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Exhibit Index
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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 1, 2000
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from to .
Commission File Number: 1-4404
THE STRIDE RITE CORPORATION
(Exact name of registrant as specified in its charter)
Massachusetts 04-1399290
(State or other jurisdiction) (I.R.S. Employer Identified No.)
191 Spring Street, Lexington, Massachusetts 02421
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (617)824-6000
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange
Title of each class on which registered
-------------------------------- -------------------
Common stock, $.25 par value New York Stock Exchange
Preferred Stock Purchase Rights New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the Registrant (1) has filed all reports
required by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such report), and (2) has been subject to such filing
requirements for the past 90 days.
Yes (X) No ( )
-
As of October 9, 2000, 41,698,051 shares of the Registrant's common stock, $.25
par value, and the accompanying Preferred Stock Purchase Rights were
outstanding.
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. Financial Statements
THE STRIDE RITE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
<TABLE>
<CAPTION>
September 1, August 27,
2000 December 3, 1999
(Unaudited) 1999 (Unaudited)
-------------- -------------- --------------
Assets
Current Assets:
<S> <C> <C> <C>
Cash and cash equivalents $42,762 $ 57,186 $ 44,558
Accounts and notes
receivable, net 82,578 47,478 86,166
Inventories 78,766 121,167 98,578
Deferred income taxes 26,489 26,303 25,796
Other assets 4,587 4,895 3,392
-------- -------- --------
Total current assets 235,182 257,029 258,490
Property and equipment, net 75,326 67,425 65,865
Other assets 21,260 21,738 23,675
-------- ------- --------
Total assets $331,768 $346,192 $348,030
======== ======== ========
</TABLE>
The accompanying notes are an integral part of the condensed
consolidated financial statements.
2
<PAGE>
PART I - FINANCIAL INFORMATION (Continued)
THE STRIDE RITE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(Dollars in Thousands)
<TABLE>
<CAPTION>
September 1, August 27,
2000 December 3, 1999
(Unaudited) 1999 (Unaudited)
--------------- -------------- -------------
Liabilities and Stockholders' Equity
Current Liabilities:
<S> <C> <C> <C>
Accounts payable $ 20,716 $ 41,557 $21,394
Income taxes payable 23,828 22,059 24,822
Accrued expenses and other
liabilities 25,552 26,862 31,761
-------- -------- ---------
Total current liabilities 70,096 90,478 77,977
Deferred income taxes 5,109 5,219 6,134
Stockholders' Equity:
Preferred stock,
$1 par value
Shares authorized -
1,000,000
Shares issued - None - - -
Common stock, $.25 par
value
Shares authorized -
135,000,000
Shares issued -
56,946,544 14,237 14,237 14,237
Capital in excess of par
value 20,275 20,738 21,833
Retained earnings 374,558 355,158 357,003
Less cost of 14,512,359
shares of common stock
held in treasury
(12,312,461 on December
3, 1999 and 10,549,467
on August 27, 1999) (152,507) (139,638) (129,154)
--------- --------- ---------
Total stockholders' equity 256,563 250,495 263,919
--------- --------- ---------
Total liabilities and
stockholders' equity $ 331,768 $ 346,192 $348,030
========= ========= =========
</TABLE>
The accompanying notes are an integral part of the condensed
consolidated financial statements.
3
<PAGE>
PART I - FINANCIAL INFORMATION (Continued)
THE STRIDE RITE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the periods ended September 1, 2000 and August 27, 1999
(In Thousands Except Per Share Data)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------ -----------------
September 1 August 27 September 1 August 27
2000 1999 2000 1999
----------- --------- ---------- ----------
<S> <C> <C> <C> <C>
Net sales $144,760 $155,952 $452,956 $470,390
Cost of sales 92,700 98,157 288,135 296,846
Selling and
administrative
expenses 40,242 39,501 124,361 129,362
Nonrecurring charge - 3,254 - 3,254
-------- -------- -------- --------
Operating income 11,818 15,040 40,460 40,928
Other income
(expense):
Interest income 1,244 1,920 2,888 3,585
Interest expense (394) (402) (1,548) (1,706)
Other, net (38) (187) (48) (834)
-------- -------- -------- --------
812 1,331 1,292 1,045
-------- -------- -------- --------
Income before
income taxes 12,630 16,371 41,752 41,973
Provision for
income taxes 4,848 6,258 15,874 15,948
-------- -------- -------- --------
Net income $ 7,782 $ 10,113 $ 25,878 $ 26,025
======== ======== ======== ========
Net income per
common share:
Diluted $ .18 $ .22 $ .59 $ .56
======== ======== ======== ========
Basic $ .18 $ .22 $ .60 $ .56
======== ======== ======== ========
Dividends per
common share $ .05 $ .05 $ .15 $ .15
======== ======== ======== ========
Average common
shares used in per
share computations:
Diluted 43,167 46,644 43,582 46,671
======== ======== ======== ========
Basic 43,004 46,440 43,402 46,418
======== ======== ======== ========
</TABLE>
Theaccompanying notes are an integral part of the Condensed
consolidated financial statements.
4
<PAGE>
PART I - FINANCIAL INFORMATION (Continued)
THE STRIDE RITE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
For the nine months ended September 1, 2000 and August 27, 1999
(Dollars in Thousands)
<TABLE>
<CAPTION>
September 1, August 27,
2000 1999
-------------- ------------
Cash was provided from (used for) Operations:
<S> <C> <C>
Net income $25,878 $26,025
Adjustments to reconcile to net cash provided
from (used for) operations:
Depreciation and amortization 9,067 7,497
Deferred income taxes, net (296) (946)
Compensation expense related to executive
stock plans 171 296
Equity in loss of affiliate - 813
Loss on disposal of property and
equipment 593 935
Changes in:
Accounts and notes receivable (35,100) (29,691)
Inventories 42,401 29,894
Other current assets 308 2,706
Accounts payable, income taxes, accrued
expenses and other current liabilities (20,391) (7,393)
--------- ---------
Net cash provided from operations 22,631 30,136
--------- ---------
Investments:
Additions to property and equipment (17,362) (15,804)
Sales(purchases)of marketable securities, net 7 (320)
Decrease (increase) in other assets 273 (4,857)
--------- ---------
Net cash used for investments (17,082) (20,981)
--------- ---------
Financing:
Proceeds from sale of stock under stock plans 389 385
Cash dividends paid (6,581) (6,961)
Repurchase of common stock (13,781) (448)
--------- ---------
Net cash used for financing (19,973) (7,024)
--------- ---------
Net increase(decrease)in cash and cash
equivalents (14,424) 2,131
Cash and cash equivalents at beginning of the
period 57,186 42,427
--------- ---------
Cash and cash equivalents at end of the period $42,762 $44,558
========= =========
</TABLE>
Theaccompanying notes are an integral part of the condensed
consolidated financial statements.
5
<PAGE>
PART I - FINANCIAL INFORMATION (Continued)
THE STRIDE RITE CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1
The financial information included in this Form 10-Q of The Stride Rite
Corporation (the "Company") for the periods ended September 1, 2000 and August
27, 1999 is unaudited and subject to year-end adjustments. However, such
information includes all adjustments (including all normal recurring
adjustments) which, in the opinion of management, are considered necessary for a
fair presentation of the consolidated results for those periods. The results of
operations for the periods ended September 1, 2000 and August 27, 1999 are not
necessarily indicative of the results of operations that may be expected for the
complete fiscal year. The year-end condensed balance sheet data was derived from
audited financial statements, but does not include all disclosures required by
generally accepted accounting principles. The Company filed audited consolidated
financial statements for the year ended December 3, 1999 on Form 10-K which
included all information and footnotes necessary for such presentation.
The Company's preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingency assets and liabilities at the dates of the financial
statements and the reported amounts of revenues and expenses during the
respective periods. The most significant estimates included in these financial
statements include valuation allowances and reserves for accounts receivable,
inventory and income taxes. Actual results could differ from those estimates.
NOTE 2
In the third quarter of fiscal 1999, the Company recorded pre-tax
nonrecurring charges of $3,254,000 related to a restructuring of corporate and
divisional operations. The following table summarizes activity with respect to
the accrued liabilities related to these nonrecurring charges during the first
nine months of fiscal 2000:
Balance at beginning of year $1,517
Amounts charged against accrual (912)
------
Balance at September 1, 2000 $605
======
The Company expects to complete all payments related to this restructuring
during the fourth quarter of fiscal 2000.
6
<PAGE>
PART I - FINANCIAL INFORMATION (Continued)
THE STRIDE RITE CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3
Basic earnings per share excludes dilution and is computed by dividing net
earnings available to common stockholders by the weighted average number of
common shares outstanding for the period. Diluted earnings per share reflects
the potential dilution that could occur if options to issue common stock were
exercised.
The following is a reconciliation of the number of shares used in the
basic and diluted earnings per share computations (shares in thousands):
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------ -----------------
Sept. 1, Aug. 27, Sept. 1, Aug. 27,
2000 1999 2000 1999
---- ---- ---- ----
Net income applicable to common
<S> <C> <C> <C> <C>
shares $ 7,782 $ 10,113 $ 25,878 $ 26,025
Calculation of shares:
Weighted average number of common
shares outstanding(basic) 43,004 46,440 43,402 46,418
Common shares attributable to
assumed exercise of dilutive
stock options and stock
purchase rights using the
treasury stock method 163 204 180 253
-------- -------- -------- --------
Average common shares and common
equivalents outstanding during
the period (diluted) 43,167 46,644 43,582 46,671
======== ======== ======== ========
Net income per common share (basic) $ .18 $ .22 $ .60 $ .56
======== ======== ======== ========
Net income per common share(diluted) $ .18 $ .22 $ .59 $ .56
======== ======== ======== ========
</TABLE>
The following options were not included in the computation of diluted EPS
because the options' exercise price was greater than the average market price of
the common shares:
<TABLE>
<CAPTION>
Third Quarter First Nine Months
---------------------------------------------
2000 1999 2000 1999
--------- -------- ----------- -----------
Options to purchase shares of
<S> <C> <C> <C> <C>
common stock (in thousands) 3,378 2,494 3,273 2,463
</TABLE>
7
<PAGE>
PART I - FINANCIAL INFORMATION (Continued)
THE STRIDE RITE CORPORATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
This form 10-Q contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. We caution investors that any forward-looking statements
presented in this report and presented elsewhere by management from time to time
are based on management's beliefs and assumptions made by, and information
currently available to, management. When used, the words "anticipate",
"estimate", "project", "should", "expect" and similar expressions are intended
to identify forward-looking statements. Such statements are subject to risks,
uncertainties and assumptions and are not guarantees of future performance,
which may be affected by various trends and factors that are beyond our control.
Should one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from
those anticipated, estimated or projected. Accordingly, past results and trends
should not be used by investors to anticipate future results or trends. Some of
the key factors that may have a direct bearing on our results are presented in
the Company's Form 10-K for the fiscal year ended December 3, 1999 which was
filed with the Securities and Exchange Commission.
Results of Operations
The following table summarizes the Company's performance for the third
quarter and first nine months of fiscal 2000 as compared to the results for the
same periods in fiscal 1999:
<TABLE>
<CAPTION>
Increase (Decrease) Percent vs. 1999 results:
Third Quarter Nine Months
<S> <C> <C>
Net sales (7.2)% (3.7)%
Gross profit (9.9)% (5.0)%
Selling and administrative expenses 1.9% (3.9)%
Operating income before nonrecurring
charges (35.4)% (8.4)%
Operating income (21.4)% (1.1)%
Income before income taxes (22.9)% (0.5)%
Net income (23.0)% (0.6)%
</TABLE>
<TABLE>
<CAPTION>
Operating Ratios as a Percent to Net Sales:
Third Quarter Nine Months
--------------------------------------
2000 1999 2000 1999
------- ------- --------- ---------
<S> <C> <C> <C> <C>
Gross profit 36.0% 37.1% 36.4% 36.9%
Selling and administrative expenses 27.8% 25.3% 27.5% 27.5%
Operating income before nonrecurring
charges 8.2% 11.7% 8.9% 9.4%
Operating income 8.2% 9.6% 8.9% 8.7%
Income before income taxes 8.7% 10.5% 9.2% 8.9%
Net income 5.4% 6.5% 5.7% 5.5%
</TABLE>
8
<PAGE>
PART I - FINANCIAL INFORMATION (Continued)
THE STRIDE RITE CORPORATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
Net Sales
Net sales in the third quarter of fiscal 2000 decreased $11.2 million or
7.2% below the net sales level for the same period of fiscal 1999. The major
reason for the decline was a shortfall in reorders, an important component of
third quarter shipments. In the third quarter of 2000, wholesale brand revenues
decreased 10%, while retail sales of Company-owned stores increased 10% from the
same period in 1999. Over the first nine months of 2000, consolidated net sales
decreased by $17.4 million, 3.7% below the sales for the comparable period of
1999. Revenues related to the Company's wholesale brands declined 6% during the
first nine months of 2000, while retail sales increased 8%. Unit shipments of
current line merchandise for the wholesale brands during the first nine months
of 2000 were 2.4% below the comparable period in 1999. The Company's average
selling price was also lower in the first nine months of 2000, decreasing 2%
from last year. Sales of discontinued products increased $6.3 million in the
first nine months of 2000 as compared to the comparable period in 1999 as the
Company continues to actively monitor asset management.
Sales of Stride Rite Children's Group increased 1% in the third quarter of
fiscal 2000, the result of a 10% increase in retail sales and a 7% decrease in
sales to independent accounts, as compared to the same period in fiscal 1999.
During the third quarter of 2000, sales at comparable, company-owned retail
stores increased 2.3% from 1999. In fiscal 2000, comparable store sales
benefited from the later fiscal calendar, which shifted an important week in the
back-to-school season into the third quarter. On a calendar adjusted basis,
comparable store sales in the third quarter were 2% below 1999. For the first
nine months of 2000, sales of the Stride Rite Children's Group increased 4% from
the same period in 1999, with the retail revenues increasing 8% and the
wholesale portion of the brand posting a 1% sales gain. Sales of the Stride Rite
brand in the first nine months of 2000 were helped by the introduction of a new
line of baby footwear which features the Natural Motion System(TM) that is
designed to promote natural development and walking patterns for children. At
the end of the third quarter of 2000, the Company operated 199 stores, compared
to 205 stores open at the end of the third quarter in 1999. The Company opened
20 new stores and sold or closed 13 underperforming locations in the first nine
months of 2000.
In the third quarter of fiscal 2000, sales of the Keds brand were 12%
lower than the comparable period of 1999. Reorders in the quarter were 29% below
last year due to a major product transition within the brand and generally weak
sales trends in the department store sector. For the first nine months of 2000,
Keds' net sales decreased 4% as compared to 1999, with the sales of women's and
children's products decreasing 9% and 10%, respectively, from the first nine
months of 1999, somewhat offset by increased sales of discontinued styles. The
Keds brand completed a major product transition in the first nine months of 2000
by phasing out the Ready to Wear(TM) product line, a basic women's and
children's line that was first introduced in fiscal 1997. Keds is increasing
marketing promotions in the second half of 2000 to support the further growth of
the Keds Stretch(TM) product line and the introduction of new women's casual
styles for the Fall season.
9
<PAGE>
PART I - FINANCIAL INFORMATION (Continued)
THE STRIDE RITE CORPORATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
Sales of Tommy Hilfiger footwear products in the third quarter of fiscal
2000 decreased 8% as compared to the same period in 1999. For the first nine
months of 2000, sales of Tommy Hilfiger footwear decreased 10% as compared to
the same period in 1999. The general downward trend of department store retail
sales, which represents the vast majority of Tommy Hilfiger footwear sales,
adversely affected results. However, overall unit shipments of current
merchandise were slightly above the comparable three and nine-month periods of
1999, with a shift to lower-priced product resulting in the decreased sales.
Sales of the Sperry brand decreased 10% in the third quarter of fiscal
2000 to bring sales of the brand for the first nine months of this year to 2%
below the comparable period of fiscal 1999. Sperry's third quarter sales were
also negatively impacted by lower reorders and by reduced sales across all of
the brand's product lines. International revenues in the third quarter of 2000
were below the comparable period of 1999 by $0.5 million or 8%. For the first
nine months of 2000, International revenues declined $2.6 million or 12% from
the comparable period of 1999, as the Company continued to change business
relationships to emphasize license royalty arrangements.
Gross Profit
During the first nine months of fiscal 2000, gross profit decreased $8.7
million or 5% below the same period in fiscal 1999. This decrease compares to
the net sales decrease of 3.7% for the same period. The consolidated gross
profit percent in the first nine months of 2000 decreased 0.5 percentage points,
finishing at 36.4% in 2000 compared to 36.9% in 1999. Gross profit performance
in the third quarter of 2000 deteriorated over the same period in 1999, 36.0% in
2000 compared to 37.1% in the 1999 third quarter. The Company's gross profit
performance in the nine month period was negatively impacted by 1.4 percentage
points due to increased sales allowances, inventory obsolescence charges and
retail markdowns. The increased significance of retail sales, which typically
yields a higher gross profit percentage, to overall consolidated sales had a
favorable impact on gross profit performance during the first half of 2000. The
Company's LIFO provision had a negative impact on gross profit comparisons for
the first nine months of 2000, with LIFO decreasing gross profit by $1.4 million
(0.3% of net sales) in 2000 compared to an increase of $0.1 million (less than
1% of net sales) in 1999.
Operating Costs
Selling and administrative expenses in the first nine months of fiscal
2000 decreased $5 million or 3.9% from the spending level in the first nine
months of fiscal 1999. Operating costs as a percentage of sales in the first
nine months of 2000 were identical to the same period in 1999 (27.5% in both
2000 and 1999). The expense level in the first half of fiscal 2000 had been
favorably impacted by the Company's restructuring efforts, which eliminated
10
<PAGE>
PART I - FINANCIAL INFORMATION (Continued)
THE STRIDE RITE CORPORATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
approximately 125 administrative staff positions during the third quarter of
1999. The Company recorded a nonrecurring charge of $3.3 million related to this
restructuring in the third quarter of fiscal 1999. Higher retail store expenses,
primarily related to the start-up of new stores, increased overall operating
expenses by 0.4 percentage points during the first nine months of 2000.
Advertising expense represented 6.1% of net sales in the first nine months of
2000, which was below the spending rate of 6.6% for 1999. Advertising costs in
the first nine months of fiscal 2000 decreased $3.3 million or 10.6%, with most
of the cost decrease occurring in the first half of the year. This advertising
cost decrease is largely due to a shift from television to print media with
respect to the Keds brand, resulting in an annual spending plan that was lower
than 1999. In fiscal 2000, the Company is also incurring advertising costs on a
more balanced basis between the Spring and Fall seasons.
Other Income and Taxes
Other income (expense) increased pre-tax income by $1.3 million in the
first nine months of fiscal 2000 compared to an increase of $1.0 million in the
similar period of fiscal 1999. Interest income for the first nine months of 2000
was $2.9 million, down from the $3.6 million for the first nine months of 1999.
Interest expense in the first nine months of 2000 decreased slightly to $1.5
million compared to $1.7 million in 1999. Lower average borrowing levels were
nearly offset by an increase in the Company's average interest rate, 7.5% in the
first nine months of 2000 compared to 6.1% in 1999. Average short-term
borrowings in the first nine months of 2000 were $26.3 million, 29% below the
average borrowings of $37.2 million in the comparable period of 1999.
The provision for income taxes decreased slightly in the first nine months
of fiscal 2000 as compared to the similar period in fiscal 1999, primarily due
to the lower pre-tax income earned in the period. The effective income tax rate
of 38.0% was the same in the nine-month periods of both fiscal years.
Net Income
Net income for the first nine months of fiscal 2000 decreased $0.1
million, down 0.6% from the income earned in the same period of fiscal 1999.
Lower operating expenses, increased other income and the absence of one-time
charges in fiscal 2000 could not offset the impact of lower net sales and a
decreased gross profit percent, which were the primary factors for the decreased
earnings in the first nine months of fiscal 2000. The Company's return on net
sales increased to 5.7% in the first nine months of 2000 as compared to 5.5% in
1999.
Liquidity and Capital Resources
At September 1, 2000, the Company's balance sheet reflects a current ratio
of 3.4 to 1 with no long-term debt. The Company's cash and cash equivalents
totaled $42.8 million at the end of the latest quarter, below the
11
<PAGE>
PART I - FINANCIAL INFORMATION (Continued)
THE STRIDE RITE CORPORATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
prior year's cash and cash equivalents total of $44.6 million. When combined
with intermediate-term fixed income investments, which are included in other
assets, total available cash and investments amounted to $54 million at
September 1, 2000 compared to $55.4 million in 1999. The Company uses its $75
million revolving credit facility to fund seasonal working capital needs. No
borrowings under this line of credit were outstanding as of September 1, 2000 or
August 27, 1999.
During the first nine months of fiscal 2000, the Company generated $22.6
million of cash from operations. This positive cash flow amount was below the
$30.1 million of cash provided from operations during the same period in fiscal
1999. At September 1, 2000, accounts receivable and inventory levels totaled
$161.3 million, a decrease of $23.4 million or 13% below the $184.7 million
asset amount at the end of the third quarter of 1999. Accounts receivable at the
end of the third quarter of 2000 decreased $3.6 million or 4.2% compared to the
prior year, somewhat less than the wholesale businesses' sales decrease of 10.4%
in the third quarter of 2000. Inventories were also lower at the end of the
third quarter of 2000, down $19.8 million or 20.1% from the 1999 level, due to
an overall reduction in the inventory of Keds basic styles compared to last
year, and a more focused product line in the Stride Rite brand.
Additions to property and equipment totaled $17.4 million in the first
nine months of fiscal 2000 compared to $15.8 million for the same period in
fiscal 1999. In the fourth quarter of 2000, the Company expects to complete an
expansion of its Huntington, Indiana distribution facility, which will allow for
the termination of a higher cost outsourcing arrangement for one of its brands.
Capital expenditures related to this expansion are planned at $6 million. During
the first nine months of 2000, the Company continued its share repurchase
program, buying back 2.3 million shares of common stock at a cost of $13.8
million. At September 1, 2000, the Company has three million shares remaining on
the repurchase authorization approved by the Board of Directors in December
1999.
12
<PAGE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits. The following exhibits are contained in this
--------
report:
Exhibit No. Description of Exhibit
27 Financial Data Schedule
(b) Reports on Form 8-K
There were no reports filed on Form 8-K during the most recent
quarterly period.
13
<PAGE>
THE STRIDE RITE CORPORATION
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned duly authorized.
THE STRIDE RITE CORPORATION
---------------------------
(Registrant)
Date: October 13, 2000 By: /S/ John M. Kelliher
---------------------------
John M. Kelliher
Chief Financial Officer
14
<PAGE>
THE STRIDE RITE CORPORATION
INDEX TO EXHIBITS
Exhibit Sequential Page No.
No.
27 Financial Data Schedule 16
15
<PAGE>
