Brown Shoe to cut jobs; sees $27-$30 mln charge
today Feb 5, 2009
Feb 5 (Reuters) - Footwear retailer Brown Shoe Co Inc (BWS.N) said it expects to cut 12 percent to 14 percent of its domestic work force, excluding stores and distribution centers, and take a charge of $27 million to $30 million related to its cost-reduction actions.
The company, which expects to record majority of the charges in the fourth quarter, said it reduced its planned capital spending for the 2008 to 2011 period by an additional $35 million, bringing total reductions to $107 million for the period.
Brown Shoe, which on Jan. 21 said it plans to close 30 to 35 Famous Footwear stores, expects the cost-cutting measures to save $28 million to $31 million annually.
The seller of shoe brands such as Naturalizer, LifeStride and Via Spiga has been hurt by shoppers reining in spending as they combat falling home values and tighter lending conditions.
The retailer also said its preliminary net sales for the fourth quarter were $521 million. Analysts on average were expecting $528.9 million, according to Reuters Estimates.
Sales at its Famous Footwear division for the quarter ended Jan. 31 were $312 million, while same-store sales fell 3.6 percent.
Shares of Brown Shoe closed at $4.23 Wednesday on the New York Stock Exchange. (Reporting by R. Manikandan in Bangalore; Editing by Vinu Pilakkott)
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