Brown Shoe Announces 3-for-2 Stock Split; Increases Dividend by 20%
ST. LOUIS, MISSOURI, March 2, 2006 – Brown Shoe Company, Inc. (NYSE: BWS) today announced that its Board of Directors authorized a 3-for-2 split of the Company's Common Stock, to be effected in the form of a stock dividend of one share of the Company's Common Stock for every two shares outstanding. Simultaneously, the Board approved a 20% increase in its quarterly cash dividend. The cash dividend increase raises the pre-split quarterly cash dividend from $0.10 per share to $0.12 per share. On a post-split basis, the cash dividend would equal $0.08 per share.The record date for the stock split and the cash dividend is March 17, 2006. Stockholders will receive one new share of common stock for every two shares they own and will receive cash in lieu of fractional shares, based on the closing price of the Company’s common stock on the record date, as adjusted for the stock dividend. Stockholders also will be paid a quarterly cash dividend of $0.12 per share on a pre-split basis. Both the cash dividend and the stock dividend will be payable on April 3, 2006.
"The dividend increase demonstrates our commitment to maximizing shareholder value and reflects our strong cash flow and operating results,” said Brown Shoe Chairman and CEO Ron Fromm. "We believe this stock split provides an opportunity to broaden our base of investors by making our stock more accessible while improving its trading liquidity."
With this dividend, Brown Shoe will have paid cash dividends for 333 consecutive quarters. With the split, the number of shares outstanding will rise from approximately 18.5 million shares to approximately 27.8 million shares.
This morning in a separate press release, Brown Shoe reported that its net earnings were up more than 50 percent on record sales for its fourth quarter of fiscal 2005.
Brown Shoe is a $2.3 billion footwear company with global operations. The Company operates the 900+ store Famous Footwear chain, which sells brand name shoes for the family. It also operates 300+ specialty retail stores in the U.S. and Canada under the Naturalizer, FX LaSalle and Via Spiga names, and Shoes.com, the Company’s e-commerce subsidiary. Brown Shoe, through its Wholesale divisions, owns and markets leading footwear brands including Via Spiga, Naturalizer, LifeStride, Nickels Soft, Connie and Buster Brown; it also markets licensed brands including Franco Sarto, Dr. Scholl's, Etienne Aigner, Bass and Carlos by Carlos Santana for adults, and Barbie and Disney character footwear for children. Brown Shoe press releases are available on the Company's web site at http://www.brownshoe.com.
ST. LOUIS, MISSOURI, March 2, 2006 – Brown Shoe Company, Inc. (NYSE: BWS) today announced that its Board of Directors authorized a 3-for-2 split of the Company's Common Stock, to be effected in the form of a stock dividend of one share of the Company's Common Stock for every two shares outstanding. Simultaneously, the Board approved a 20% increase in its quarterly cash dividend. The cash dividend increase raises the pre-split quarterly cash dividend from $0.10 per share to $0.12 per share. On a post-split basis, the cash dividend would equal $0.08 per share.
The record date for the stock split and the cash dividend is March 17, 2006. Stockholders will receive one new share of common stock for every two shares they own and will receive cash in lieu of fractional shares, based on the closing price of the Company’s common stock on the record date, as adjusted for the stock dividend. Stockholders also will be paid a quarterly cash dividend of $0.12 per share on a pre-split basis. Both the cash dividend and the stock dividend will be payable on April 3, 2006.
"The dividend increase demonstrates our commitment to maximizing shareholder value and reflects our strong cash flow and operating results,” said Brown Shoe Chairman and CEO Ron Fromm. "We believe this stock split provides an opportunity to broaden our base of investors by making our stock more accessible while improving its trading liquidity."
With this dividend, Brown Shoe will have paid cash dividends for 333 consecutive quarters. With the split, the number of shares outstanding will rise from approximately 18.5 million shares to approximately 27.8 million shares.
This morning in a separate press release, Brown Shoe reported that its net earnings were up more than 50 percent on record sales for its fourth quarter of fiscal 2005.
Brown Shoe is a $2.3 billion footwear company with global operations. The Company operates the 900+ store Famous Footwear chain, which sells brand name shoes for the family. It also operates 300+ specialty retail stores in the U.S. and Canada under the Naturalizer, FX LaSalle and Via Spiga names, and Shoes.com, the Company’s e-commerce subsidiary. Brown Shoe, through its Wholesale divisions, owns and markets leading footwear brands including Via Spiga, Naturalizer, LifeStride, Nickels Soft, Connie and Buster Brown; it also markets licensed brands including Franco Sarto, Dr. Scholl's, Etienne Aigner, Bass and Carlos by Carlos Santana for adults, and Barbie and Disney character footwear for children. Brown Shoe press releases are available on the Company's web site at http://www.brownshoe.com.