No sooner did I post my last message than I found this - SHOE STOCKS: Are consumers wearing their shoes longer or are they simply becoming more cost-conscious, shying away
from the 3-digit price tags of "luxury-footwear?" What ever the reason, the recent sell-offs in the stocks of major brand names
such as Nike (NKE), Fila (FLH), and Converse (CVE) illustrate investors' lack of enthusiasm for a sector that is having a
difficult time maintaining the robust sales growth experienced over the past few years. Today, however, Fila (FLH 34 7/16
+1 3/4) shares are moving higher after the Italian athletic footwear/apparel maker reported 2nd qtr net that was not quite as
dismal as Wall Street was expecting. For the period, Fila made $15 million, or $0.56 a share, on a 8.9% improvement in
revenues to $350.5 million. Despite falling 43% from year-ago's $0.98 a share, Fila's earnings per share exceeded Wall
Street estimates by 3 cents. Going in the other direction is Kenneth Cole Productions (KCP 12 1/2 -2 3/4), after the
maker of high-end footwear, handbags and accessories reported 2nd qtr net of $0.06 a share, well below the First Call
estimate of $0.21 a share. Revenues rose 15.2% to $40.35 million on a year-over-year basis, but fell 10% from the
previous quarter. On the news, Morgan Stanley downgraded the stock to "neutral" from "strong buy." |
