Famous Footwear 2012 Annual Report Download - page 4

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2 2012 BROWN SHOE COMPANY ANNUAL REPORT
Turning to our business units, starting with Famous Footwear led
by Rick Ausick. We had a record 2012 in terms of sales – crossing the
$1.5 billion mark – and we also achieved gross profit of $666 million
and record operating earnings of $94 million. Famous Footwear
remains at the leading edge of our strategic eorts to build brand
dierentiation and brand equity.
Our real estate strategy continued to drive improved revenue per
square foot of $199 versus $186 in 2011, as we continued to put our
Famous Footwear stores in the right places in 2012. We drove
consumers to our stores with our new Victory marketing campaign,
especially during back-to-school when same-store-sales were up 5.5%.
Famous Footwear also delivered an overall record setting third quarter,
with same-store-sales up 6.8%.
In 2012, we focused on omni-channel growth to maximize our
investments in real estate, inventory assortment and marketing at
Famous Footwear, and our eorts are paying o. Famous.com was
up 22% in 2012, and we logged more than 60 million visits, with a
quarter of those via mobile. In total, mobile revenue grew by more
than 190% in 2012.
At Wholesale, sales were up 1.6% over 2011, excluding exited brands.
Our contemporary fashion platform sales were up 11.0%, with our
Sam Edelman brand closing in on the $100 million sales threshold.
For Healthy Living, sales were down 3.5%, as we saw mixed results
across this platform.
For both wholesale platforms, we have been concentrating our eorts
around our best performing brands to drive better results and deliver
value for our shareholders, but there is still work to be done in 2013.
To this end, we aligned our contemporary fashion brands — including
our celebrity brands — under Jay Schmidt, president of contemporary
fashion, and 2012 was the first full year of this structure. Franco and
Fergie benefitted greatly from focused attention at the platform level,
with revenue for each up 20% and 55%, respectively.
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