Collective Brands swings to loss in Q3, accelerates closures
Topeka, Kan. — Collective Brands Inc., parent of Payless ShoeSource, reported Monday that it swung to a loss of $114.3 million in the quarter ended Oct. 29, compared with a profit of $47.6 million in the year-ago period. Excluding a tax-related charge, the retailer would have gained $37.1 million in the quarter.
Revenue edged up 1.4% to $894.4 million, missing Wall Street’s expected $908.1 million in revenue. Sales were weighed down by Payless, where they fell 5.1%. Same-store sales in the United States dropped 3.7%, and the decline was 4.5% at Payless units.
As announced previously, the company reiterated it will shutter 475 underperforming stores in the next three years — 400 Payless stores in the United States, Canada, and Puerto Rico and 75 Stride Rite Children’s stores. It said it will accelerate the timeframe, saying now it will close approximately 350 of those stores — instead of the previously announced 315 — this year.
“Our operating results in the third quarter reflect both the challenges we are facing as well as opportunities we see for marked improvement at Collective Brands," said Michael J. Massey, CEO.
Chico’s FAS net income dips in Q3
Fort Myers, Fla. — Chico’s FAS reported Tuesday that net income for the quarter ended Oct. 29 fell to $26.5 million, compared with $28.8 million a year earlier. Results include costs associated with the company’s acquisition of Boston Proper.
Net sales for the quarter increased 11.5% to $538.5 million, from $483 million. Same-store sales increased 3.7%. By brand, Chico’s/Soma Intimates same-store sales increased 0.6% and White House | Black Market surged 11%.
DSW Q3 profit beats Street, raises full-year outlook
Columbus, Ohio — DSW Inc. reported Tuesday that net income increased to $53.7 million in the third quarter, up from $35.5 million a year earlier.
Sales rose 8.5% to $530.7 million, from $489.3 million. Same-store sales increased 5.2%.
The shoe retailer cited strong boot sales for the performance surge. “We are confident in our strategies and continue to expect fiscal 2011 to represent a strong year of growth, and as a result we have increased our annual guidance," said Mike MacDonald president and CEO.