Brown Shoe Co. Earnings: Here’s Why Investors are Buying Shares Now

Brown Shoe Co. Inc. (NYSE:BWS) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 4.22%.

Brown Shoe Co. Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 106.25% to $0.33 in the quarter versus EPS of $0.16 in the year-earlier quarter.

Revenue: Rose 3.74% to $621.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Brown Shoe Co. Inc. reported adjusted EPS income of $0.33 per share. By that measure, the company beat the mean analyst estimate of $0.22. It beat the average revenue estimate of $596.73 million.

Quoting Management: “For the second quarter, we exceeded expectations with an improvement in adjusted EPS of over 100%. While consolidated net sales were up $57 million in the quarter — or 10% year-over-year — approximately $22 million of this amount was timing related, due to a shift in sales to the second quarter from the third quarter,” said Diane Sullivan, president and chief executive officer of Brown Shoe Company. “Both retail and wholesale contributed to this quarter’s success, with Famous delivering record second quarter sales and operating profit and both of our wholesale platforms — Healthy Living and Contemporary Fashion — reporting double-digit increases in sales.”

Key Stats (on next page)…

Revenue increased 5.61% from $588.66 million in the previous quarter. EPS increased 3.13% from $0.32 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.66 to a profit $0.64. For the current year, the average estimate has moved up from a profit of $1.27 to a profit of $1.33 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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