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Brown Shoe Company Reports Third Quarter 2013 Results and Raises EPS Guidance Range

  Brown Shoe Company Reports Third Quarter 2013 Results and Raises EPS
  Guidance Range

           Famous Footwear delivers record sales of $439.6 million

         Sales at wholesale operations improve 4.5% to $205.3 million

Business Wire

ST. LOUIS -- November 26, 2013

Brown Shoe Company (NYSE: BWS)(brownshoe.com) today reported third quarter
2013 financial results, with net sales of $702.8 million up 1.0% versus third
quarter 2012 net sales of $696.0 million, excluding sales from discontinued
operations for both quarters. Results for the third quarter of 2013 and 2012
included sales of $0.2 million and $1.4 million, respectively, from brands and
businesses the company has exited.

The company reported third quarter 2013 net earnings of $27.3 million, or
$0.63 per diluted share, up 12.4% compared to $24.3 million, or $0.56 per
diluted share, in the prior year. Third quarter 2012 included $2.6 million of
costs related to the company’s portfolio realignment efforts ($1.6 million on
an after-tax basis, or $0.04 per diluted share). Gross profit margin for the
third quarter of 2013 declined 50 basis points to 39.6% from 40.1% in 2012.

“Famous Footwear reported record sales in the third quarter, with strength
across all geographies, climate zones and genders. We also reported a 4.9%
increase in same-store-sales^(1) for the quarter,” said Diane Sullivan,
president and chief executive officer of Brown Shoe Company. “For our
wholesale business, we saw continued improvement. Sales were up 4.5% in the
quarter, as our trend-right styles continued to resonate with consumers.”

US$M, except per share (unaudited)                 13 Weeks         3Q
                                                    3Q’13   3Q’12    Change
Consolidated net sales                             $702.8  $696.0  1.0%
Famous Footwear                                    439.6   436.8   0.6%
Wholesale Operations                               205.3   196.4   4.5%
Specialty Retail                                   57.9    62.8    (7.8%)
Gross profit                                       278.2   279.3   (0.4%)
Margin                                             39.6%   40.1%   (50 bps)
SG&A                                               233.5   236.2   (1.1%)
% of net sales                                     33.2%   33.9%   (70 bps)
Restructuring and other special charges, net       --      2.1     n/m
Operating earnings                                 44.7    41.0    9.0%
% of net sales                                     6.4%    5.9%    50 bps
Net interest expense                               5.1     5.3     (3.8%)
Earnings from continuing operations before income  39.5    35.7    10.9%
taxes
Tax rate                                           31.6%   32.0%   (40 bps)
Net earnings (loss) from discontinued operations   0.2     --      n/m
Net earnings (loss)                                $27.3   $24.3   12.4%
Per diluted share                                  $0.63   $0.56   12.5%
Adjusted net earnings                              $27.3   $25.9   5.5%
Per diluted share                                  $0.63   $0.60   5.0%

Third Quarter Highlights

Famous Footwear third quarter 2013 record sales of $439.6 million were up 0.6%
year-over-year, with same-store-sales ^ up 4.9%. For the back-to-school
selling season, weeks 24 through 33, same-store-sales were up 5.6%. The strong
performance in the quarter was led by good sales growth in sport slides,
canvas shoe styles, sandals and lightweight running. During the quarter, the
company closed or relocated 22 stores and added 11 new stores, as average
revenue per square foot continued to improve.

Wholesale sales of $205.3 million were up 4.5% in the third quarter, excluding
sales from discontinued brands. For the Healthy Living platform, wholesale
sales of $106.6 million were down 5.6% (excluding sales from discontinued
brands) reflecting the shift of approximately $7 million of sales into the
second quarter from the third quarter, primarily for Naturalizer. On a
year-to-date basis, Healthy Living sales improved 1.2% over 2012. The
company’s Contemporary Fashion wholesale sales of $98.4 million were up 19.3%
in the third quarter, excluding sales from discontinued brands, with strong
double-digit growth from both Sam Edelman and Franco Sarto.

Consolidated gross profit of $278.2 million was down 0.4% in the third
quarter, and gross margin of 39.6% declined by approximately 50 basis points
versus the prior year. SG&A for the third quarter was $233.5 million, or 33.2%
of net sales, which was down approximately 70 basis points from 33.9% of net
sales in the prior year. For the quarter, operating margins improved 50 basis
points to 6.4%.

Inventory at the end of the third quarter was $544.6 million, up from $512.2
million in the prior year. Wholesale inventory was up 8.5%, while Famous
Footwear inventory was up 4.8%.

At quarter-end, Brown Shoe Company had no borrowings against its revolving
credit facility and $42.4 million in cash and cash equivalents. The company’s
debt-to-capital ratio improved to 30.6% from 41.7% in the third quarter of
2012.

Financial Review and 2013 Outlook

“To account for our strong performance year-to-date, we are raising our
adjusted diluted EPS guidance to a range of $1.36 to $1.40,” said Russ Hammer,
chief financial officer of Brown Shoe Company. “For the fourth quarter, we
expect to operate under the same level of caution as many of our peers, as
uncertainty around traffic, promotional activity and consumer sentiment
appears to be permeating the overall industry this holiday season.”

Metric                             FY’13
Consolidated net sales             $2.53 to $2.54 billion
Famous Footwear same-store sales   Up low-single digits
Wholesale Operations net sales     Up mid-single digits for continuing
                                    operations
Gross profit margin                Up approximately 10 basis points for
                                    continuing operations
SG&A                               $910 to $915 million
Non-recurring costs                $31 million
Net interest expense               $21 to $22 million
Effective tax rate, on adjusted    31% to 32%
basis
Earnings per diluted share         $0.82 to $0.86
Adjusted earnings per diluted      $1.36 to $1.40
share
Depreciation and amortization      $54 to $56 million
Capital expenditures               $54 to $56 million

Investor Conference Call

Brown Shoe Company will webcast an investor conference call at 9:00 a.m. ET
today, Nov. 26, 2013. The webcast and slides will be available at
investor.brownshoe.com/news/events. A live conference call will be available
at (877) 217-9089 for analysts in North America or (706) 679-1723 for
international analysts by using the conference ID 11145746.

A replay will be available for a limited period at
investor.brownshoe.com/news/events/archive. Investors may also access the
replay by dialing (855) 859-2056 in North America or (404) 537-3406
internationally and using the conference ID 11145746 through Tuesday, Dec. 3,
2013.

(1) Same-Store-Sales: For comparability purposes, same-store-sales for the
third quarter of 2013 are calculated based on retail sales for weeks 27
through 39 in 2013 as compared to weeks 28 through 40 in 2012. This adjustment
is due to the impact of the 53^rd week of sales in the fourth quarter of
fiscal 2012. The calculation for the third quarter of 2013 appropriately
reflects the change in same-store-sales on a true retail calendar basis.

Non-GAAP Financial Measures: In this press release, the company’s financial
results are provided both in accordance with generally accepted accounting
principles (GAAP) and using certain non-GAAP financial measures. In
particular, the company provides historic and estimated future gross profit,
operating earnings, net earnings and earnings per diluted share adjusted to
exclude certain gains, charges and recoveries, which are non-GAAP financial
measures. These results are included as a complement to results provided in
accordance with GAAP because management believes these non-GAAP financial
measures help identify underlying trends in the company’s business and provide
useful information to both management and investors by excluding certain items
that may not be indicative of the company’s core operating results. These
measures should not be considered a substitute for or superior to GAAP
results. Reconciliations to the applicable GAAP financial measures have been
included in the attached schedules.

Definitions

All references in this press release, outside of the condensed consolidated
financial statements that follow, unless otherwise noted, related to net
earnings attributable to Brown Shoe Company, Inc. and diluted earnings per
common share attributable to Brown Shoe Company, Inc. shareholders, are
presented as net earnings and earnings per diluted share, respectively.

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 Feb. 2, 2013, 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 $2.6 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, Famous.com, and
shoes.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 — Via Spiga,
Vince, Sam Edelman, Franco Sarto, Carlos Santana and Fergie Footwear — keep
fashionistas in step with the latest trends. At Brown Shoe Company, we inspire
people to feel good and live better... feet first!

SCHEDULE 1
                                                            
BROWN SHOE COMPANY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                                                                 
                     (Unaudited)                 (Unaudited)
                     13 Weeks Ended              39 Weeks Ended
(Thousands, except   November 2,   October 27,   November 2,     October 27,
per share data)      2013          2012          2013            2012
                                                                 
Net sales            $ 702,788     $ 695,985     $ 1,913,150     $ 1,859,061
Cost of goods sold    424,548     416,650     1,140,268     1,117,818 
                                                                 
Gross profit          278,240     279,335     772,882       741,243   
                                                                 
Selling and
administrative         233,572       236,196       678,522         659,377
expenses
Restructuring and
other special          -             2,146         1,262           19,660
charges, net
Impairment of
assets held for       -           -           4,660         -         
sale
                                                                 
Operating earnings    44,668      40,993      88,438        62,206    
                                                                 
Interest expense       (5,254  )     (5,398  )     (16,167   )     (17,079   )
Interest income       132         76          282           236       
                                                                 
Earnings before
income taxes from     39,546      35,671      72,553        45,363    
continuing
operations
                                                                 
Income tax            (12,495 )    (11,418 )    (24,522   )    (15,275   )
provision
                                                                 
Net earnings from
continuing            27,051      24,253      48,031        30,088    
operations
                                                                 
Discontinued
operations:
Earnings (loss)
from discontinued
operations, net of
tax (expense)          233           34            (4,784    )     (6,887    )
benefit of ($114),
$19, $6,057 and
$4,565,
respectively
Impairment of net
assets/disposition    -           -           (11,512   )    -         
of discontinued
operations
                                                                 
Net earnings
(loss) from           233         34          (16,296   )    (6,887    )
discontinued
operations
                                                                 
Net earnings          27,284      24,287      31,735        23,201    
                                                                 
Net loss
attributable to       (30     )    (5      )    (174      )    (251      )
noncontrolling
interests
                                                                 
Net earnings
attributable to      $ 27,314     $ 24,292     $ 31,909       $ 23,452    
Brown Shoe
Company, Inc.
                                                                 
Basic earnings
(loss) per common
share:
From continuing      $ 0.63        $ 0.57        $ 1.13          $ 0.72
operations
From discontinued     -           -           (0.39     )    (0.17     )
operations
Basic earnings per
common share
attributable to      $ 0.63       $ 0.57       $ 0.74         $ 0.55      
Brown Shoe
Company, Inc.
shareholders
                                                                 
Diluted earnings
(loss) per common
share:
From continuing      $ 0.62        $ 0.56        $ 1.12          $ 0.72
operations
From discontinued     0.01        -           (0.39     )    (0.17     )
operations
Diluted earnings
per common share
attributable to      $ 0.63       $ 0.56       $ 0.73         $ 0.55      
Brown Shoe
Company, Inc.
shareholders
                                                                 
Basic number of        41,447        40,745        41,288          40,618
shares
Diluted number of     41,766      40,935      41,571        40,721    
shares

SCHEDULE 2                                                   
                                                                 
BROWN SHOE COMPANY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                 
                           (Unaudited)                           
(Thousands)                November 2, 2013   October 27, 2012   February 2,
                                                                 2013
ASSETS
                                                                 
Cash and cash              $    42,406        $    40,884        $  68,223
equivalents
Receivables, net                112,491            113,519          111,392
Inventories, net                544,589            512,206          503,688
Prepaid expenses and            52,234             30,511           42,016
other current assets
Current assets -               181               56,365          47,109
discontinued operations
Total current assets           751,901           753,485         772,428
                                                                 
Property and equipment,         148,182            139,982          144,856
net
Goodwill and intangible         75,181             81,219           79,703
assets, net
Other assets                    111,647            134,664          119,695
Non current assets -           -                 54,754          54,577
discontinued operations
Total assets               $    1,086,911     $    1,164,104     $  1,171,259
                                                                 
LIABILITIES AND EQUITY
                                                                 
Borrowings under
revolving credit           $    -             $    110,000       $  105,000
agreement
Trade accounts payable          200,706            173,856          213,660
Other accrued expenses          151,142            145,687          137,190
Current liabilities -          2,110             13,935          13,259
discontinued operations
Total current                  353,958           443,478         469,109
liabilities
                                                                 
Long-term debt                  198,963            198,773          198,823
Deferred rent                   37,548             30,714           33,711
Other liabilities               44,483             51,999           36,719
Non current liabilities
- discontinued                 -                 7,203           6,996
operations
Total other liabilities        280,994           288,689         276,249
                                                                 
Total Brown Shoe
Company, Inc.                   451,301            431,138          425,129
shareholders’ equity
Noncontrolling interests       658               799             772
Total equity                   451,959           431,937         425,901
Total liabilities and      $    1,086,911     $    1,164,104     $  1,171,259
equity

SCHEDULE 3
                                                           
BROWN SHOE COMPANY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                              
                                           39 Weeks Ended
(Thousands)                                November 2, 2013   October 27, 2012
OPERATING ACTIVITIES:
Net earnings                               $  31,735          $   23,201
Adjustments to reconcile net earnings to
net cash provided by operating
activities:
Depreciation and amortization                 41,114              40,457
Amortization of debt issuance costs and       1,885               1,885
debt discount
Share-based compensation expense              4,066               4,776
Tax benefit related to share-based plans      (2,581      )       (889      )
Loss on disposal of facilities and            960                 2,177
equipment
Impairment charges for facilities and         1,072               2,481
equipment
Impairment of assets held for sale            4,660               -
Impairment of intangible assets               -                   5,777
Impairment of net assets/disposition of       11,512              -
discontinued operations
Net loss on sale of subsidiaries              576                 -
Deferred rent                                 3,837               (1,647    )
Provision for doubtful accounts               388                 398
Changes in operating assets and
liabilities, net of dispositions:
Receivables                                   (385        )       15,063
Inventories                                   (41,180     )       22,523
Prepaid expenses and other current and        (6,748      )       17,852
noncurrent assets
Trade accounts payable                        (12,933     )       (7,213    )
Accrued expenses and other liabilities        23,848              18,113
Other, net                                   159               (1,431    )
Net cash provided by operating               61,985            143,523   
activities
                                                              
INVESTING ACTIVITIES:
Capital expenditures                          (41,603     )       (44,517   )
Proceeds from sale of subsidiaries, net       69,347              -
of cash balance of $4,370
Acquisition cost                             -                 (5,000    )
Net cash provided by (used for)              27,744            (49,517   )
investing activities
                                                              
FINANCING ACTIVITIES:
Borrowings under revolving credit             966,000             582,000
agreement
Repayments under revolving credit             (1,071,000  )       (673,000  )
agreement
Dividends paid                                (9,073      )       (9,007    )
Issuance of common stock under                (2,406      )       (1,860    )
share-based plans, net
Tax benefit related to share-based plans     2,581             889       
Net cash used for financing activities       (113,898    )      (100,978  )
Effect of exchange rate changes on cash      (1,648      )      174       
and cash equivalents
Decrease in cash and cash equivalents         (25,817     )       (6,798    )
Cash and cash equivalents at beginning       68,223            47,682    
of period
                                                              
Cash and cash equivalents at end of        $  42,406         $   40,884    
period

SCHEDULE 4
                                                                                     
BROWN SHOE COMPANY, INC.
RECONCILIATION OF NET EARNINGS AND DILUTED EARNINGS PER SHARE
(GAAP BASIS) TO ADJUSTED NET EARNINGS AND ADJUSTED DILUTED     
EARNINGS PER SHARE (NON-GAAP BASIS)
                                                                                            
                           (Unaudited)                           (Unaudited)
                           13 Weeks Ended November 2, 2013       13 Weeks Ended October 27, 2012
                           Pre-Tax     Net Earnings              Pre-Tax     Net Earnings
                           Impact of   Attributable   Diluted    Impact of   Attributable   Diluted
(Thousands, except per     Charges/    to             Earnings  Charges/    to             Earnings
share data)                Other       Brown Shoe     Per        Other       Brown Shoe     Per
                           Items       Company,       Share      Items       Company,       Share
                                       Inc.                                  Inc.
                                                                                            
GAAP earnings                          $   27,314     $  0.63                $   24,292     $  0.56
                                                                                            
Charges/Other Items -
Continuing Operations:
Portfolio realignment
Business exits and cost    $ -             -             -       $ 2,282         1,425         0.04
reductions
                                                                                            
Charges/Other Items -
Discontinued Operations:
Portfolio realignment
Business exits and cost      -             -             -         274           180           -
reductions
                                                                                       
Total charges/other        $ -         $   -          $  -       $ 2,556     $   1,605        0.04
items
                                                                                            
Adjusted earnings                      $   27,314     $  0.63                $   25,897     $  0.60
                                                                                            
                                                                                            
                           39 Weeks Ended November 2, 2013       39 Weeks Ended October 27, 2012
                           Pre-Tax     Net Earnings              Pre-Tax     Net Earnings
                           Impact of   Attributable   Diluted    Impact of   Attributable   Diluted
(Thousands, except per     Charges/    to             Earnings  Charges/    to             Earnings
share data)                Other       Brown Shoe     Per        Other       Brown Shoe     Per
                           Items       Company,       Share      Items       Company,       Share
                                       Inc.                                  Inc.
                                                                                            
GAAP earnings                          $   31,909     $  0.73                $   23,452     $  0.55
                                                                                            
Charges/Other Items -
Continuing Operations:
Portfolio realignment
Business exits and cost    $ 1,262         803           0.02    $ 18,872        12,440        0.29
reductions
Non-cash                     4,660         4,660         0.11      -             -             -
impairments/dispositions
Organizational change       -            -            -        2,283        1,395        0.03
Total Continuing             5,922         5,463         0.13      21,155        13,835        0.32
Operations
                                                                                            
Charges/Other Items -
Discontinued Operations:
Portfolio realignment
Business exits and cost      13,233        6,414         0.13      8,130         4,999         0.12
reductions
Non-cash                     11,512        11,512        0.28      -             -             -
impairments/dispositions
ASG integration-related     -            -            -        675          441          0.01
costs
Total Discontinued           24,745        17,926        0.41      8,805         5,440         0.13
Operations
                                                                                       
Total charges/other        $ 30,667       23,389       0.54    $ 29,960       19,275       0.45
items
                                                                                            
Adjusted earnings                      $   55,298     $  1.27                $   42,727     $  1.00

SCHEDULE 5
                                                                                                                                 
BROWN SHOE COMPANY, INC.
SUMMARY FINANCIAL RESULTS BY SEGMENT
(Unaudited)
                                                                                                                                            

SUMMARY
FINANCIAL
RESULTS
                                                                                                                                            
                 Famous Footwear             Wholesale Operations       Specialty Retail          Other                      Consolidated
                 13 Weeks Ended              13 Weeks Ended              13 Weeks Ended            13 Weeks Ended             13 Weeks Ended
                 November 2,   October 27,   November 2,   October 27,   November     October      November     October 27,   November 2,   October 27,
                                                                         2,           27,          2,
(Thousands)       2013        2012        2013        2012        2013       2012       2013       2012        2013        2012    
                                                                                                                                            
Net Sales        $ 439,605     $ 436,812     $ 205,269     $ 196,371     $ 57,914     $ 62,802     $ -          $ -           $ 702,788     $ 695,985
                                                                                                                                            
Gross Profit     $ 187,286     $ 186,659     $ 65,177      $ 64,725      $ 25,777     $ 27,951     $ -          $ -           $ 278,240     $ 279,335
Adjusted Gross   $ 187,286     $ 186,659     $ 65,177      $ 64,761      $ 25,777     $ 28,051     $ -          $ -           $ 278,240     $ 279,471
Profit
                                                                                                                                            
Gross Profit       42.6    %     42.7    %     31.8    %     33.0    %     44.5   %     44.5   %     -            -             39.6    %     40.1    %
Rate
Adjusted Gross     42.6    %     42.7    %     31.8    %     33.0    %     44.5   %     44.7   %     -            -             39.6    %     40.2    %
Profit Rate
                                                                                                                                            
Operating
Earnings         $ 37,047      $ 35,525      $ 16,782      $ 15,169      $ 221        $ 1,771      $ (9,382 )   $ (11,472 )   $ 44,668      $ 40,993
(Loss)
Adjusted
Operating        $ 37,047      $ 35,881      $ 16,782      $ 16,641      $ 221        $ 2,138      $ (9,382 )   $ (11,385 )   $ 44,668      $ 43,275
Earnings
(Loss)
                                                                                                                                            
Operating
Earnings           8.4     %     8.1     %     8.2     %     7.7     %     0.4    %     2.8    %     -            -             6.4     %     5.9     %
(Loss) %
Adjusted
Operating          8.4     %     8.2     %     8.2     %     8.5     %     0.4    %     3.4    %     -            -             6.4     %     6.2     %
Earnings
(Loss) %
                                                                                                                                            
Same-store
Sales % (on a      4.9     %     6.8     %     -             -             0.6    %     8.4    %     -            -             -             -
13-week basis)
                                                                                                                                            
Number of          1,048         1,061         -             -             185          223          -            -             1,233         1,284
Stores
                                                                                                                         
                                                                                                                                            

RECONCILIATION
OF ADJUSTED
RESULTS
(NON-GAAP)
                                                                                                                                            
                 Famous Footwear             Wholesale Operations       Specialty Retail          Other                      Consolidated
                 13 Weeks Ended              13 Weeks Ended              13 Weeks Ended            13 Weeks Ended             13 Weeks Ended
                 November 2,   October 27,   November 2,   October 27,   November     October      November     October 27,   November 2,   October 27,
                                                                         2,           27,          2,
(Thousands)       2013        2012        2013        2012        2013       2012       2013       2012        2013        2012    
                                                                                                                                            
Gross Profit     $ 187,286     $ 186,659     $ 65,177      $ 64,725      $ 25,777     $ 27,951     $ -          $ -           $ 278,240     $ 279,335
                                                                                                                                            
Charges/Other
Items:
Portfolio
realignment
Business exits
and cost           -             -             -             36            -            100          -            -             -             136
reductions
                                                                                                                                   
Total
charges/other     -           -           -           36          -          100        -          -           -           136     
items
                                                                                                                                            
Adjusted Gross   $ 187,286    $ 186,659    $ 65,177     $ 64,761     $ 25,777    $ 28,051    $ -         $ -          $ 278,240    $ 279,471 
Profit
                                                                                                                                            
                                                                                                                                            
Operating
Earnings         $ 37,047      $ 35,525      $ 16,782      $ 15,169      $ 221        $ 1,771      $ (9,382 )   $ (11,472 )   $ 44,668      $ 40,993
(Loss)
                                                                                                                                            
Charges/Other
Items:
Portfolio
realignment
Business exits
and cost           -             356           -             1,472         -            367          -            87            -             2,282
reductions
                                                                                                                                   
Total
charges/other     -           356         -           1,472       -          367        -          87          -           2,282   
items
                                                                                                                                            
Adjusted
Operating        $ 37,047     $ 35,881     $ 16,782     $ 16,641     $ 221       $ 2,138     $ (9,382 )   $ (11,385 )   $ 44,668     $ 43,275  
Earnings
(Loss)

SCHEDULE 5 - CONTINUED
                                                                                                                                            
BROWN SHOE COMPANY, INC.
SUMMARY FINANCIAL RESULTS BY SEGMENT
(Unaudited)
                                                                                                                                                       

SUMMARY
FINANCIAL
RESULTS
                                                                                                                                                       
                 Famous Footwear                 Wholesale Operations       Specialty Retail              Other                       Consolidated
                 39 Weeks Ended                  39 Weeks Ended              39 Weeks Ended                39 Weeks Ended              39 Weeks Ended
                 November 2,     October 27,     November 2,   October 27,   November 2,    October 27,    November 2,   October 27,   November 2,     October 27,
(Thousands)       2013          2012          2013        2012        2013         2012         2013        2012        2013          2012      
                                                                                                                                                       
Net Sales        $ 1,180,143     $ 1,134,237     $ 567,334     $ 551,896     $ 165,673      $ 172,928      $ -           $ -           $ 1,913,150     $ 1,859,061
                                                                                                                                                       
Gross Profit     $ 523,022       $ 498,718       $ 178,859     $ 170,064     $ 71,001       $ 72,461       $ -           $ -           $ 772,882       $ 741,243
Adjusted Gross   $ 523,022       $ 498,718       $ 178,859     $ 171,263     $ 71,001       $ 72,757       $ -           $ -           $ 772,882       $ 742,738
Profit
                                                                                                                                                       
Gross Profit       44.3      %     44.0      %     31.5    %     30.8    %     42.9    %      41.9    %      -             -             40.4      %     39.9      %
Rate
Adjusted Gross     44.3      %     44.0      %     31.5    %     31.0    %     42.9    %      42.1    %      -             -             40.4      %     40.0      %
Profit Rate
                                                                                                                                                       
Operating
Earnings         $ 95,057        $ 74,365        $ 28,085      $ 25,833      $ (2,934  )    $ (7,551  )    $ (31,770 )   $ (30,441 )   $ 88,438        $ 62,206
(Loss)
Adjusted
Operating        $ 95,057        $ 82,052        $ 33,991      $ 32,321      $ (2,934  )    $ (3,647  )    $ (31,754 )   $ (27,365 )   $ 94,360        $ 83,361
Earnings
(Loss)
                                                                                                                                                       
Operating
Earnings           8.1       %     6.6       %     5.0     %     4.7     %     (1.8    %)     (4.4    %)     -             -             4.6       %     3.3       %
(Loss) %
Adjusted
Operating          8.1       %     7.2       %     6.0     %     5.9     %     (1.8    %)     (2.1    %)     -             -             4.9       %     4.5       %
Earnings
(Loss) %
                                                                                                                                                       
Same-store
Sales % (on a      4.3       %     4.6       %     -             -             1.7     %      3.2     %      -             -             -               -
39-week basis)
                                                                                                                                                       
Number of          1,048           1,061           -             -             185            223            -             -             1,233           1,284
Stores
                                                                                                                                    
                                                                                                                                                       

RECONCILIATION
OF ADJUSTED
RESULTS
(NON-GAAP)
                                                                                                                                                       
                 Famous Footwear                 Wholesale Operations       Specialty Retail              Other                       Consolidated
                 39 Weeks Ended                  39 Weeks Ended              39 Weeks Ended                39 Weeks Ended              39 Weeks Ended
                 November 2,     October 27,     November 2,   October 27,   November 2,    October 27,    November 2,   October 27,   November 2,     October 27,
(Thousands)       2013          2012          2013        2012        2013         2012         2013        2012        2013          2012      
                                                                                                                                                       
Gross Profit     $ 523,022       $ 498,718       $ 178,859     $ 170,064     $ 71,001       $ 72,461       $ -           $ -           $ 772,882       $ 741,243
                                                                                                                                                       
Charges/Other
Items:
Portfolio
realignment
Business exits
and cost           -               -               -             1,199         -              296            -             -             -               1,495
reductions
                                                                                                                                              
Total
charges/other     -             -             -           1,199       -            296          -           -           -             1,495     
items
                                                                                                                                                       
Adjusted Gross   $ 523,022      $ 498,718      $ 178,859    $ 171,263    $ 71,001      $ 72,757      $ -          $ -          $ 772,882      $ 742,738   
Profit
                                                                                                                                                       
                                                                                                                                                       
Operating
Earnings         $ 95,057        $ 74,365        $ 28,085      $ 25,833      $ (2,934  )    $ (7,551  )    $ (31,770 )   $ (30,441 )   $ 88,438        $ 62,206
(Loss)
                                                                                                                                                       
Charges/Other
Items:
Portfolio
realignment
Non-cash
impairment         -               -               4,660         -             -              -              -             -             4,660           -
charges
Business exits
and cost           -               7,687           1,246         6,488         -              3,904          16            793           1,262           18,872
reductions
Organizational     -               -               -             -             -              -              -             2,283         -               2,283
change
                                                                                                                                              
Total
charges/other     -             7,687         5,906       6,488       -            3,904        16          3,076       5,922         21,155    
items
                                                                                                                                                       
Adjusted
Operating        $ 95,057       $ 82,052       $ 33,991     $ 32,321     $ (2,934  )    $ (3,647  )    $ (31,754 )   $ (27,365 )   $ 94,360       $ 83,361    
Earnings
(Loss)

SCHEDULE 6
                                                              
BROWN SHOE COMPANY, INC.
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION
                                                                   
                         (Unaudited)                 (Unaudited)
                         13 Weeks Ended              39 Weeks Ended
                         November 2,   October 27,   November 2,   October 27,
(Thousands, except per     2013        2012       2013         2012   
share data)
                                                                   
Net earnings
attributable to Brown
Shoe Company, Inc.:
Net earnings from        $  27,051     $  24,253     $ 48,031      $  30,088
continuing operations
Net loss attributable
to noncontrolling           30            5            174            251
interests
Net earnings allocated
to participating           (1,097 )     (1,210 )    (1,386  )     (1,166 )
securities
Net earnings from          25,984      23,048     46,819       29,173 
continuing operations
                                                                   
Net earnings (loss)
from discontinued           233           34           (16,296 )      (6,887 )
operations
Net earnings allocated
to participating           (9     )     (2     )    -            -      
securities
Net earnings (loss)
from discontinued          224         32         (16,296 )     (6,887 )
operations
                                                                   
Net earnings
attributable to Brown
Shoe Company, Inc.
after allocation of      $  26,208    $  23,080    $ 30,523     $  22,286 
earnings to
participating
securities
                                                                   
                                                                   
Basic and diluted
common shares
attributable to Brown
Shoe Company, Inc.:
Basic common shares
for continuing
operations and              41,447        40,745       41,288         40,618
discontinued
operations
Dilutive effect of
share-based awards for
continuing operations      319         190        283          103    
and discontinued
operations
Diluted common shares
for continuing
operations and
discontinued               41,766      40,935     41,571       40,721 
operations
attributable to Brown
Shoe Company, Inc.
                                                                   
Basic earnings (loss)
per common share:
From continuing          $  0.63       $  0.57       $ 1.13        $  0.72
operations
From discontinued          -           -          (0.39   )     (0.17  )
operations
Basic earnings per
common share
attributable to Brown    $  0.63      $  0.57      $ 0.74       $  0.55   
Shoe Company, Inc.
shareholders
                                                                   
Diluted earnings
(loss) per common
share:
From continuing          $  0.62       $  0.56       $ 1.12        $  0.72
operations
From discontinued          0.01        -          (0.39   )     (0.17  )
operations
Diluted earnings per
common share
attributable to Brown    $  0.63      $  0.56      $ 0.73       $  0.55   
Shoe Company, Inc.
shareholders

SCHEDULE 7
                                                              
BROWN SHOE COMPANY, INC.
BASIC AND DILUTED ADJUSTED EARNINGS (LOSS) PER SHARE RECONCILIATION
                                                                   
                         (Unaudited)                 (Unaudited)
                         13 Weeks Ended              39 Weeks Ended
                         November 2,   October 27,   November 2,   October 27,
(Thousands, except per    2013        2012        2013         2012   
share data)
                                                                   
Adjusted net earnings
attributable to Brown
Shoe Company, Inc.:
Adjusted net earnings
from continuing          $ 27,051      $ 25,678      $ 53,493      $  43,923
operations
Net loss attributable
to noncontrolling          30            5             174            251
interests
Net earnings allocated
to participating          (1,097 )     (1,281 )     (2,336 )      (2,114 )
securities
Adjusted net earnings
from continuing           25,984      24,402      51,331       42,060 
operations
                                                                   
Adjusted net earnings
(loss) from                233           214           1,630          (1,447 )
discontinued
operations
Net earnings allocated
to participating          (9     )     (11    )     (71    )      -      
securities
Net earnings (loss)
from discontinued         224         203         1,559        (1,447 )
operations
                                                                   
Adjusted net earnings
attributable to Brown
Shoe Company, Inc.
after allocation of      $ 26,208     $ 24,605     $ 52,890     $  40,613 
earnings to
participating
securities
                                                                   
                                                                   
Basic and diluted
common shares
attributable to Brown
Shoe Company, Inc.:
Basic common shares
for continuing
operations and             41,447        40,745        41,288         40,618
discontinued
operations
Dilutive effect of
share-based awards for
continuing operations     319         190         283          103    
and discontinued
operations
Diluted common shares
for continuing
operations and
discontinued              41,766      40,935      41,571       40,721 
operations
attributable to Brown
Shoe Company, Inc.
                                                                   
Basic adjusted
earnings (loss) per
common share:
From continuing          $ 0.63        $ 0.60        $ 1.24        $  1.04
operations
From discontinued         -           -           0.04         (0.04  )
operations
Basic adjusted
earnings per common
share attributable to    $ 0.63       $ 0.60       $ 1.28       $  1.00   
Brown Shoe Company,
Inc. shareholders
                                                                   
Diluted adjusted
earnings (loss) per
common share:
From continuing          $ 0.62        $ 0.60        $ 1.23        $  1.04
operations
From discontinued         0.01        -           0.04         (0.04  )
operations
Diluted adjusted
earnings per common
share attributable to    $ 0.63       $ 0.60       $ 1.27       $  1.00   
Brown Shoe Company,
Inc. shareholders

Contact:

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