Brown Shoe Co. Inc. (NYSE:BWS) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Brown Shoe Co. Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 39.13% to $0.32 in the quarter versus EPS of $0.23 in the year-earlier quarter.
Revenue: Decreased 6.02% to $588.7 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Brown Shoe Co. Inc. reported adjusted EPS income of $0.32 per share. By that measure, the company beat the mean analyst estimate of $0.22. It missed the average revenue estimate of $609.05 million.
Quoting Management: “In addition to stronger-than-expected adjusted EPS of $0.32, we reported record first quarter operating profit of $29 million at Famous Footwear, as we saw improved consumer conversion related to our strategic real estate, inventory and omni-channel efforts,” said Diane Sullivan, president and chief executive officer of Brown Shoe Company. “At wholesale, we refined our portfolio, with the recent sale of Avia and Nevados, and we intend to use the related proceeds in our 2013 debt reduction efforts. In the first quarter, prior to the divestiture, we reduced our short-term borrowings by $39 million.”
Key Stats (on next page)…
Revenue decreased 0% from $0 in the previous quarter. EPS increased 128.57% from $0.14 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 $0.2 to a profit $0.19. For the current year, the average estimate has moved down from a profit of $1.31 to a profit of $1.23 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)