Topeka, Kan. — Collective Brands reported that first-quarter 2011 net earnings were $26.4 million, or 42 cents per share, compared with $54.2 million, or 83 cents per share, in the first quarter of 2010.
The company reported that net sales decreased 1.1% to $869 million. Same-store sales were down 7.4%.
"We had a challenging first quarter driven by increasingly unfavorable economic conditions affecting mass market consumers as well as unseasonably cold weather. These factors unfavorably affected Payless stores in North America leading to lower customer traffic and sales. We are taking actions to provide better value to customers in light of these economic conditions. As a result, the second quarter is off to a better start," said Matthew Rubel, chairman, CEO and president of Collective Brands. "Other components of our hybrid business model continued to deliver strong results in the first quarter including PLG Wholesale, Payless Latin America, and franchising operations."