Summary: Brown Shoe Co. Inc.
- ID: 1753668
- March 2011
- Standard & Poors
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.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
The speculative-grade ratings on Brown Shoe Co. Inc. reflect Standard & Poor's Ratings Services' expectation that leverage is likely to decline to the mid-4x over the near term because of strong top-line growth from the ASG acquisition, coupled with relatively stable margins. However, an increase in debt to fund the ASG transaction is likely to partially offset performance gains. It also reflects our analysis of the company's participation in the mature, competitive, and fragmented wholesale and retail footwear business; low operating margins relative to those of its peers; and aggressive financial profile with fair credit protection metrics. Although the company realized meaningful top-line growth over the past year, supply chain and technology issues at the wholesale division tempered margin gains....
Companies mentioned in this report are: Brown Shoe Co. Inc.
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