-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TDJ7W94c2Ef9CrMGdrVYfUw1LmOOQOdPgdhvNhd+SfbfniVRZ7G29QtlktSXk6Bk hVp8osDDAmBlI6NTxKn+fw== 0000094887-04-000016.txt : 20040115 0000094887-04-000016.hdr.sgml : 20040115 20040115094456 ACCESSION NUMBER: 0000094887-04-000016 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031128 ITEM INFORMATION: FILED AS OF DATE: 20040115 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STRIDE RITE CORP CENTRAL INDEX KEY: 0000094887 STANDARD INDUSTRIAL CLASSIFICATION: FOOTWEAR, (NO RUBBER) [3140] IRS NUMBER: 041399290 STATE OF INCORPORATION: MA FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-04404 FILM NUMBER: 04526261 BUSINESS ADDRESS: STREET 1: 191 SPRING STREET CITY: LEXINGTON STATE: MA ZIP: 02421 BUSINESS PHONE: 6178246000 MAIL ADDRESS: STREET 1: 191 SPRING STREET CITY: LEXINGTON STATE: MA ZIP: 02421 FORMER COMPANY: FORMER CONFORMED NAME: GREEN SHOE MANUFACTURING CO DATE OF NAME CHANGE: 19720606 8-K 1 earnings2003.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------------------------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 ---------------------------------- Date of report (Date of earliest event reported): January 15, 2004 ---------------- THE STRIDE RITE CORPORATION (Exact name of registrant as specified in its charter) Massachusetts 1-4404 04-1399290 ------------- ------ ---------- (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) 191 Spring Street, P.O. Box 9191, Lexington, Massachusetts 02420 ---------------------------------------------------------------- (Address of principal executive offices) (Zip code) (617) 824-6000 -------------- (Registrant's telephone number, including area code) N/A --- (Former name or former address, if changed since last report) Item 7. Financial Statements and Exhibits. (c) Exhibits Exhibit Number Title 99.1 Press Release of The Stride Rite Corporation issued on January 15, 2004 Item 9. Regulation FD Disclosure The following information is intended to be included under "Item 12. Results of Operations and Financial Condition" and is included under Item 9 of this Form 8-K in accordance with interim guidance issued by the Securities and Exchange Commission in Release Nos. 33-8216 and 34-47583. On January 15, 2004, The Stride Rite Corporation issued a press release reporting its earnings for the quarter ended November 28, 2003. A copy of this press release is attached to this Current Report on Form 8-K as Exhibit 99.1 and hereby incorporated by reference. The information in this report is being furnished, not filed. Accordingly, the information in Item 9 of this report will not be incorporated by reference into any registration statement filed by the Corporation under the Securities Act of 1933, as amended. [Remainder of page left blank intentionally] SIGNATURES Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. THE STRIDE RITE CORPORATION Date: January 15, 2004 By: /s/ Frank A. Caruso -------------------------------------- Frank A. Caruso Chief Financial Officer EX-99 2 release.txt PRESS RELEASE THE STRIDE RITE CORPORATION January 15, 2004 NEWS RELEASE FOR IMMEDIATE RELEASE CONTACT: Frank A. Caruso, Chief Financial Officer - (617)-824-6611 STRIDE RITE REPORTS IMPROVED FOURTH QUARTER AND FULL YEAR RESULTS - EPS UP 10% IN 2003 Lexington, Massachusetts, January 15, 2004 - The Stride Rite Corporation (NYSE; SRR) today reported its fourth quarter and fiscal year 2003 results. Net sales for the fourth quarter of fiscal 2003 increased 6% to $103.8 million from $98.2 million in the comparable period of fiscal 2002. The Company incurred a net loss of $1.0 million or $.02 per diluted share in the fourth quarter of fiscal 2003, as compared to a net loss of $2.0 million or $.05 per diluted share in last year's fourth quarter. For the full 2003 fiscal year, net sales totaled $550.1 million, a 3% increase from the sales level of $532.4 million achieved in fiscal 2002. Operating income for the 2003 fiscal year was $38.6 million, a 10% increase from the comparable period in 2002. Net income totaled $25.5 million in fiscal 2003, a 6% increase from the net income of $24.1 million in fiscal 2002. On a diluted basis, earnings per share were $.64 in fiscal 2003, an increase of 10%, as compared to $.58 per share in fiscal 2002. Net sales of the Stride Rite Children's Group increased 11% for the fourth quarter and 4% for the fiscal year as compared to the same periods of fiscal 2002. The increases were driven by the Stride Rite company-owned retail stores, which had increases of 8% and 10% for the fourth quarter and fiscal year, respectively, compared to the same periods of fiscal 2002. Net sales at comparable company-owned retail stores increased 4.8% in the fourth quarter and increased 4.7% for the full fiscal year. Stride Rite Children's Group sales to independent retailers increased 16% compared to the prior year's fourth quarter, but decreased 4% for the year. Sales of the Keds brand in the fourth quarter of fiscal 2003 decreased 12% from the comparable period of fiscal 2002, and annual sales declined 3% compared to the prior fiscal year. Sales of the Sperry Top-Sider brand increased 4% in the fourth quarter and 9% for the fiscal year from the comparable periods in fiscal 2002. Fiscal 2003 Tommy Hilfiger Footwear sales for the fourth quarter and the fiscal year increased 7% and 9%, respectively, compared to the same periods in the prior year. International sales for the fourth quarter increased 22% compared to the same period in 2002, although the full year sales declined 5% compared to fiscal 2002. The Company's gross profit percentage of 36.5% in the fourth quarter of fiscal 2003 improved 2.4 percentage points as compared to the same period last year. For the full year, the 2003 gross profit percentage of 38.1% improved 1.6 percentage points. Operating expenses in the fourth quarter and full year of 2003 increased 9% and 7%, respectively, as compared to the prior year. The major operating cost increases for the quarter and year were related to the full effect of last year's retail store expansion, advertising and certain payroll related costs. Net income for the full fiscal 2003 year was negatively impacted by a higher tax rate, which was partially offset by a lower share count in earnings per share. The year-end balance sheet was solid with inventory 17% below last year. Accounts receivable increased 6%, consistent with the fourth quarter sales increase. DSO at 40 days was improved 1 day compared to the prior year DSO of 41. The Company's end of year net cash position of $103 million represented a $30 million increase over fiscal 2002 and the Company has no outstanding debt. The Company repurchased 293,800 and 717,900 shares of company stock in the fourth quarter and full year of fiscal 2003, respectively. David M. Chamberlain, Stride Rite's Chairman and Chief Executive Officer, commented, "During 2003, we successfully executed our strategies and improved our operating performance resulting in increased sales and improved profit margins. I was particularly pleased with the sales gains we achieved in our Stride Rite Children's Group, Tommy Hilfiger Footwear and Sperry Top-Sider brands. We believe this momentum should carry into the new fiscal year. Although Keds had a difficult year, they made some progress particularly in the area of inventory management. During fiscal 2003, as planned, we opened relatively few new Stride Rite Children's Group company-owned retail stores, but made progress in growing the sales of the new doors opened in the prior years. This has strengthened the position of our Stride Rite brand as the premium children's footwear brand with a high quality distribution of our own retail stores, as well as licensed partners, independent and department stores." Mr. Chamberlain continued, "During this past year, we strengthened our balance sheet and improved cash flow. Our disciplined approach to capital management resulted in lower inventories and improved DSO throughout 2003. The 2003 fiscal year ended with a $30 million increase in cash, after repurchasing over $7 million in Company stock during 2003. As we enter this new fiscal year, we anticipate continuing the momentum we experienced this past year, while working through an improving, but still difficult retail environment. For fiscal 2004, we believe our sales will grow in the range of 3% to 5%, resulting in an earnings improvement of 8% to 12% compared to last year. A summary of net sales and net income for the fourth quarter (unaudited) and fiscal year is provided below. A more detailed balance sheet and income statement follows this release. (in thousands, except per share amounts)
For the Quarter Ended For the Fiscal Year Ended Nov. 28, Nov. 29, Nov. 28, Nov. 29, 2003 2002 2003 2002 Net sales $103,769 $98,197 $550,124 $532,400 Net income (loss) (965) (2,035) 25,488 24,117 Net income (loss) per common share: Diluted (.02) (.05) .64 .58 Basic (.02) (.05) .65 .58 Average common shares used in per share computations: Diluted 39,314 40,024 40,063 41,713 Basic 39,314 40,024 39,389 41,315
The Stride Rite Corporation markets the leading brand of high quality children's shoes in the United States. Other footwear products for children and adults are marketed by the Company under well-known brand names, including Keds, Sperry Top-Sider, Tommy Hilfiger, Grasshoppers and Munchkin. Information about the Company is available on our website - WWW.STRIDERITECORP.COM. The Company will provide a live webcast of its fourth quarter conference call. The live broadcast of Stride Rite's quarterly conference call will be available on the Company's website and at WWW.STREETEVENTS.COM, beginning at 10:00AM EST on January 15, 2004. An on-line replay will follow shortly after the call and will continue through January 22, 2004. Information about the Company's brands and product lines is available at WWW.STRIDERITE.COM, WWW.KEDS.COM and WWW.SPERRYTOPSIDER.COM. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This announcement includes forward-looking statements which reflect our current views with respect to the future events or financial performance discussed in the release, based on management's beliefs and assumptions and information currently available. When used, the words "believe", "anticipate", "estimate", "project", "should", "expect", "appear" and similar expressions which do not relate solely to historical matters identify forward-looking statements. Such statements are subject to risks, uncertainties and assumptions and are not guarantees of future events or performance, which may be affected by known and unknown risks, trends and uncertainties. Should one or more of these risks or uncertainties materialize, or should our assumptions prove incorrect, actual results may vary materially from those anticipated, projected or implied. Factors that may cause such a variance include, among others: the opening of new stores may be delayed; the volume of anticipated sales may decline; revenues from new product lines may fall below expectations; the launch of new product lines may be delayed; new retail concepts may not achieve expected results; general retail sales trends may be below expectations; current license agreements may be terminated; consumer fashion trends may shift to footwear styling not currently included in our product lines; our retail customers, including large department stores, may consolidate or restructure operations resulting in unexpected store closings; and additional factors discussed from time to time in our filings with the Securities and Exchange Commission. We expressly disclaim any responsibility to update forward-looking statements. .. The Stride Rite Corporation Summarized Financial Information for the periods ended November 28, 2003 and November 29, 2002 Statements of Income
(in thousands) Fourth Quarter Twelve Months (Unaudited) 2003 2002 2003 2002 ---- ---- ---- ---- Net sales $103,769 $98,197 $550,124 $532,400 Cost of sales 65,914 64,739 340,614 337,951 --------- --------- --------- --------- Gross profit 37,855 33,458 209,510 194,449 Selling and administrative expenses 39,897 36,672 170,867 159,429 Nonrecurring charges (income) - (75) - (75) --------- --------- --------- --------- Operating income (loss) (2,042) (3,139) 38,643 35,095 Other income, net 238 232 1,591 330 --------- --------- --------- --------- Income (loss) before income taxes (1,804) (2,907) 40,234 35,425 Provision for (benefit from) income taxes (839) (872) 14,746 11,308 --------- --------- --------- --------- Net income (loss) $(965) $(2,035) $25,488 $24,117 ========= ========= ========= =========
Balance Sheets
2003 2002 ---- ---- Assets: Cash and cash equivalents $103,272 $73,105 Accounts receivable 51,058 48,075 Inventories 81,925 98,213 Deferred income taxes 14,393 20,588 Other current assets 19,452 14,131 --------- --------- Total current assets 270,100 254,112 Property and equipment, net 60,802 68,291 Other assets 14,315 12,914 --------- --------- Total assets $345,217 $335,317 ========= ========= Liabilities and Stockholders' Equity: Short-term debt - - Current liabilities 63,975 70,068 Deferred income taxes and 13,526 12,208 other liabilities Stockholders' equity 267,716 253,041 --------- --------- Total liabilities and $345,217 $335,317 stockholders' equity ========= =========
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