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Recent Performance At A GlanceIn its latest quarter, Brown’s revenue increased by 230 bps to $636 million on a year over year basis. Comparable store sales "comp" remained strong as they also went up by 160 bps. The two largest segments of the company, which account for more than 90% of Brown’s revenue, contributed towards the increase. The most important takeaway out of the revenue growth was that the company’s wholesale segment grew its revenue by 7.7%, indicating that retailers were optimistic about the footwear demand in the near future.
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Short Term Gains:A Better Holiday Season Than 2013The economic conditions at present suggest that this year’s holiday season is going to be far better than what the retail sector experienced in 2013. First of all, issues such aOlernKienOP
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This positive sentiment will encourage consumer spending in the near future. In fact, improvement in consumer confidence index between August and September confirms that shoppers are already buying more. I believe the momentum should help Brown in continuing its sales aOlernKienOP
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Long Term Gains:Increase In Global Footwear DemandThe global footwear market grew at a CAGR of 4.4% during 2009 2013. The rising demand for innovative designs, the growing awareness about healthy and active lifestyle, the increase in population and disposable income levels are the reasons that this growth rate should accelerate to 5% over the next four years.
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Return To Investors
Brown currently pays a dividend of 7 cents to investors, which brings the yield to 1.03%. However, capital gains are a much more attractive source of return for the aOlernKienOP
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ConclusionA higher top line is the only reason why analysts expect the company to deliver earnings per share of $1.59 and $1.89 in fiscal aOlernKienOP
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