Brown Shoe Company Inc.
) have been trending higher since May and hit a 52-week high on
November 27. This footwear retailer reported a positive earnings
surprise of 27.7% for its fiscal third quarter last week, and
became a Zacks #1 Rank (Strong Buy) this week. BWS has gained 106%
The company's consumer-oriented strategies, portfolio realignment
initiatives, product innovation and cost containment efforts
suggest that there is enough potential for even more improvement
Third Quarter Beat
Brown Shoe Company reported fiscal third-quarter earnings of 60
cents per share on November 20, sweeping past the Zacks Consensus
Estimate of 47 cents and jumping 17.6% from last year.
Total sales of $732.2 million handily beat the Zacks Consensus
Estimate of $703 million and rose 2.6% year over year, driven by
sales improvement at the Famous Footwear segment (up 4.6%), offset
by declines in the Wholesale Operations (down 0.4%) and Specialty
Retail (down 1.8%) segments. Operating income surged 27.1% to $41.1
million, whereas operating margin expanded 110 basis points to
Management now expects fiscal 2012 sales in the range of $2.57
billion to $2.59 billion, and earnings between $1.06 and $1.10 per
Earnings Estimate Revisions
The Zacks Consensus Estimate for this fiscal year rose 16.1% to
$1.08 per share in the last 30 days, as all 4 estimates were
revised higher. This represents year-over-year growth of 54.6%.
The Zacks Consensus Estimate for next fiscal year advanced 6.6% to
$1.29 per share in the same time, as 4 of 5 estimates were raised.
This guidance reflects a year-over-year increase of 19.4%.
Chart Reflects Strength
Shares of Brown Shoe Company have been on an upsurge since May this
year, recording a year-to-date return of 106%. Currently trading
close to its 52-week high, shares of Brown Shoe have consistently
traded above its 200-day moving average since May 17, 2012. Barring
a few occasions, the stock has also remained above the 50-day
moving average since the above mentioned period. Moreover, the
company has outperformed the S&P 500 Index since May this year.
Volume is fairly strong, averaging roughly 483K daily.
Founded in 1878 and headquartered in St. Louis, Missouri, Brown
Shoe Company is a wholesaler as well as retailer of footwear with
businesses in the United States, Canada and China. It operates
approximately 1,300 retail stores under the Famous Footwear and
Naturalizer names. Famous Footwear retail stores feature products
under brands such as Nike, Skechers, New Balance, Converse, Puma,
adidas, DC, Asics, LifeStride, Dr. Scholl's Shoes, Reebok, Vans,
K-Swiss, BOC by Born and Bearpaw. Naturalizer retail stores offer
footwear products related to women. The company has a current
market cap of $737 million.
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