Top Performer for Fri: Brown Shoe (BWS)

We're going to stay in retail for a second straight day and highlight Brown Shoe Company, Inc. (BWS - Snapshot Report), which is up about 9% today.

This Zacks #1 Rank Top Performer from the retail - apparel/shoe industry comes a day after women's specialty retailer AnnTaylor Stores (ANN - Snapshot Report) was featured.

Retail is one of the better-represented spaces on the Zacks #1 Rank List at the moment. Including BWS, there are 7 other companies from the industry on the list: Aeropostale (ARO - Snapshot Report), Cato Corp. (CTR), Charlotte Russe (CHIC), Genesco (GCO - Snapshot Report), J. Crew Group (JCG - Snapshot Report), Men's Wearhouse (MW - Snapshot Report) and Stein Mart, Inc. (SMRT - Snapshot Report).

Earnings Estimates

Analysts currently expect a loss of 2 cents per share for this fiscal year, which ends January 2010. The result has narrowed significantly from a loss of 38 cents 2 months ago.

The company is expected to put together a profit of 36 cents per share for next fiscal year, ending January 2011, which would mark a substantial year-over-year improvement. In addition, that guidance has improved by 140% over the past 60 days.

Fiscal First Quarter

BWS was certainly impacted by the economy in its fiscal first quarter. However, the company explained that it was able to announce slightly better-than-expected results due to advancing its key priories, which include managing expenses, inventory, working capital and debt, while maximizing opportunities in its largest businesses.

The company lost 14 cents per share during the quarter, which was steeper than the year-ago loss. However, it was also narrower than the expected loss of 32 cents by more than 56%.

Net sales declined, but only by 3% to $538.7 million.

"We expect sequential improvement of operating results in the second quarter, resulting in a narrower loss than in the first quarter, and that our efforts to manage expenses will enable us to generate positive net earnings for the full year," said Chairman and CEO Ron Fromm.

Analysts currently expect a loss of 8 cents per share for the fiscal second quarter, which has narrowed by 5 cents in the past 2 months.

Volume today is about 204,000 shares, which is below the daily average of 308,000.