, 2011
  
Previously
Reported 
July 30, 2011
    
Adjustments
for Discontinued Operations
    
July 30, 2011
                                     
Net sales
   $ 628,128     $ (7,538 )   $ 620,590     $ 1,252,748     $ (12,603 )   $ 1,240,145  
Cost of goods sold
     391,583       (4,598 )     386,985       766,403       (7,827 )     758,576  
                                                 
Gross profit
     236,545       (2,940 )     233,605       486,345       (4,776 )     481,569  
                                                 
Selling and administrative expenses
     235,696       (1,782 )     233,914       471,164       (3,110 )     468,054  
Restructuring and other special charges, net
     689       -       689       2,433       -       2,433  
                                                 
Operating earnings (loss)
     160       (1,158 )     (998 )     12,748       (1,666 )     11,082  
                                                 
Interest expense
     (6,520 )     -       (6,520 )     (13,218 )     -       (13,218 )
Loss on early extinguishment of debt
     (1,003 )     -       (1,003 )     (1,003 )     -       (1,003 )
Interest income
     65       -       65       150       -       150  
                                                 
Loss from continuing operations before income taxes
    (7,298 )     (1,158 )     (8,456 )     (1,323 )     (1,666 )     (2,989 )
                                                 
Income tax benefit
     2,530       475       3,005       196       690       886  
                                                 
Net loss from continuing operations
     (4,768 )     (683 )     (5,451 )     (1,127 )     (976 )     (2,103 )
                                                 
Net earnings from discontinued operations
     -       683       683       -       976       976  
                                                 
Net loss
     (4,768 )     -       (4,768 )     (1,127 )     -       (1,127 )
                                                 
   Net loss attributable to noncontrolling interests
     (159 )     -       (159 )     (206 )     -       (206 )
                                                 
Net loss attributable to Brown Shoe Company, Inc.
   $ (4,609 )   $ -     $ (4,609 )   $ (921 )   $ -     $ (921 )
                                                 
Note: During the third quarter of 2011, we sold a subsidiary. The sale required presentation as discontinued operations, resulting in subsequent revisions to previously issued results. The above schedule presents the impact of presenting the operations of the sold subsidiary as discontinued operations.