Brown Shoe (BWS) Plunges on Big Earnings Miss

Shares of Brown Shoe Co. (NYSE:BWS) got hammered Tuesday as the company reported earnings of 8 cents a share, far below the 15 cents a share analysts had looked for.

Brown Shoe operates the Naturalizer and Famous Footwear shoe-store chains.

The company said it had resolved most of the issues with a new IT system that had disrupted wholesale deliveries and led to a lower-than-expected fourth-quarter profit, which knocked its shares down 28 percent to a 6-month low.

Brown Shoe said the IT system problems had pushed up delivery costs and hit its on-time deliveries.

"(This) meant less selling time on the floor and greater markdown, chargeback and liquidation pressure," Chief Operating Officer Diane Sullivan said.

Brown Shoe closed at $11.56, falling $2.77, or 19.33 percent.




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