Payless Beats EPS And Revenues Estimates (PSS)

Collective Brands PSS today reported financial results for its 2010 fourth quarter and fiscal year ended January 29, 2011. The fourth quarter 2010 net loss attributable to Collective Brands, Inc. was $10.1 million, or $0.16 per share, compared to a net loss of $10.9 million, or $0.17 per share, in the fourth quarter of 2009. Collective Brands' fourth quarter 2010 net sales increased 4.3% to $773.8 million. This was driven by sales growth of 19.8% from the Performance + Lifestyle Group ("PLG") Wholesale segment and Collective Brands' 0.4% comparable store sales1 increase. Collective Brands' 2010 net sales were $3.38 billion, up 2.0% versus the prior year driven by net sales gains at PLG Wholesale and Payless International of 22.3% and 9.0%, respectively. Full year 2010 net earnings attributable to Collective Brands, Inc. were $112.8 million, or $1.75 per diluted share, up 36.4% versus 2009. Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA")(2) were $325.1 million for 2010 compared to $298.4 million the prior year, an increase of 8.9%. "We finished a strong year with a solid fourth quarter as our portfolio of leading brands and innovative, on-trend products connected with consumers across geographies and price points. As a result, we delivered improved financial results for both the fourth quarter and the year," said Matthew E. Rubel, Chairman, Chief Executive Officer and President of Collective Brands, Inc. "In aggregate, the strength of our hybrid business model enabled us to grow in a variety of ways in 2010. PLG delivered record annual sales and earnings. Payless successfully expanded franchising, accessory categories, and its footwear house of brands. Going into 2011, we have great momentum in wholesale and international, improving domestic retail sales, and a strong balance sheet."