Posts Tagged ‘apparel stocks’

Collective Brands Inc. (PSS) ponders options, stock rockets

Thursday, August 25th, 2011

Collective Brands Inc. (NYSE: PSS) shares rose 19.8% to $12.32 after the parent of Payless and Stride Rite shoe stores said it would explore strategic options. Volume for the stock surmounted 4.8 million shares, or more than double its full-day average.

A news release out August 24 reported that the company, based out of Topeka, Kansas, said that as part of its efforts to optimize the performance of its Payless and Stride Rite store fleet, it would close approximately 475 under-performing and low-volume, non-strategic stores in the next three years with more than 300 of those closings coming by the end of this fiscal year.

The Company estimated that the costs for lease terminations, severance, and other exit costs related to closing these stores could be in the range of $25 million to $35 million.

The release also quoted CEO Michael Massey as saying, “While the second quarter was challenging for the company, we are taking aggressive actions to improve the business.

“In Payless Domestic, we are gaining a much greater understanding of our customers and their needs and expectations. With this clarity, we are taking short term actions to improve our performance, accelerating key initiatives, and adjusting our longer term strategies. At the same time, we will continue to invest for growth and profitability in our Performance + Lifestyle Group and international businesses.”

In the same release, investors could also see that net sales for the quarter ending July 30 increased 4.9% to $882.4 million. The second quarter 2011 net loss attributable to Collective Brands, Inc. was $35.0 million or $0.58 per diluted share. Excluding certain impairment and severance charges, adjusted net earnings attributable to Collective Brands were $9.9 million, or $0.16 per diluted share.

Deckers Outdoor Corp. (DECK) – Buzz Stock of the Day

Friday, October 29th, 2010

Shares of shoemaker Deckers Outdoor Corp. (Nasdaq: DECK) soared as much as 9 percent from Thursday’s closing price, in morning trading on Friday after the company reported strong third quarter earnings that beat analysts’ expectations.

“The strong performance of our new fall lines helped fuel sales gains across each of our distribution channels and geographic regions compared to the third quarter of last year,” said Deckers’ Chairman and CEO, Angel Martinez in a statement. “We continue to successfully expand the UGG brand’s market share by developing more compelling products including boots, casuals and sneakers that target a wider consumer audience. The global response to our fall collection has been very encouraging, with sell-through rates accelerating as we’ve moved into the fourth quarter. At the same time, the strong momentum the Teva brand experienced during the first half of the year is carrying over into the second half. This was driven by increased shipments of our fall collection, led by an expanded offering of closed toe products coupled with strong in-season demand for our sandal assortment. We are encouraged by the current trends in our business and believe we are well positioned for a very good holiday selling season.”
Deckers earned $42.1 million, or $1.07 per share in the third quarter ended September 30, 2010, largely driven by improved sales of its UGG boots and Teva sandals. Analysts were expecting earnings of 93 cents per share. Quarterly revenue increased to $277.9 million, from $228.4 million, a year earlier.

Sales of the company’s UGG boots increased 20.2 percent to $255.8 million, and sales of its Teva sandals increased to $13.7 million, up 51.7 percent from $9 million a year ago.

Deckers also raised its full-year revenue outlook to a 16 percent improvement over 2009 levels, up from previous guidance of 14 percent. The company also expects its full year EPS to increase 22 percent over 2009, compared to previous earnings guidance of 16 percent, over last year.

Shares of Deckers Outdoor Corp. are up approximately 13 percent over the past three months.