Brown Shoe Company: Positioned to Benefit as Economy Improves

In a recent edition of Value Investor Insight, Karen Finerman of Metropolitan Capital Advisors described why she sees mispriced value in Brown Shoe Company (BWS).

What appeals to you about Brown Shoe [BWS]?

KF: The company is in both the retail and wholesale footwear businesses, which account for roughly 60% and 40% of revenues, respectively. The Famous Footwear retail stores are focused on selling shoes for the entire family, from Nikes and Skechers to Brown’s own brands, like Buster Brown, Dr. Scholl’s and Naturalizer. The typical customer is probably female, shopping for her family. On the wholesale side, Brown is a solid industry #2, behind Nine West, and has a full range of brands from low- to high-end. We attribute the overwhelming majority of the negativity built into the stock (which is down 45% in the past year) to what’s going on in consumer retail. Brow