Stride Rite acquisition won’t boost Collective Brands earnings in 2008
28/09/2007
Collective Brands, Inc. has said that Stride Rite’s earnings will not be accretive to its earnings in 2008. The company was launched in August when children’s shoe company The Stride Rite Corporation was acquired by family footwear retailer Payless ShoeSource, Inc. and the group was renamed Collective Brands. However, the $800 million takeover will help the company to improve cost efficiencies by approximately $5 million over the course of the next year. The group also predicts that it will result in efficiencies of $12 million to $15 million in 2009 and between $25 million and $30 million in 2010.
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