New Saucony/Hind parent reports Q2 profit down 23 percent
Collective Brands (NYSE: PSS), which changed its name from Payless ShoeSource earlier this month, said its fiscal second-quarter profit declined 23 percent from higher costs and lower sales. It is now the parent of Hind and Saucony after recently acquiring their former-parent Stride Rite.
The holding company reported earning $24.9 million, or $0.38 per share, during the quarter ended Aug. 4. By comparison, the company earned $32.5 million, or $0.48 per share, during the same period a year ago.
Sales during the quarter decreased about 1 percent from $706.1 million to $699.3 million. Sales in stores open for at least a year dipped 1.4 percent. The company blamed weak sandal sales and later back-to-school shopping seasons in some markets.
Payless, which operates almost 4,600 shoe stores throughout the western hemisphere, changed its corporate name to Collective Brands on Aug. 17, after completing its $900 million acquisition of Stride Rite, which operates 300 stores.
Collective Brands will oversee the two retail chains, as well as Collective Licensing International, a brand-development and licensing company.
The company said it recorded $1.8 million in pretax charges during the quarter for expenses tied to the Stride Rite acquisition and $3.6 million in charges tied to changes in its distribution system. The year-ago quarter also included $3.9 million in one-time income from a credit card settlement and insurance payments.
The company said it expected the Stride Rite acquisition to boost operating profits through 2009 by percentages in the mid-to-upper teens, which was lower than the 20 percent figure company officials gave after the announcement of the acquisition.
The company also expects cost savings from consolidating supply chain operations at Payless and Stride Rite of between $40 million and $50 million through 2010.
Rocky Brands to streamline distribution strategy
Rocky Brands (Nasdaq: RCKY) said it will be consolidating its distribution operations in an effort to improve customer service and increase the company's profitability. It is beginning a transition plan to distribute all products from its corporately owned facility in Logan, Ohio.
Rocky Brands has signed a letter of intent with Kane Distribution to serve as third-party logistics partner to manage and operate the 20-dock, 196,000 square-foot facility.
The transition process is projected to be complete by Jan. 1. Previously, Rocky Brands distributed products from its Logan, Ohio, facility as well as a leased facility in Tunkhannock, Pa.
Timberland promotes two senior executives
Timberland (NYSE: TBL) has appointed two senior executives in key leadership roles: Carden Welsh as senior vice president and chief administrative officer, and John Crimmins as chief financial officer.
Welsh served as Timberland's senior vice president - international from 1998 until 2003 and as treasurer from 1991 until 1998. In his new role, he will oversee Timberland's corporate administration.
Crimmins has served as acting chief financial officer since March 29, 2007. Prior to that, he served the company as vice president, corporate controller and chief accounting officer since joining Timberland in 2002. He will be responsible for the full range of finance activities.
Amer Sports exercises 2003 warrants
Amer Sports said more than 4,000 shares have been subscribed for as a result of an exercise of its 2003 warrants. The corresponding increase in the company's share capital amounting to EUR 16,020 (USD $21,841) was registered on Sept. 4, 2007. As a result of this increase, Amer Sports' share capital now totals EUR 288.8 million (USD $393.7 million) and the total number of shares in issue is 72,209,937.
Amer Sports said shareholder rights commence from the registration date Sept. 4, 2007. The new shares will be listed on the Helsinki Exchanges on Sept. 5, 2007. The share subscription period of Amer Sports' 2003 warrant scheme will end on Dec. 31, 2008.
Amer Sports is the parent of Salomon, Suunto and Atomic.
(Conversion of Euros into U.S. dollars is for information only, is not necessarily relative to earnings, and is based on the currency rate as of Sept. 4.)
For more information about any public company on this page or its financial reports, as well as to view stock prices updated every 15 minutes, visit the SNEWS® Stock Market Updates. Click on: www.snewsnet.com/cgi-bin/snews/stock_report.html.