Stride Rite Comments On Expected Third Quarter Results
LEXINGTON, Mass.--(BUSINESS WIRE)--Sept. 12, 2000--The Stride Rite Corporation (NYSE:SRR) announced today that, based on preliminary information, it expects earnings for the recently-completed third quarter to be in the range of $.17 to $.19 per share. This is below last year's third quarter results of $.22 per share and the First Call consensus analyst estimate of $.26 per share for the third quarter of fiscal 2000.
The Company stated that the lower earnings are primarily due to a decline in revenues and increased inventory obsolescence charges. Sales for the third quarter of 2000 totaled approximately $145 million, down from $156 million in the comparable period of fiscal 1999. The Company believes that the lower sales were caused primarily by weak retail sales trends, especially in the department store sector, which resulted in lower than expected reorders during the quarter.
The Company expects to announce final results for the third quarter of fiscal 2000 on Thursday, September 21, 2000. The earnings release will be followed by a conference call with management beginning at 10:AM EDT on September 21, 2000, which will be webcast live through www.streetevents.com and the Company's website, www.strideritecorp.com
The Stride Rite Corporation markets the leading brand of high quality children's shoes in the United States. Other footwear products for children and adults are marketed by the Company under well-known brand names, including Keds, Sperry, Tommy Hilfiger, Grasshoppers and Street Hot. Information about the Company is available on our website
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. The words "expect", "estimate", and other similar expressions which do not relate solely to historical matters identify forward-looking statements. Undue reliance should not be placed on forward-looking statements because they involve known and unknown risks and uncertainties which may cause actual results to differ materially from anticipated, projected or implied future results. Factors that may cause such a difference include, among others: the preliminary nature of financial information concerning the third fiscal quarter, revenues from new product lines may fall below expectations; the launch of new product lines may be delayed; and additional factors discussed in the Company's reports filed with the Securities and Exchange Commission and the exhibits thereto. The Company disclaims any responsibility to update these statements.
CONTACT: The Stride Rite Corporation John M. Kelliher, (617) 824-6028