Shares of footwear retailer
Brown Shoe Co. Inc.
) reached a 52-week high of $27.72 on Dec 20. The company's share
price has been rising ever since the company reported improved
third quarter 2013 results and an increase in guidance on Nov 26,
Shares of Brown Shoe Co. eventually closed at $27.68 on Dec
20, with share prices rising 52.3% year-to-date. Average volume
of shares traded over the last three months came in at
Solid Third Quarter Results
On Nov 26, Brown Shoe Co. delivered solid third quarter
results, beating the Zacks Consensus Estimate for both revenue
and earnings. Adjusted earnings per share of 63 cents almost
doubled from 33 cents reported in the prior-quarter on the back
of improved performance in every category. Earnings also
increased 5% from the prior-year quarter.
Net sales rose 1% to $702.8 million driven by a 4.9% growth in
same-store sales. The upswing in the same-store sales was led by
growth in sport slides, canvas shoe styles, sandals and
lightweight running products.
Same-store sales spurred 5.6% during the back-to-school season
(August-September). During the quarter, the company closed or
relocated 22 stores and added 11 new stores, as average revenue
per square foot continued to improve.
Though gross profit as a percentage of net sales declined 50
basis points (bps) to 39.6% in the quarter, the company's
operating margin improved 50 bps to 6.4%, owing to a 70 bps
decline in selling, general and administration expense ratio.
Following better-than-expected third quarter results,
management at Brown Shoe Company raised its earnings guidance for
2013 to a range of $1.36-$1.40 compared to the earlier expected
range of $1.27-$1.32 per share. The company is hopeful that its
product portfolio and expense management initiatives will fuel
growth in the upcoming quarters. Brown Shoe Co. holds a Zacks
Rank #3 (Hold).
Other Stocks to Consider
Better-ranked stocks in the footwear industry include
Deckers Outdoor Corp
Iconix Brand Group, Inc.
Sequential Brands Group, Inc.
). All of them hold a Zacks Rank #2 (Buy).
BROWN SHOE CO (BWS): Free Stock Analysis
DECKERS OUTDOOR (DECK): Free Stock Analysis
ICONIX BRAND GP (ICON): Free Stock Analysis
SEQUENTIAL BRND (SQBG): Free Stock Analysis
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