Fairness demands that I open this article on Brown Shoe (NYSE:BWS)
with an admission and an apology – I was wrong about the company's
decision to name Diane Sullivan CEO back in May of 2011. While I had
thought the company numerous operational missteps during her tenure as
COO boded poorly for her future as CEO, the fact is that her strategy of
weeding out underperformance at Famous Footwear and selling off
unpromising wholesale brands has led to some meaningful operational
improvements. There are still challenges for the company to address, but
I can no longer cite questions about management as a credible source of
concern.
Please continue below:
http://www.investopedia.com/stock-analysis/052913/brown-shoe-continues-its-turnaround-sharper-execution-bws-scvl-dsw-fl.aspx
Showing posts with label Foot Locker. Show all posts
Showing posts with label Foot Locker. Show all posts
Wednesday, May 29, 2013
Saturday, March 23, 2013
Investopedia: Nike Continues To Just Do It
For Nike (NYSE:NKE)
to perform as it has despite economic challenges in Europe, China, and
the U.S. is a pretty strong testament both to the power of the brand,
but also the company's commitment to product development. With a strong
pipeline, signs of improvement in China, and the potential to recapture
some lost gross margin,
Nike could retest its 52-week high in the not-so-distant future. Nike
isn't a terribly cheap or underrated stock, but strong financial
performance could still translate into decent (or better) stock
performance.
Click below to continue:
http://www.investopedia.com/stock-analysis/032213/nike-continues-just-do-it-nke-ua-dks-lulu-addyy.aspx
Click below to continue:
http://www.investopedia.com/stock-analysis/032213/nike-continues-just-do-it-nke-ua-dks-lulu-addyy.aspx
Friday, December 28, 2012
Investopedia: China's Sluggish, But Nike's Growing Well Everywhere Else
Nike (NYSE:NKE)
gave investors a rare chance to pick up shares at a more reasonable
price twice this year, but it looks like it's back to business as usual
for the world's biggest footwear company. Although business in China
remains sluggish, Nike's overall growth and margin profile continue to
look quite strong.
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Please follow this link for more:
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Monday, March 26, 2012
Investopedia: Nike Running Away From Everything
When companies with great brands go on runs, all you can really do is hang on for the ride (if you own shares) or wait in the hopes of a stumble somewhere down the line (if you don't). By no means is Nike (NYSE:NKE) cheap right now, but it's hard to fault a huge global leader that is growing by double-digits and could yet double revenue over the next decade (if not sooner).
Another Good Quarter ... Mostly
Although it wasn't a flawless fiscal third quarter, on the whole Nike did a very good job and business is strong. Revenue rose 15%, as the company logged double-digit sales in all of its major categories. Sales to North America (the largest region) rose 17%, while sales to China rose over 25%, despite a somewhat sluggish performance in apparel.
Please read more here:
http://stocks.investopedia.
Another Good Quarter ... Mostly
Although it wasn't a flawless fiscal third quarter, on the whole Nike did a very good job and business is strong. Revenue rose 15%, as the company logged double-digit sales in all of its major categories. Sales to North America (the largest region) rose 17%, while sales to China rose over 25%, despite a somewhat sluggish performance in apparel.
Please read more here:
http://stocks.investopedia.
Thursday, February 23, 2012
Investopedia: Can K-Swiss Stop The Bleeding?
The footwear industry is brutally competitive, and it looks like K-Swiss (Nasdaq:KSWS) is well on its way to being one of those cautionary tales. Although K-Swiss technically broke a five year streak of year-on-year revenue declines, free cash flow has declined six years running and the company's ongoing survival is no sure thing. While a hit product could turn things around relatively quickly, K-Swiss is starting to look like a longer and longer shot with each quarter.
A Fairly Lousy Fourth Quarter
Although K-Swiss did report 18% revenue growth for the fourth quarter (against expectations of a 3% drop), that surprising jump in sales did the company little good. Domestic sales rose more than 10% and international sales jumped almost 24%, but profitability was a major issue.
Read the full article here:
http://stocks.investopedia.com/stock-analysis/2012/Can-K-Swiss-Stop-The-Bleeding-KSWS-NKE-SKX-BWS-FL-FINL0223.aspx#axzz1mCOsX1dQ
A Fairly Lousy Fourth Quarter
Although K-Swiss did report 18% revenue growth for the fourth quarter (against expectations of a 3% drop), that surprising jump in sales did the company little good. Domestic sales rose more than 10% and international sales jumped almost 24%, but profitability was a major issue.
Read the full article here:
http://stocks.investopedia.com/stock-analysis/2012/Can-K-Swiss-Stop-The-Bleeding-KSWS-NKE-SKX-BWS-FL-FINL0223.aspx#axzz1mCOsX1dQ
Wednesday, January 11, 2012
Investopedia: A Better Brown Shoe Is Worth A Lot More
Brown Shoe (NYSE:BWS), the third-largest footwear retailer in the country and a major wholesaler to other retailers like Wal-Mart (NYSE:WMT) and Kohl's (NYSE:KSS), has seemingly been in perpetual turnaround for the better part of a decade. Although the company still has much to prove to the Street and the stock is off its lows, sustained operational improvements could make this stock a real winner in the years to come. (For more, see Earning Forecasts: A Primer.)
A Two-Part Business
Many readers will be familiar with Brown Shoe through its retail system. Brown Shoe operates the third-largest chain of footwear stores (Famous Footwear) after Collective Brands' (NYSE:PSS), Payless ShoeSource and Foot Locker (NYSE:FL), as well as specialty stores like Naturalizer. Perhaps less familiar is the company's wholesale business - a business that supplies brands like Sam Edelman to stores like Nordstrom (NYSE:JWN) and Saks (NYSE:SKS).
Read more here:
http://stocks.investopedia.
Tuesday, June 28, 2011
Investopedia: Nike Still Winning
It seems a little strange that footwear and athletic apparel maker Nike (NYSE:NKE) never quite gets the same respect or admiration that Coca-Cola (NYSE:KO), Microsoft (Nasdaq:MSFT) or Wal-Mart (NYSE:WMT) get from investors and business historians. After all, Nike started at almost the same time as Wal-Mart and is every bit as global (if not more) in its reach and influence.
Perhaps even more to the point for investors, Nike continues to grow at a pace that most other giant consumer products companies struggle to match. With Nike arguably having room for improvement and expansion in multiple areas, there would be seem to be no immediate cause to think Nike cannot continue to grow for many years to come.
A Strong End to the Fiscal Year
Nike reported that sales rose 14% to close out its fiscal year. In topping even the high end of sales estimates, Nike saw footwear sales growth of 19%, apparel growth of near 8%, and equipment growth of 5%. While sales were notably strong in China and emerging markets (and these markets are collectively as important to Nike as Europe), North America was no slouch at 21% reported growth.
To read the full piece, please click below:
http://stocks.investopedia.
Perhaps even more to the point for investors, Nike continues to grow at a pace that most other giant consumer products companies struggle to match. With Nike arguably having room for improvement and expansion in multiple areas, there would be seem to be no immediate cause to think Nike cannot continue to grow for many years to come.
A Strong End to the Fiscal Year
Nike reported that sales rose 14% to close out its fiscal year. In topping even the high end of sales estimates, Nike saw footwear sales growth of 19%, apparel growth of near 8%, and equipment growth of 5%. While sales were notably strong in China and emerging markets (and these markets are collectively as important to Nike as Europe), North America was no slouch at 21% reported growth.
To read the full piece, please click below:
http://stocks.investopedia.
Thursday, May 26, 2011
Investopedia: Collective Brands Might Be Worth The Wait
In most respects, these are pretty good days to be in value-oriented retail. Companies like Family Dollar (NYSE:FDO), Ross Stores (Nasdaq:ROSS) and TJX (NYSE:TJX) all are seeing their stocks trade near 52-week highs, and analyst estimates have been an upward match.
That stands in pretty sharp comparison to the shoe sector, where leading value-oriented companies like Brown Shoe (NYSE:BWS) and Collective Brands (NYSE:PSS) (owner of Payless and Stride Rite) are struggling. With Collective Brands reporting a very disappointing first quarter, it is worth asking whether there is something fundamentally different about the shoe business, or whether the absence of institutional demand for these stocks makes for a buying opportunity for value investors.
A Tough Quarter for Several Reasons
Collective Brands announced that revenue for the fiscal first quarter fell a bit more than 1%, which is not so bad until it's considered that the company missed the average estimate by about 5%. Although the company's very profitable PLG Wholesale business saw revenue rise almost 23%, overall company results were hurt by a 9% drop in domestic Payless revenue (which was fueled by a greater than 8% drop in same-store comps). International sales were also weak, as poor performance in Canada pushed the Payless international revenue down by almost 3%.
Continue to the full piece via the link below:
http://stocks.investopedia.
That stands in pretty sharp comparison to the shoe sector, where leading value-oriented companies like Brown Shoe (NYSE:BWS) and Collective Brands (NYSE:PSS) (owner of Payless and Stride Rite) are struggling. With Collective Brands reporting a very disappointing first quarter, it is worth asking whether there is something fundamentally different about the shoe business, or whether the absence of institutional demand for these stocks makes for a buying opportunity for value investors.
A Tough Quarter for Several Reasons
Collective Brands announced that revenue for the fiscal first quarter fell a bit more than 1%, which is not so bad until it's considered that the company missed the average estimate by about 5%. Although the company's very profitable PLG Wholesale business saw revenue rise almost 23%, overall company results were hurt by a 9% drop in domestic Payless revenue (which was fueled by a greater than 8% drop in same-store comps). International sales were also weak, as poor performance in Canada pushed the Payless international revenue down by almost 3%.
Continue to the full piece via the link below:
http://stocks.investopedia.
Tuesday, March 22, 2011
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.
Please continue to the full piece:
http://stocks.investopedia.
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.
Please continue to the full piece:
http://stocks.investopedia.
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.
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.
Friday, September 24, 2010
Nike's Winning Formula
Although Nike (NYSE:NKE) is well-known as a global athletic brand juggernaut, it may yet still not get all of the credit it deserves. How many suppliers can dominate its retailers like Nike? How many companies have been so successful in their home markets and then ported over that popularity to overseas markets with hardly a hiccup? At best, it is a short list and would probably be made up mostly of much-larger companies like Coca-Cola (NYSE:KO) and Apple (Nasdaq:AAPL).
Looking at Nike's first fiscal quarter results, it seems like this story just keeps rolling on.
The Quarter that Was
Last year was a tough one, but Nike seems to be bouncing back well. Revenue was up 8% this quarter, with footwear and apparel posting similar growth rates of about 7%. Global futures, though, were up 13%, and that suggests an ongoing consumer recovery. That futures growth was strong in China and in emerging markets was not surprising, but North America futures were also very strong. Perhaps not so surprisingly, Western Europe and Japan were both soft (Japan in particular).
Click below for the full column:
http://stocks.investopedia.com/stock-analysis/2010/Nikes-Winning-Formula-NKE-ADDYY-SKX-KSWS-FL0924.aspx
Looking at Nike's first fiscal quarter results, it seems like this story just keeps rolling on.
The Quarter that Was
Last year was a tough one, but Nike seems to be bouncing back well. Revenue was up 8% this quarter, with footwear and apparel posting similar growth rates of about 7%. Global futures, though, were up 13%, and that suggests an ongoing consumer recovery. That futures growth was strong in China and in emerging markets was not surprising, but North America futures were also very strong. Perhaps not so surprisingly, Western Europe and Japan were both soft (Japan in particular).
Click below for the full column:
http://stocks.investopedia.com/stock-analysis/2010/Nikes-Winning-Formula-NKE-ADDYY-SKX-KSWS-FL0924.aspx
Friday, June 25, 2010
Wait For A Sale On Nike
When is high-quality merchandise not so attractive? When you have to pay up to get it.
I am a fierce bargain hound, so much so that if I am routinely shopping at your store, you may just have a problem. But that innate cheapness serves me well in the stock market and I think investors who do not already own Nike (NYSE:NKE) should put this one on their "buy when it gets cheaper" watch list.
The Quarter That WasNike had a lukewarm quarter. Revenue was a little light relative to analyst hopes, but still grew about 8% to just over $5 billion. Within that number, footwear sales climbed more than 6% (to about $2.7 billion), while apparel jumped up 13% to $1.3 billion.
For the full column:
http://stocks.investopedia.
I am a fierce bargain hound, so much so that if I am routinely shopping at your store, you may just have a problem. But that innate cheapness serves me well in the stock market and I think investors who do not already own Nike (NYSE:NKE) should put this one on their "buy when it gets cheaper" watch list.
The Quarter That WasNike had a lukewarm quarter. Revenue was a little light relative to analyst hopes, but still grew about 8% to just over $5 billion. Within that number, footwear sales climbed more than 6% (to about $2.7 billion), while apparel jumped up 13% to $1.3 billion.
For the full column:
http://stocks.investopedia.
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