Collective Brands returns to profit in Q2
TOPEKA, Kan. — Collective Brands reported net earnings of $9.7 million, or 16 cents per share, for its second quarter compared with a loss of $35 million, or 58 cents per share, in the second quarter of 2011.
Net sales increased 0.4% to $886 million, driven by a 2.9% comparable-store sales ncrease and sales growth of 6.1% in the Performance + Lifestyle Group Wholesale segment, offset in part by operating 375 fewer stores.
"Our second quarter results illustrate the progress that Collective Brands is making in executing the turnaround of the Payless business and continuing the growth in the Performance + Lifestyle Group," said Michael Massey, CEO of Collective Brands, Inc. "The results reinforce the point that the new Payless strategy is working domestically as we are re-connecting with our core budget-conscious consumer through more relevant price points and styles. As we implemented the Payless strategy in Latin America during the quarter, we saw strong comparable-store sales results. Within PLG, Sperry Top-Sider continues to deliver strong growth and we are again posting double-digit comparable store sales gains at Stride Rite retail stores, demonstrating their resurgence."