In this report, Standard & Poor's compares the credit quality of three leading footwear retailers in the U.S.: Payless ShoeSource Inc. (BB/Stable/--), Brown Shoe Co. Inc. (BB/Stable/--), and Genesco Inc. (BB-/Stable/--). Although Payless and Brown Shoe are rated 'BB' with a stable outlook, Payless is considered marginally stronger than Brown Shoe. Payless' somewhat better business profile, including its solid market position and significant scale in distribution and sourcing, offsets its recent soft operating performance and weakening credit measures. As a result, it is viewed as the strongest of the three credits. Brown Shoe ranks second -- it has a weaker market position and below-average profitability, offset by its diverse distribution channels and improving credit measures. Genesco is considered the weakest...
Companies mentioned in this report are:
- Caleres Inc.
- Genesco Inc.
- Payless Inc.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues. SHOW LESS READ MORE >