US-based global footwear company Brown Shoe Company, Inc. has reported a fall in sales for the first quarter, due primarily to lower than expected sales at the company’s wholesale division. Consolidated net sales fell 1.6% to $566.3 million from $575.5 million in the equivalent quarter of fiscal 2006, whilst net earnings slipped to $9.6 million from $10 million.

Wholesale sales declined 16.6% to $180.7 million compared with $216.8 million in the previous year as solid performances from Naturalizer, LifeStride, Etienne Aigner, and Dr. Scholl's were offset by the exiting of the Bass licence at the end of 2006 and a reduced emphasis on lower-margin private label business.

On a more positive note, total sales at Famous Footwear rose 7.6% to a first quarter record of $325.3 million, up from $302.3 million for the same 13-week period last year. Same-store sales also increased, rising 3.4%. Meanwhile, the company’s Specialty Retail segment, which consists of the Naturalizer stores and the Shoes.com e-commerce business, reported sales of $60.3 million, a 6.9% increase from last year's $56.4 million. This increase was driven by a 3.4% same-store-sales gain in the segment and a 46.6% gain at Shoes.com.

A $2.5 billion footwear company with global operations Brown Shoe's Retail division operates the Famous Footwear chain and approximately 300 specialty retail stores in the USA and Canada under the Naturalizer, FX LaSalle, and Franco Sarto names.