Famous Footwear 2005 Annual Report Download - page 5

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CREATING DIFFERENTIATION: Differentiation฀has฀been฀a฀key฀to฀ the฀success฀of฀ Famous฀Footwear,฀where฀a฀
revamped฀value฀proposition – focused฀on฀meeting฀the฀needs฀of฀a฀well-defined฀customer – is฀helping฀to฀dis-
tinguish฀this฀953-store฀chain฀from฀its฀competitors.฀ We฀know฀our฀customer฀wants฀trend-right,฀brand-name฀
fashion฀and฀athletic฀shoes฀at฀a฀great฀value฀for฀herself฀and฀her฀family – and฀we฀deliver฀just฀that,฀along฀with฀
fun-to-shop฀stores,฀innovative฀marketing,฀and฀more฀exclusive฀products.฀ As฀a฀result,฀Famous฀Footwear฀posted฀
a฀record฀performance.฀ Capitalizing฀on฀a฀strong฀market,฀the฀chain฀executed฀well,฀increasing฀same-store฀sales฀
2.5฀percent฀and฀growing฀operating฀earnings฀11.2฀percent฀to฀$67.0฀million.฀
DELIVERING COMPELLING PRODUCT: We฀ know฀ that฀ for฀ many฀ consumers,฀ buying฀ shoes฀ is฀ an฀ emotional฀
experience฀–฀they฀want฀to฀fall฀in฀love฀with฀that฀special฀pair.฀ We฀are฀building฀a฀well-differentiated฀portfolio฀of฀
fashion฀footwear฀brands฀that฀consumers฀love฀and฀trust.฀ In฀2005,฀we฀strengthened฀our฀Product฀Development฀
and฀Style฀&฀Trend฀functions฀with฀the฀goal฀of฀delivering฀innovative,฀differentiated฀style.฀ We฀also฀are฀benefit-
ing฀from฀the฀fact฀that฀the฀Bennett฀acquisition฀added฀to฀our฀design฀talent,฀with฀designers฀like฀Franco฀Sarto,฀
whose฀line฀bears฀his฀name.
2005
2001 2002 2003 2004
10.0%
7.5%
5.0%
2.5%
0.0%
12.5%
5.8
6.7
7.4 7.8
12.3
DEPARTMENT฀STORE฀MARKET฀SHARE฀FOR฀
OUR฀WOMEN’S฀FASHION฀FOOTWEAR฀BRANDS*
GROWING฀OUR฀BRAND฀PORTFOLIO฀AND฀MARKET฀SHARE
*
®
Buster฀Brown฀&฀
Licensed฀Characters
PRIVATE LABEL
®
*
™
*
®
*
®
BRANDS-AT-A-GLANCE฀ (by฀revenue)฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀*Used฀under฀license
In฀ 2005,฀ we฀ acquired฀ Bennett฀ Footwear,฀ adding฀ fashion฀ brands฀ like฀Via฀ Spiga,฀ Franco฀ Sarto฀
and฀ Etienne฀ Aigner฀ to฀ our฀ brand฀ portfolio.฀ As฀ a฀ result,฀ our฀ share฀ of฀ market฀ for฀ women’s฀
fashion฀footwear฀brands฀in฀U.S.฀department฀stores฀increased฀to฀12.3฀percent.฀
*Source:฀The฀NPD฀Group – Footwear฀Point-of-Sale฀Data,฀Fiscal฀Years฀2001–2005.฀
*
*