It can take a few quarters for Wall Street to dial in its expectations
when a company has started out/underperforming, and that's particularly
true in cases of turnarounds. Brown Shoe (NYSE:BWS)
enjoyed a good two-year run in the market as the company's
turnaround/restructuring efforts paid off and as the company's
outperformance reset the bar for expectations. While the company's
second quarter results and guidance weren't bad as such, they would
suggest that maybe the Street has finally caught up to the story and the
momentum angle of outperforming expectations is no longer in play.
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Showing posts with label Shoe Carnival. Show all posts
Showing posts with label Shoe Carnival. Show all posts
Tuesday, August 27, 2013
Wednesday, May 29, 2013
Investopedia: Brown Shoe Continues Its Turnaround With Sharper Execution
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.
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http://www.investopedia.com/stock-analysis/052913/brown-shoe-continues-its-turnaround-sharper-execution-bws-scvl-dsw-fl.aspx
Please continue below:
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Thursday, August 30, 2012
Investopedia: Can Brown Shoe Move From Repair To Growth?
It has been about a year since I last wrote on Brown Shoe (NYSE:BWS)
and what a year it has been. While I had previously been skeptical of
the board's selection of Diane Sullivan as CEO, the hyperbole around a
share buyback, and the company's general strategic direction, I did hold
out the hope that the company was washing out its bad news and was
ready to get back to a real recovery. Since then, though, the stock has
nearly doubled and it may fairly be asked if the company can still
really be called a turnaround story.
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Please continue reading here:
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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%.
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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%.
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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.
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.
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