Brown Shoe Co., operator of Famous Footwear stores, sank the most in more than a year after saying increased costs will hurt profit margins in the second half.

Spending on marketing and incentive pay will increase $20 million in the third quarter, the St. Louis-based retailer said Wednesday in a statement. Costs for shipping and sourcing in its wholesale division, which includes the Buster Brown brand, are rising and will affect margins the rest of the year, Chief Financial Officer Mark Hood said on a conference call.

"All the cost component pieces are accelerating relative to what people thought," said Christopher Svezia, an analyst for Susquehanna Financial Group in New York, who rates Brown Shoe shares "neutral."

"You throw everything together and it assumes that the second half won't be as strong as people thought."

Net income for the second quarter was $5.26 million, or 12 cents a share, in the 13 weeks ended July 31, compared with a loss of $4.25 million, or 10 cents, a year earlier. Excluding some items, profit was 15 cents, compared with the average analysts' estimate of 10 cents in a Bloomberg survey.

Full-year sales will grow in the "low double-digit range," the retailer said.

Brown Shoe fell $1.80, or 14 percent, to $11 in New York Stock Exchange composite trading.