Monday, December 6, 2010

Investors Willing To Pay More For Payless

Collective Brands (NYSE:PSS) had a lot of the characteristics of a potential winner. The company has a strong market position in its niche, a low valuation and realistic levers to pull for long-term growth. All that the stock needed was a solid quarter to get investors confident again ... and voila, the company did just that with its third quarter earnings report.

An Okay Quarter And Low Expectations
Of course, a "solid quarter" is a relative concept. Collective Brands' third quarter results were not all that strong in and of themselves, but they were a fair bit better than analysts were expecting. Total sales rose almost 2%, while comparable store sales were down 2.7%. That is admittedly not strong, but still better than some Wall Street expectations.

Within those numbers, the domestic Payless business was clearly soft; revenue was down 5% on a 4.6% decrease in comps. Payless international was stronger, though, as sales were up 8%.


Please follow this link for the complete article:
http://stocks.investopedia.com/stock-analysis/2010/Investors-Willing-To-Pay-More-For-Payless-PSS-BWS-FL-NKE-TGT-WMT-SCVL1206.aspx

No comments: