Famous Footwear 2013 Annual Report Download - page 5

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2013 BROWN SHOE COMPANY ANNUAL REPORT 3
Our Vision
+ Compelling portfolio of demand brands
+ Differentiated family footwear experience
+ Engaged and empowered workforce
+ Efficient and cost-effective infrastructure
During 2013, we further strengthened our balance
sheet, by reducing short-term borrowings to
$7 million, down more than 90% from $105 million
at the end of 2012. As a result, we also lowered our
annual interest expense by approximately $2 million.
At year end, cash and investments, net of short-
term borrowings, were $75.5 million, a $112.3 million
improvement over the prior year. The work we’ve
done on our balance sheet resulted in an upgrade
to B1 from Moody’s in September, followed by an
upgrade to B+ from S&P in December.
Strategically, we furthered our portfolio realignment
work in May 2013, when we announced we would be
exiting Avia, Nevados and other licensed brands. We
followed these dispositions with an addition, when
we acquired Franco Sarto in February of 2014 and
strategically shifted this brand from licensed to owned.
For 2014, we will continue to build against our vision
and strategic framework. At wholesale, we will invest
in our higher-growth Contemporary Fashion platform,
specifically in our Sam Edelman and Franco Sarto brands.
For Famous Footwear, we will continue to identify
omni-channel opportunities, as consumer shopping
patterns shift toward a multi-channel approach at
an ever-increasing rate. Across the company, we
will evaluate each brand and business against set
performance criteria, so we can be certain our eorts are
appropriately targeted and are driving improved results.
As we advance our strategy to deliver long-term
shareholder value – and maintain our emphasis on being
a more profitable company – you will see continued
improvement in our financial metrics. By focusing our
attention and our eorts around our best performing
brands and businesses, you will see sustained
progress toward our long-term goals of adjusted
ROIC of 15% and adjusted operating margin of 8%.
In 2014, we will be celebrating the 100th anniversary
of Brown Shoe Company trading on the New York
Stock Exchange. We share this achievement with
only 23 other companies, and it would not have been
possible without the support of our outstanding
Associates, investors and partners around the world.
Diane M. Sullivan
CEO, President and Chairman of the Board