Brown Shoe posts 2Q loss as sales decline

Brown Shoe reports 2nd-quarter loss, pulled down by charges and lower sales

• On 10:55 am EDT, Wednesday August 26, 2009

ST. LOUIS (AP) -- Brown Shoe Co. reported a second-quarter loss Wednesday, weighed down by charges and softer sales.

The footwear company lost $4.2 million, or 10 cents per share, for the period ended Aug. 1. That compares with a profit of $2.2 million, or 5 cents per share, a year ago.

Quarterly results include a 3 cents-per-share charge related to information technology initiatives.

Analysts surveyed by Thomson Reuters, whose estimates normally exclude one-time items, predicted a smaller loss of 7 cents per share.

Sales fell 10 percent to $511.6 million from $569.2 million and missed Wall Street's estimate of $539.3 million.

Famous Footwear sales dipped 3.7 percent to $314.1 million, with its same-store sales down 6.7 percent on less traffic.

Same-store sales, or sales at stores open at least a year, are a key indicator of retailer performance since they measure growth at existing stores rather than newly opened ones.

Specialty retail sales fell 12 percent to $55.5 million partly on the stronger dollar and fewer sales at shoes.com.

Shares of Brown Shoe dropped 70 cents, or 8.7 percent, to $7.31 in morning trading. Over the past year, the stock has traded in a range of $2.04 to $18.44.

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