Collective Brands Misses Street Estimates (PSS)

Collective Brands, Inc. PSS reports Q2 EPS of $0.32 versus estimates of $0.46. Collective Brands, Inc. reports revenues of $841.3 million versus estimates of $863.27 million. "Our earnings increased driven by strong performance in our wholesale and international businesses, but overall results were dampened by our Payless domestic business," said Matthew E. Rubel, Chairman, Chief Executive Officer and President of Collective Brands, Inc. "We anticipate continued strength in wholesale and international; and we are focused on fixing Payless controllables related to trend-right offerings, use of brands, and our breadth of assortment." The company intends to reduce its leverage ratio of Net Debt to EBITDA to near 1x by the end of fiscal 2010. The company added that it has a share repurchase authorization of $187 million, and it currently intends to repurchase shares to the extent permitted by its debt covenants. Year-end 2010 retail store count is expected to increase by approximately 20 stores, net of store closings. Shares of PSS are bid lower in the after-hours.