Famous Footwear 2012 Annual Report Download - page 3

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OUR MISSION IS TO
INSPIRE PEOPLE
TO FEEL GOOD
AND LIVE BETTER...
FEET FIRST!
LIVING
BETTER
2012 BROWN SHOE COMPANY ANNUAL REPORT 1
DEAR SHAREHOLDERS
AT BROWN SHOE COMPANY,
2012 WAS TERRIFIC YEAR,
BY ANY NUMBER OF MEASURES.
The combined eorts across our entire corporate organization
— and the continued focus on our strategic framework —
helped deliver on our portfolio realignment strategies, resulting
in a 106% increase in our stock price for the calendar year.
For 2012, we reported sales of $2,598 million, an improvement of 0.6% over
2011 sales of $2,583 million. Excluding sales in both years for brands exited
as part of our portfolio realignment eorts, consolidated sales were up 2.6%.
Our adjusted earnings per share improved more than 60% in 2012 to $1.13,
and we maintained our dividend return of $0.28 to shareholders in 2012.
We also strengthened our balance sheet, by reducing short-term borrowings
by nearly $100 million and by lowering our interest expense by approximately
$2.7 million. On the cost side of the equation, we worked to eliminate
corporate costs where possible and to institute good expense management
for other areas. As a result, we accomplished our 2012 goal of taking out more
than $18 million of SG&A expenses.
From a talent perspective, we made changes at the executive level with
the addition of Russ Hammer as CFO and Mark Schmitt as CIO. With these
changes, we embarked on a more structured path to long-term success,
designed to help drive improved processes in both finance and IT and across
the overall company.
INSPIRING
PEOPLE
FOCUSED
PRODUCTIVE
DRIVEN
INNOVATIVE
FEELING
GOOD