Collective Brands pleased with Q1 results
Footwear retailer Collective Brands—the parent company of StrideRite and Payless ShoeSource—has posted a better-than-expected first-quarter profit. Wholesale and international revenue increased and the company has improved its inventory
management.
The company, which was hit with a $304.6 million verdict
last month in a trademark infringement case filed against it by
larger rival adidas, reported net income of $19.7
million for the first three months of its fiscal year.
Net sales for the company rose by 28% to $932.4 million for the period ended May 3.
Chief executive, Matthew Rubel, commented: “Our operating results in the first quarter of 2008 demonstrate the strength of the new business model, which offers diversity in price points, brands, selling channels and geographies. Several areas of the company reported strong growth. International and wholesale sales increased with particular strength in Payless Latin America, Sperry Top-Sider, and Saucony. In addition, we effectively managed our retail inventories to keep them fresh and controlled our costs to produce good first-quarter results and position us well for the future. In addition to our earnings performance, we also generated strong cash flow and we intend to continue to use cash flows from mature businesses to accelerate growth opportunities that our retail, wholesale and licensing platforms provide.”
