Brown Shoe Company Announces Sale of Shoes.com

ST. LOUIS--()--Brown Shoe Company (NYSE:BWS, brownshoe.com) today announced it has sold Shoes.com to SHOEme, and the transaction closed immediately. The company expects the sale to result in a gain in the fourth quarter of 2014, which will be considered a non-GAAP adjustment.

“Shoes.com’s experience in the industry will be invaluable to all of our brands, as SHOEme continues its rapid expansion.”

“Since 2000, Shoes.com has helped us greatly advance our ecommerce efforts at a pace ahead of the industry and has also served as the platform for many of our branded wholesale ecommerce sites, including Naturalizer.com, SamEdelman.com and ViaSpiga.com, among others," said Diane Sullivan, CEO, president and chairman of Brown Shoe Company. “While Shoes.com has been a beneficial part of our company, we believe now is the right time to focus our attention on Famous.com and our branded wholesale ecommerce sites, as we continue to expand and invest in more strategic omni-channel, online and mobile efforts. With over 1,000 brick-and-mortar locations, an established online presence and over 1 million mobile app downloads, we believe Famous Footwear will be the leading omni-channel destination for the footwear industry.”

“Shoes.com has a strong history with top-tier brands and a commitment to providing an unparalleled shoe-shopping experience,” said Roger Hardy, CEO of OnlineShoes.com and SHOEme.ca. “Shoes.com’s experience in the industry will be invaluable to all of our brands, as SHOEme continues its rapid expansion.”

Brown Shoe Company does not expect the sale of Shoes.com to have a negative impact on operations going forward. Additional details regarding the sale of Shoes.com will be available in the company’s 10-K filing. Financo Inc. served as advisor to Brown Shoe Company for this transaction.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

This press release contains certain forward-looking statements and expectations regarding the company’s future performance and the performance of its brands. Such statements are subject to various risks and uncertainties that could cause actual results to differ materially. These risks include (i) changing consumer demands, which may be influenced by consumers' disposable income, which in turn can be influenced by general economic conditions; (ii) intense competition within the footwear industry; (iii) rapidly changing fashion trends and purchasing patterns; (iv) customer concentration and increased consolidation in the retail industry; (v) political and economic conditions or other threats to the continued and uninterrupted flow of inventory from China, where Brown Shoe Company relies heavily on manufacturing facilities for a significant amount of their inventory; (vi) the ability to recruit and retain senior management and other key associates; (vii) the ability to attract, retain and maintain good relationships with licensors and protect intellectual property rights; (viii) the ability to secure/exit leases on favorable terms; (ix) the ability to maintain relationships with current suppliers; (x) compliance with applicable laws and standards with respect to lead content in paint and other product safety issues; (xi) the ability to source product at a pace consistent with increased demand for footwear; and (xii) the impact of rising prices in a potentially inflationary global environment. The company's reports to the Securities and Exchange Commission contain detailed information relating to such factors, including, without limitation, the information under the caption Risk Factors in Item 1A of the company’s Annual Report on Form 10-K for the year ended February 1, 2014, which information is incorporated by reference herein and updated by the company’s Quarterly Reports on Form 10-Q. The company does not undertake any obligation or plan to update these forward-looking statements, even though its situation may change.

About Brown Shoe Company

Brown Shoe Company is a $2.5 billion, global, footwear company whose shoes are worn by people of all ages, from all walks of life. Our products are available virtually everywhere - in the over 1,200 Famous Footwear and Naturalizer retail stores we operate, in hundreds of major department and specialty stores, on 14 branded ecommerce sites, and on many additional third-party retail websites. Through our broad range of products, we serve three key market segments. Our Family brands - Famous Footwear and Famous.com - are one-stop-shopping destinations for high quality, affordable styles for a family’s every occasion. Active people who want comfort, style and performance, can look to our Healthy Living brands - Naturalizer, Dr. Scholl's, LifeStride and Ryka. Our Contemporary Fashion brands - Sam Edelman, Franco Sarto, Vince, Via Spiga, Fergie Footwear and Carlos Santana - keep fashionistas in step with the latest trends. At Brown Shoe Company, we inspire people to feel good and live better... feet first!

About SHOEme

SHOEme is the parent company of online footwear retailers OnlineShoes.com and SHOEme.ca. Established in 1996, OnlineShoes.com is the nation's first online shoe retailer. With a history that began decades ago in a family-owned corner shoe store, the company is committed to delivering exceptional value and service, both in the United States and internationally. OnlineShoes.com offers the latest high-quality footwear for men, women and kids with over 300 name brands, as well as a wide selection of bags and accessories. SHOEme.ca is one of Canada's fastest growing ecommerce companies. Its mission is to redefine the shopping experience by directly connecting consumers with premium clothing and footwear brands. It applies technology and fashion expertise to enable consumers to experience the best that these brands have to offer. For more information, visit OnlineShoes.com or SHOEme.ca.

Contacts

Brown Shoe Company
Investors:
Peggy Reilly Tharp, 314-854-4134
ptharp@brownshoe.com
or
Media:
Kelly Malone, 314-854-4093
kmalone@brownshoe.com

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