Tuesday, August 30, 2011

Investopedia: Brown Shoe Needs More Execution, Less Excuses


I have been a fan of shoe retailer Brown Shoe (NYSE:BWS) for some time, having profitably owned it many years ago, but perhaps it's time to reevaluate that position. While many retailers are struggling in a difficult consumer spending environment, there are more worrisome issues between the lines. Brown Shoe is making mistakes that it should not be making and offering up fairly thin excuses in place of execution. Brown Shoe's problems are not unsolvable and the valuation is compelling, but shareholders have every right to demand more from this management team.

Another Poor Performance
This fiscal second quarter marks the company's third consecutive major miss with respect to analyst expectations. Revenue rose more than 7% in the quarter, but still came in slightly shy of the average analyst guess. The company's largest segment, Famous Footwear, saw sales drop almost 1%, while the wholesale business was up more than 24% and the small specialty segment rose about 1%.


To read more, click below:
http://stocks.investopedia.com/stock-analysis/2011/Brown-Shoe-Needs-More-Execution-Less-Excuses-BWS-SKX-SCVL-PSS-NKE-KSWS-SAP0830.aspx

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