1-2191 (Commission File Number) | 43-0197190 (IRS Employer Identification Number) |
8300 Maryland Avenue St. Louis, Missouri (Address of principal executive offices) | 63105 (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(c) | Exhibit | |
99.1 | Press Release issued May 27, 2015 | |
BROWN SHOE COMPANY, INC. | ||
(Registrant) | ||
Date: May 27, 2015 | /s/ Michael I. Oberlander | |
Michael I. Oberlander | ||
Senior Vice President, General Counsel and Corporate Secretary |
Exhibit Number | Description | |
99.1 | Press Release dated May 27, 2015 |
Investor and Media Contact: | |
Peggy Reilly Tharp, Brown Shoe Company | |
(314) 854-4134, ptharp@brownshoe.com |
US$M, except per share (unaudited) | 1Q’15 | 1Q’14 | 1Q Change |
Consolidated net sales | $602.3 | $591.2 | 1.9% |
Famous Footwear | 360.0 | 366.7 | (1.8%) |
Brand Portfolio | 242.3 | 224.4 | 7.9% |
Gross profit | 248.5 | 242.3 | 2.6% |
Margin | 41.3% | 41.0% | 30 bps |
SG&A | 218.2 | 213.6 | 2.1% |
% of net sales | 36.3% | 36.1% | 20 bps |
Operating earnings | 30.3 | 28.7 | 5.6% |
Margin | 5.0% | 4.9% | 10 bps |
Net interest expense | 4.1 | 5.2 | (20.5%) |
Earnings before income taxes | 26.2 | 23.5 | 11.4% |
Tax rate | 25.9% | 34.1% | (820 bps) |
Net earnings | $19.3 | $15.4 | 24.8% |
Per diluted share | $0.44 | $0.35 | 25.7% |
Guidance Metric | FY’15 |
Consolidated net sales | $2.61 to $2.63 billion |
Famous Footwear same-store sales | Up low-single digits |
Famous Footwear reported sales | Flat, due to sale of Shoes.com |
Brand Portfolio sales | Up mid-single digits |
Gross margin | Up approximately 15 bps |
SG&A | Less than or equal to 35.4% of sales |
Net interest expense | ~$18 million |
Effective tax rate | 30% to 33% |
Earnings per diluted share | $1.84 to $1.94 |
Depreciation and amortization | ~$53 million |
Capital expenditures | ~$75 million |
SCHEDULE 1 | ||||||
BROWN SHOE COMPANY, INC. | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | ||||||
(Unaudited) | ||||||
Thirteen Weeks Ended | ||||||
(Thousands, except per share data) | May 2, 2015 | May 3, 2014 | ||||
Net sales | $ | 602,283 | $ | 591,162 | ||
Cost of goods sold | 353,757 | 348,821 | ||||
Gross profit | 248,526 | 242,341 | ||||
Selling and administrative expenses | 218,190 | 213,615 | ||||
Operating earnings | 30,336 | 28,726 | ||||
Interest expense | (4,463 | ) | (5,306 | ) | ||
Interest income | 304 | 76 | ||||
Earnings before income taxes | 26,177 | 23,496 | ||||
Income tax provision | (6,786 | ) | (8,020 | ) | ||
Net earnings | 19,391 | 15,476 | ||||
Net earnings attributable to noncontrolling interests | 130 | 47 | ||||
Net earnings attributable to Brown Shoe Company, Inc. | $ | 19,261 | $ | 15,429 | ||
Basic earnings per common share attributable to Brown Shoe Company, Inc. shareholders | $ | 0.44 | $ | 0.35 | ||
Diluted earnings per common share attributable to Brown Shoe Company, Inc. shareholders | $ | 0.44 | $ | 0.35 | ||
Basic number of shares | 42,313 | 41,887 | ||||
Diluted number of shares | 42,458 | 42,116 |
SCHEDULE 2 | |||||||||
BROWN SHOE COMPANY, INC. | |||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(Unaudited) | |||||||||
May 2, 2015 | May 3, 2014 | January 31, 2015 | |||||||
(Thousands) | |||||||||
ASSETS | |||||||||
Cash and cash equivalents | $ | 66,330 | $ | 36,668 | $ | 67,403 | |||
Receivables, net | 126,512 | 105,746 | 136,646 | ||||||
Inventories, net | 498,513 | 512,811 | 543,103 | ||||||
Prepaid expenses and other current assets | 41,003 | 37,913 | 43,744 | ||||||
Total current assets | 732,358 | 693,138 | 790,896 | ||||||
Property and equipment, net | 153,350 | 141,818 | 149,743 | ||||||
Goodwill and intangible assets, net | 133,657 | 137,750 | 134,587 | ||||||
Other assets | 144,309 | 136,256 | 141,586 | ||||||
Total assets | $ | 1,163,674 | $ | 1,108,962 | $ | 1,216,812 | |||
LIABILITIES AND EQUITY | |||||||||
Trade accounts payable | $ | 172,116 | $ | 195,703 | $ | 215,921 | |||
Other accrued expenses | 158,700 | 141,718 | 181,162 | ||||||
Total current liabilities | 330,816 | 337,421 | 397,083 | ||||||
Long-term debt | 199,244 | 199,057 | 199,197 | ||||||
Deferred rent | 41,441 | 37,368 | 39,742 | ||||||
Other liabilities | 37,853 | 42,345 | 39,168 | ||||||
Total other liabilities | 278,538 | 278,770 | 278,107 | ||||||
Total Brown Shoe Company, Inc. shareholders’ equity | 553,474 | 492,073 | 540,910 | ||||||
Noncontrolling interests | 846 | 698 | 712 | ||||||
Total equity | 554,320 | 492,771 | 541,622 | ||||||
Total liabilities and equity | $ | 1,163,674 | $ | 1,108,962 | $ | 1,216,812 |
SCHEDULE 3 | ||||||
BROWN SHOE COMPANY, INC. | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
(Unaudited) | ||||||
Thirteen Weeks Ended | ||||||
(Thousands) | May 2, 2015 | May 3, 2014 | ||||
OPERATING ACTIVITIES: | ||||||
Net cash provided by operating activities | $ | 21,914 | $ | 36,383 | ||
INVESTING ACTIVITIES: | ||||||
Capital expenditures | (13,860 | ) | (8,626 | ) | ||
Acquisition of trademarks | — | (65,065 | ) | |||
Net cash used for investing activities | (13,860 | ) | (73,691 | ) | ||
FINANCING ACTIVITIES: | ||||||
Borrowings under revolving credit agreement | 86,000 | 251,000 | ||||
Repayments under revolving credit agreement | (86,000 | ) | (258,000 | ) | ||
Dividends paid | (3,073 | ) | (3,053 | ) | ||
Acquisition of treasury stock | (4,921 | ) | — | |||
Issuance of common stock under share-based plans, net | (3,751 | ) | (803 | ) | ||
Tax benefit related to share-based plans | 2,401 | 1,769 | ||||
Net cash used for financing activities | (9,344 | ) | (9,087 | ) | ||
Effect of exchange rate changes on cash and cash equivalents | 217 | 517 | ||||
Decrease in cash and cash equivalents | (1,073 | ) | (45,878 | ) | ||
Cash and cash equivalents at beginning of period | 67,403 | 82,546 | ||||
Cash and cash equivalents at end of period | $ | 66,330 | $ | 36,668 |
SCHEDULE 4 | ||||||||||||||||||||||||
BROWN SHOE COMPANY, INC. | ||||||||||||||||||||||||
SUMMARY FINANCIAL RESULTS BY SEGMENT | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
SUMMARY FINANCIAL RESULTS | ||||||||||||||||||||||||
Thirteen Weeks Ended | ||||||||||||||||||||||||
Famous Footwear | Brand Portfolio | Other | Consolidated | |||||||||||||||||||||
(Thousands) | May 2, 2015 | May 3, 2014 | May 2, 2015 | May 3, 2014 | May 2, 2015 | May 3, 2014 | May 2, 2015 | May 3, 2014 | ||||||||||||||||
Net Sales | $ | 360,020 | $ | 366,726 | $ | 242,263 | $ | 224,436 | $ | — | $ | — | $ | 602,283 | $ | 591,162 | ||||||||
Gross Profit | $ | 168,214 | $ | 165,362 | $ | 80,312 | $ | 76,979 | $ | — | $ | — | $ | 248,526 | $ | 242,341 | ||||||||
Gross Profit Rate | 46.7 | % | 45.1 | % | 33.2 | % | 34.3 | % | — | % | — | % | 41.3 | % | 41.0 | % | ||||||||
Operating Earnings (Loss) | $ | 27,960 | $ | 26,730 | $ | 11,060 | $ | 11,203 | $ | (8,684 | ) | $ | (9,207 | ) | $ | 30,336 | $ | 28,726 | ||||||
Operating Earnings % | 7.8 | % | 7.3 | % | 4.6 | % | 5.0 | % | — | % | — | % | 5.0 | % | 4.9 | % | ||||||||
Same-store Sales % (on a 13-week basis) | 3.1 | % | 1.3 | % | (2.5 | )% | (5.6 | )% | — | % | — | % | — | % | — | % | ||||||||
Number of Stores | 1,040 | 1,034 | 165 | 172 | — | — | 1,205 | 1,206 |
SCHEDULE 5 | ||||||
BROWN SHOE COMPANY, INC. | ||||||
BASIC AND DILUTED EARNINGS PER SHARE RECONCILIATION | ||||||
(Unaudited) | ||||||
Thirteen Weeks Ended | ||||||
(Thousands, except per share data) | May 2, 2015 | May 3, 2014 | ||||
Net earnings attributable to Brown Shoe Company, Inc.: | ||||||
Net earnings | $ | 19,391 | $ | 15,476 | ||
Net earnings attributable to noncontrolling interests | (130 | ) | (47 | ) | ||
Net earnings allocated to participating securities | (654 | ) | (592 | ) | ||
Net earnings attributable to Brown Shoe Company, Inc. after allocation of earnings to participating securities | $ | 18,607 | $ | 14,837 | ||
Basic and diluted common shares attributable to Brown Shoe Company, Inc.: | ||||||
Basic common shares | 42,313 | 41,887 | ||||
Dilutive effect of share-based awards | 145 | 229 | ||||
Diluted common shares attributable to Brown Shoe Company, Inc. | 42,458 | 42,116 | ||||
Basic earnings per common share attributable to Brown Shoe Company, Inc. shareholders | $ | 0.44 | $ | 0.35 | ||
Diluted earnings per common share attributable to Brown Shoe Company, Inc. shareholders | $ | 0.44 | $ | 0.35 |