Famous Footwear 2011 Annual Report Download - page 3

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FAMILY
Famous Footwear
j At America’s family footwear chain, we
remained focused on consumer engagement
and grew sales to our Rewards members
to 62% of Famous Footwear net sales.
j Our successful real estate strategy
extended beyond store closings. With
average sales of $203 per square foot,
the stores we opened in 2011 continued to
outperform the overall chain by 9 percent.
j At FamousFootwear.com, sales of
$35 million were up 40 percent –
the equivalent of opening eight new
brick-and-mortar locations with
annual revenue of $1.2 million per store.
j More than 106 million people walked
through our doors last year, and
nearly a quarter of them – 24 percent –
bought shoes. This was a 10 basis
point improvement over 2010.
j We developed a new store format, which
we’ve successfully rolled out in two mall
locations. We’re now looking at ways
to apply this format in other locations.
Direct-to-Consumer (D2C)
j Our D2C business – which includes
FamousFootwear.com, Shoes.com,
10 other ecommerce sites and four
mobile sites – experienced robust
growth in 2011, as we hosted more
than 80 million unique visitors. The
resulting annual gross sales of over
$150 million included $45 million of
Brown Shoe Company branded sales.
j With over 60,000 SKUs for sale, it’s not
surprising we shipped nearly 2 million
packages. What’s even more impressive
is our ranking as the 137th largest
internet retailer by Internet Retailer 2011.
j During the holiday shopping season,
we hit record sales for Black Friday
and Cyber Monday and also had more
than $1 million in smartphone sales.
With the conclusion of 2011, we ended a challenging year marked by a demanding
SAP implementation and a significant shift in toning footwear trends. While we’re
disappointed we did not meet our expectations, 2011 was not without its successes,
thanks in large part to the portfolio review work we completed throughout the year.
This hard work helped set the stage for an improved 2012 and will enable us to
accelerate our ability to meet investor expectations and deliver improved shareholder
returns. It also allows us to move forward as a smaller but stronger and more
profitable company focused and aligned with the broad consumer demand
for Family, Contemporary Fashion and Healthy Living footwear.
During the course of 2011, we expanded our reach into Healthy Living,
with the acquisition and integration of American Sporting Goods (ASG).
We grew Contemporary Fashion by more than 12 percent, with
contribution from strong brands like Vera Wang, Via Spiga,
Franco Sarto and importantly Sam Edelman. For Family,
we managed through a challenging toning situation
at Famous Footwear and successfully ended
the year with inventory down almost
6 percent on an average store basis.
DEAR
SHAREHOLDERS
A BALANCED APPROACH
2011 BROWN SHOE COMPANY ANNUAL REPORT 1