Investopedia: The Best And Worst Of Times In Shoes

Shoes are a weird business. You never can tell what is going to resonate with the public at any particular point in time - after all, people have fallen over themselves trying to get a hold of plastic shoes, shoes with little clear windows in the heel and shoes that allegedly build muscle. At the same time, it is a ridiculously competitive industry with price points all over the map.

With that backdrop, perhaps it should not be so surprising that the performance of shoe companies and retailers is also all over the map. Companies like DSW (NYSE:DSW) and Timberland (NYSE:TBL) have leveraged solid financial momentum into good stock performance, while the stocks of more bargain-oriented retailers like Collective Brands (NYSE:PSS) and Brown Shoe (NYSE:BWS) have had some struggles.

Brown Shoe, DSW Not Looking So Green
Brown Shoe has been all over the map for years, and Tuesday's poor earnings report will not help. Not only did sales growth of 7% miss estimates, but the margins were a mess. Overall gross margin fell more than 200 basis points, due solely to the wholesale business. Wholesale margins fell 800 basis points because of sourcing problems and order fulfillment issues tied to a new IT system. All in all, the company missed its EPS target by a pretty meaningful amount and the market was merciless to the shares. 

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