Standard & Poor's Ratings Services compared the credit quality of four leading U.S. footwear retailers: Brown Shoe Co. Inc. (BB/Stable/--), Collective Brands Inc. (B+/Stable/--), Foot Locker Inc. (BB/Negative/--), and Genesco Inc. (BB-/Watch Dev/--). Brown Shoe is ranked the strongest of the U.S. footwear retailers because of its large specialty family footwear presence, diversified distribution base, consistent operating performance, and improvement in credit protection metrics. Although performance for Foot Locker has been poor for 2007, it ranks second due to its leading position in athletic footwear and good brand recognition. Genesco's poor operations also weigh heavily on its ranking, but it is supported by a diversified portfolio of concepts. Collective Brands, which has improved its business profile substantially through acquisitions and...
Companies mentioned in this report are:
- Caleres Inc.
- Genesco Inc.
- Foot Locker 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 >