1 of 17 pages
Exhibit Index
Appears on Page 16
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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 June 2, 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 July 7, 2000, 43,073,852 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>
June 2, May 28,
2000 December 3, 1999
(Unaudited) 1999 (Unaudited)
-------------- -------------- --------------
Assets
Current Assets:
<S> <C> <C> <C>
Cash and cash equivalents $ 40,911 $ 57,186 $ 30,560
Accounts and notes
receivable, net 82,976 47,478 85,456
Inventories 79,021 121,167 110,472
Deferred income taxes 26,303 26,303 24,758
Other assets 4,525 4,895 3,583
-------- ------- -------
Total current assets 233,736 257,029 254,829
Property and equipment, net 72,064 67,425 63,626
Other assets 20,793 21,738 24,338
-------- -------- --------
Total assets $326,593 $346,192 $342,793
======== ======== ========
</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>
June 2, May 28,
2000 December 3, 1999
(Unaudited) 1999 (Unaudited)
--------------- -------------- -------------
Liabilities and Stockholders' Equity
Current Liabilities:
<S> <C> <C> <C>
Accounts payable $ 16,964 $ 41,557 $ 27,516
Income taxes payable 22,701 22,059 20,742
Accrued expenses and other
liabilities 26,890 26,862 31,946
-------- -------- ----------
Total current liabilities 66,555 90,478 80,204
Deferred income taxes 5,219 5,219 6,042
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 20,721 20,738 21,862
Retained earnings 368,920 355,158 349,212
Less cost of 13,874,260
shares of common stock
held in treasury
(12,312,461 on December
3, 1999 and 10,504,209
on May 28, 1999) (149,059) (139,638) (128,764)
--------- --------- ---------
Total stockholders' equity 254,819 250,495 256,547
--------- --------- ---------
Total liabilities and
stockholders' equity $ 326,593 $ 346,192 $ 342,793
========= ========= =========
</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 June 2, 2000 and May 28, 1999
(In Thousands Except Per Share Data)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------ ----------------
June 2, May 28, June 2, May 28,
2000 1999 2000 1999
------------ ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net sales $156,533 $166,253 $308,196 $314,437
Cost of sales 98,669 105,012 195,435 198,689
Selling and
administrative expenses 40,855 45,320 84,119 89,860
-------- -------- -------- --------
Operating income 17,009 15,921 28,642 25,888
Other income(expense):
Interest income 783 707 1,644 1,665
Interest expense (681) (658) (1,154) (1,304)
Other, net (51) (282) (10) (647)
-------- -------- -------- --------
51 (233) 480 (286)
-------- -------- -------- --------
Income before income
taxes 17,060 15,688 29,122 25,602
Provision for income
taxes 6,451 5,925 11,026 9,690
-------- -------- -------- --------
Net income $ 10,609 $ 9,763 $ 18,096 $ 15,912
======== ======== ======== ========
Net income per common share:
Diluted $ .24 $ .21 $ .41 $ .34
======== ======== ======== ========
Basic $ .25 $ .21 $ .42 $ .34
======== ======== ======== ========
Dividends per common
share $ .05 $ .05 $ .10 $ .10
======== ======== ======== ========
Average common shares
used in per share
computations:
Diluted 43,474 46,840 43,789 46,685
======== ======== ======== ========
Basic 43,221 46,422 43,600 46,408
======== ======== ======== ========
</TABLE>
The accompanying 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 six months ended June 2, 2000 and May 28, 1999
(Dollars in Thousands)
<TABLE>
<CAPTION>
June 2, 2000 May 28,1999
--------------- -------------
Cash was provided from (used for)
Operations:
<S> <C> <C>
Net income $ 18,096 $ 15,912
Adjustments to reconcile to net cash provided
from (used for) operations:
Depreciation and amortization 6,070 5,190
Compensation expense related to executive
stock plans 117 228
Equity in loss of affiliate - 813
Loss on disposal of property and
equipment 177 934
Changes in:
Accounts and notes receivable (35,498) (28,981)
Inventories 42,146 18,000
Other current assets 370 2,514
Accounts payable, income taxes, accrued
expenses and other current liabilities (23,897) (5,095)
-------- --------
Net cash provided from operations 7,581 9,515
-------- --------
Investments:
Additions to property and equipment (10,754) (11,264)
Net sales(purchases) of marketable securities 1,091 (772)
Increase in other assets (278) (5,062)
-------- --------
Net cash used for investments (9,941) (17,098)
-------- --------
Financing:
Proceeds from sale of stock under stock plans - 355
Cash dividends paid (4,427) (4,639)
Repurchase of common stock (9,488) -
-------- --------
Net cash used for financing (13,915) (4,284)
-------- --------
Net decrease in cash and cash equivalents (16,275) (11,867)
Cash and cash equivalents at beginning of the
period 57,186 42,427
-------- --------
Cash and cash equivalents at end of the period $ 40,911 $ 30,560
======== ========
</TABLE>
The accompanying 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 June 2, 2000 and May 28, 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 June 2, 2000 and May 28, 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 reported
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 during the first
six months of fiscal 2000:
<TABLE>
<S> <C>
Balance at beginning of year $1,517
Amounts charged against accrual (857)
------
Balance at June 2, 2000 $660
======
</TABLE>
The Company expects to complete all payments related to this restructuring
during the third 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 Six Months Ended
------------------ ----------------
June 2, May 28, June 2, May 28,
2000 1999 2000 1999
---- ---- ---- ----
Net income applicable to common
<S> <C> <C> <C> <C>
shares $ 10,609 $ 9,763 $ 18,096 $ 15,912
Calculation of shares:
Weighted average number of common
shares outstanding(basic) 43,221 46,422 43,600 46,408
Common shares attributable to
assumed exercise of dilutive
stock options and stock
purchase rights using the
treasury stock method 253 418 189 277
-------- -------- -------- --------
Average common shares and common
equivalents outstanding during
the period (diluted) 43,474 46,840 43,789 46,685
======== ======== ======== ========
Net income per common share (basic) $ .25 $ .21 $ .42 $ .34
======== ======== ======== ========
Net income per common share(diluted) $ .24 $ .21 $ .41 $ .34
======== ======== ======== ========
</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>
Second Quarter First Six Months
------------------- -----------------------
2000 1999 2000 1999
-------- -------- --------- ---------
Options to purchase shares of
<S> <C> <C> <C> <C>
common stock (in thousands) 2,870 708 3,221 2,142
</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 second
quarter and first six months of fiscal 2000 as compared to the results for the
same periods in fiscal 1999:
<TABLE>
Increase (Decrease) Percent vs. 1999 results:
<CAPTION>
Second Quarter Six Months
-------------- ----------
<S> <C> <C>
Net sales (5.8)% (2.0)%
Gross profit (5.5)% (2.6)%
Selling and administrative expenses (9.9)% (6.4)%
Operating income 6.8% 10.6%
Income before income taxes 8.7% 13.7%
Net income 8.7% 13.7%
</TABLE>
<TABLE>
Operating Ratios as a Percent to Net Sales:
<CAPTION>
Second Quarter Six Months
-------------- ----------
2000 1999 2000 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Gross profit 37.0% 36.8% 36.6% 36.8%
Selling and administrative expenses 26.1% 27.3% 27.3% 28.6%
Operating income 10.9% 9.6% 9.3% 8.2%
Income before income taxes 10.9% 9.4% 9.4% 8.1%
Net income 6.8% 5.9% 5.9% 5.1%
</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 second quarter of fiscal 2000 decreased $9.7 million or
5.8% below the net sales level for the same period of fiscal 1999. In the second
quarter of 2000, wholesale brand revenues decreased 8%, while retail sales
increased 9% from the same period in 1999. Over the first six months of 2000,
consolidated net sales decreased by $6.2 million, 2% below the sales for the
comparable period of 1999. Revenues related to the Company's wholesale brands
declined 3% during the first half of 2000, while retail sales increased 6%. Unit
shipments of current line merchandise for the wholesale brands during the first
half of 2000 were 2% below the comparable period in 1999. The Company's average
selling price was also lower in the first half of 2000, decreasing 2% from last
year. Sales of discontinued products increased $10.4 million in the first half
of 2000 as compared to the comparable period in 1999 as the Company paid close
attention to asset management.
Sales of Stride Rite Children's Group increased 11% in the second quarter
of fiscal 2000, the result of a 9% increase in retail sales and a 13% gain in
sales to independent accounts, as compared to the same period in fiscal 1999.
During the second quarter of 2000, sales at comparable, company-owned retail
stores increased 3.9% from 1999. For the first six months of 2000, sales of the
Stride Rite Children's Group increased 6% from the same period in 1999, with the
retail and wholesale portions increasing at a similar rate. Sales at comparable,
company-owned retail stores increased 3.7% during the first half of 2000. Sales
of the Stride Rite brand in the first half 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 second quarter of 2000, the Company operated 193
stores, down 4% from the 201 stores open at the end of the second quarter in
1999. The Company opened 10 new stores and sold or closed 9 underperforming
locations in the first six months of 2000.
In the second quarter of fiscal 2000, sales of the Keds brand were 8%
lower than the comparable period of 1999. For the first six months of 2000,
Keds' net sales decreased 1% compared to 1999, with the sales of women's and
children's products decreasing 7% and 9%, respectively, from the first half of
1999, somewhat offset by increased sales of discontinued styles. The Keds brand
completed a major product transition in the first six months of 2000 by phasing
out the "Ready to Wear" 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.
Sales of Tommy Hilfiger footwear products in the second quarter of fiscal
2000 decreased 23% as compared to the same period in 1999 with declines across
all product lines. For the first six months of 2000, sales of Tommy Hilfiger
footwear decreased 11% as compared to the same period in 1999.
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)
Although overall unit shipments were even with the comparable six-month period
of 1999, the shift to lower-priced product resulted in the decreased sales. In
the first six months of 2000, sales of Tommy Women's products were flat to last
year, while sales declined for the Tommy Hilfiger men's and boys' business.
Sales of the Sperry Top-Sider brand decreased 4% in the second quarter of
fiscal 2000, reducing the first half sales gain to 1% above the comparable
period of fiscal 1999. Sperry's second quarter sales were negatively impacted by
lower reorders and by reduced sales of the brand's women's product line.
International revenues in the second quarter of 2000 were above the comparable
period of 1999 by $0.6 million or 10%. For the first six months of 2000,
International revenues declined $2.1 million or 14% from the comparable period
of 1999, as the Company continued to change business relationships to emphasize
license royalty arrangements.
Gross Profit
During the first six months of fiscal 2000, gross profit decreased $3.0
million or 2.6% below the same period in fiscal 1999. This decrease compares to
the net sales decrease of 2% for the same period. The consolidated gross profit
percent in the first half of 2000 decreased 0.2 percentage points, finishing at
36.6% in 2000 compared to 36.8% in 1999. However, gross profit performance in
the second quarter of 2000 was improved over the same period in 1999, 37.0% in
2000 compared to 36.8% in the 1999 second quarter. The Company's gross profit
performance was negatively impacted by increased obsolescence charges as these
costs reduced gross profit by 3.4 percentage points in the first six months of
2000 compared to a reduction of 2.7 percentage points in the first half of 1999.
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 little impact on gross profit comparisons for the first six months
of 2000, with LIFO decreasing gross profit by $1.1 million (0.4% of net sales)
in 2000 compared to a reduction of $0.9 million (0.3% of net sales) in 1999.
Operating Costs
Selling and administrative expenses in the first half of fiscal 2000
decreased $5.7 million or 6.4% from the spending level in the first half of
fiscal 1999. Operating costs as a percentage of sales in the first half
decreased from 1999 by 1.3 percentage points (27.3% in 2000 compared to 28.6% in
1999). The expense level in the first half of fiscal 2000 was favorably impacted
by the Company's restructuring efforts which eliminated approximately 125
administrative staff positions during the third quarter of 1999. Higher retail
store expenses, primarily related to the start-up of new stores, increased
overall operating expenses by 0.6 percentage points during the first six months
of 2000. Advertising expense represented 5.4% of net sales in the first half of
2000, which was below the spending rate of 6.3% for 1999. This advertising cost
decrease is largely due to a shift from television to print
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)
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. Therefore,
similar advertising cost savings are not expected in the second half of 2000.
Other Income and Taxes
Other income (expense) increased pre-tax income by $0.5 million in the
first six months of fiscal 2000 compared to a decrease of $0.3 million in the
similar period of fiscal 1999. Interest income for the first six months of 2000
was $1.6 million, down slightly from the $1.7 million for the first half of
1999. Interest expense in the first six months of 2000 decreased slightly to
$1.2 million compared to $1.3 million in 1999. The lower average borrowing
levels were nearly offset by an increase in the Company's average interest rate,
7.4% in the first half of 2000 compared to 6.0% in 1999. Average short-term
borrowings in the first six months of 2000 were $31.0 million, 28% below the
average borrowings of $43.2 million in the comparable period of 1999.
The provision for income taxes increased $1.3 million in the first six
months of fiscal 2000 as compared to the similar period in fiscal 1999,
primarily due to the higher pre-tax income earned in the period. The 2000
effective income tax rate was also slightly higher, 37.9% compared to 37.8% in
1999.
Net Income
Net income for the first six months of fiscal 2000 increased $2.2 million,
up 13.7% from the income earned in the same period of fiscal 1999. Lower
operating expenses and increased other income were the primary factors
contributing to the improved earnings. As a result, the Company's return on net
sales increased to 5.9% in the first six months of 2000 as compared to 5.1% in
1999.
Liquidity and Capital Resources
At June 2, 2000, the Company's balance sheet reflects a current ratio of
3.5 to 1 with no long-term debt. The Company's cash and cash equivalents totaled
$40.9 million at the end of the latest quarter, above the prior year's cash and
cash equivalents total of $30.6 million. When combined with intermediate-term
fixed income investments, which are included in other assets, total available
cash and investments amounted to $51.0 million at June 2, 2000 compared to $41.8
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 June 2, 2000, or May 28, 1999.
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)
During the first six months of fiscal 2000, the Company generated $7.6
million of cash from operations. This positive cash flow amount was below the
$9.5 million of cash provided from operations during the same period in fiscal
1999. At June 2, 2000, accounts receivable and inventory levels totaled $162.0
million, a decrease of $33.9 million or 17% below the $195.9 million asset
amount at the end of the second quarter of 1999. Accounts receivable at the end
of the second quarter of 2000 decreased $2.5 million or 2.9% compared to the
prior year, less than the wholesale businesses' sales decrease of 8% in the
second quarter of 2000. Inventories were also lower at the end of the second
quarter of 2000, down $31.4 million or 28% from the 1999 level, due to an
overall reduction in basics style inventory compared to last year, particularly
in the Keds brand, and a more focused product line in the Stride Rite brand.
Additions to property and equipment totaled $10.8 million in the first
half of fiscal 2000 compared to $11.3 million for the same period in fiscal
1999. In the second half 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 half of 2000, the Company continued its share repurchase program,
buying back 1.6 million shares of common stock at a cost of $9.5 million. At
June 2, 2000, the Company has 3.7 million shares remaining on the repurchase
authorization approved by the Board of Directors in December 1999.
12
<PAGE>
PART II - OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Annual Meeting of the Company's shareholders was held on April 13,
2000. The three directors nominated by management were elected by the vote set
forth below:
<TABLE>
Votes
------------------------
<CAPTION>
Name of Director For Withheld
---------------- --- --------
<S> <C> <C>
David M. Chamberlain 36,496,567 444,245
Myles J. Slosberg 36,392,541 548,271
Peter L. Harris 35,828,110 1,112,702
</TABLE>
The Company's other directors, whose term of office continues after the 2000
stockholders' meeting, are as follows:
Warren Flick
Donald R. Gant
Frank R. Mori
Diane M. Sullivan
W. Paul Tippett, Jr.
Bruce Van Saun
The Company's shareholders also ratified the Company's selection of
PricewaterhouseCoopers LLP. as auditors of the Company for the 2000 fiscal year
by the vote set forth below:
<TABLE>
Votes
------------------------------------------------
<CAPTION>
For Against Abstentions
--- ------- -----------
<S> <C> <C> <C>
36,737,997 130,463 72,352
</TABLE>
13
<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.
14
<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: July 12, 2000 By: /S/ John M. Kelliher
-------------------------
John M. Kelliher
Chief Financial Officer
15
<PAGE>
THE STRIDE RITE CORPORATION
INDEX TO EXHIBITS
Exhibit Sequential Page
No. No.
------- ---------------
27 Financial Data Schedule 17
16
<PAGE>
