Brown Shoe to reduce store expansion plan
27/11/2008
The Brown Shoe Company has reported results for the third quarter of 2008, with an end-date of November 1.
Net sales in the third quarter decreased 2.2% to $631.7 million compared to $645.5 million in the same quarter last year. Earnings decreased to $10.4 million.
Chairman and chief executive, Ron Fromm, stated: “While the third quarter began as anticipated, as we delivered to our Back-to-School expectations, our results for the quarter were subsequently impacted by the sudden and rapid decline in consumer spending that followed the onset of the economic crisis in which we find ourselves. We are confident that Brown Shoe's financial strength and portfolio of brands position us well to weather these turbulent times. Nonetheless, we have taken a proactive approach to managing our business in this downturn, as we do not expect an improvement in the near- term.”
He said the company would direct resources “more judiciously”. As such, it has reduced its store expansion plans for the 2009 to 2011 period, and will cut back on redeveloping its head office in St Louis, Missouri, and, possibly, on IT.
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