Famous Footwear Hurt By Economy, Weather

ST. LOUIS-Famous Footwear’s same-store sales during its third quarter fell 6.2%, due to general weakness in the economy, unseasonable weather and a lack of new fashions to excite consumers, said management of parent company Brown Shoe Co. during a conference call. “Lack of traffic was the story,” explained Joseph Wood, president of Brown Shoe’s retail division.

Comparable sales of men’s shoes fell 10% and women’s fell 8%, while children’s products somewhat rose results. Total sales at the chain fell 1.4%, to $361 million, and operating earnings dropped 22.2% to $30.8 million.

Despite the weak quarter, executives plan to open 135 Famous Footwear stores next year on top of the 110 to open this year. So far in 2008, management says it has committed to 128 lease signings. The company currently operates 1,060 locations.

In its other chain, the 278-unit Naturalizer women’s concept, executives are looking overseas for growth. So far in China, the chain has about 20 stores, which started opening in the fall, and 10 to 15 more are planned for the end of the year. Brown Shoe plans to have 500 Naturalizer stores up and running in China in five years.

For the full year, management is predicting that Famous Footwear’s same-store sales will come in between flat and a 1% drop, down from a 2% to 3% increase that was forecast in the second quarter. Earnings per share estimates were also dipped, from between $1.58 and $1.63, to $1.40 to $1.45.