Famous Footwear 2011 Annual Report Download - page 5

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2011 BROWN SHOE COMPANY ANNUAL REPORT 3
HEALTHY LIVING
Naturalizer
j Over the past several years, Naturalizer
has truly developed into a global family of
comfort brands, with over $500 million in
worldwide sales.
j Natural Soul made up nearly 50 percent of
sales in the mid-tier channel and grew more
than 15 percent year-over-year.
j Naya, the newest member of the Naturalizer
brand family, has expanded our presence in
department store and independent channels,
by helping us add more than 150 new
accounts since its launch.
Dr. Scholl’s Shoes
j This business has undergone a significant
cultural and business model shift over
the past 18 months, transitioning to a
consumer-first focus from a first-cost,
made-to-order mentality.
j In 2011, we added 160 new accounts, such
as Lord & Taylor, Piperlime, macys.com
and Scheels and grew our online sales more
than 250 percent over 2010.
j Consumer and market data has confirmed
we’re moving in the right direction, with
2011 sales up 15 percent year-over-year,
excluding toning and pocket shoe products.
Avia and Ryka
j With ASG, we acquired great brands like
Avia and Ryka. To help build and strengthen
these brands for the future, we added new
members with extensive athletic footwear
backgrounds to the Brown Shoe Company team.
j Additionally, we’ve invested in product
development and design talent and we’re
now building a pipeline of shoes to meet
our consumers’ needs.
In total, these eorts are expected to yield $80 million
in SG&A savings, including indirect costs, and deliver
$12 million in EBIT. While we expect to see the bulk of
these benefits materialize in the back half of 2012, the
overall contribution this work is expected to have in
2013 is important to our long-term growth strategy.
As I reflect on 2011, it was both a challenging and
exciting year, and we faced the opportunities and the
challenges the same way: with a balanced approach
by addressing both the short- and long-term needs
of our business. In 12 short months, we acquired a
company, refinanced our debt, divested a brand,
restructured our portfolio and completed a dicult,
enterprise-wide systems implementation.
Together, all of this has helped set the stage for a
renewed and reinvigorated Brown Shoe Company, and
I am excited about our potential. While we may be a
slightly smaller company today, we are stronger, more
profitable, and ready to take on new challenges and
make the most of new opportunities.
I’m looking forward to seizing these opportunities and
to seeing more successes, as I work with our executive
team, all of our Associates and our board of directors.
Thanks to all of you for your hard work
last year. As we leave 2011 behind,
I’d like to say a special goodbye to
Julie Esrey and Joe Bower and
thank them for their tenure as
directors, and I’d like to welcome
Mahendra Gupta to the Brown
Shoe Company board.
Diane M. Sullivan
President and Chief Executive Officer