I don't do a very good job of covering the shoe market in this blog, and apparently I've been missing out on something. According to Bespoke Investment Group, 2010 is shaping up to be the year of the shoe - and they're only half kidding.
The shares of eight companies that make or sell shoes (in addition to other athletic equipment) have been performing extremely well this year, especially since the stock market's low in August. Indeed, Bespoke noted that some of these stocks went vertical this week, leaving them in what technical analysts call "extremely overbought territory."
Foot Locker Inc. has risen 100 per cent from its 52-week low, Dick's Sporting Goods Inc as risen 71 per cent, Finish Line has risen 103 per cent and Nike Inc has risen 42 per cent. By comparison, the S&P 500 has risen just 19 per cent from its 52-week low.
Other big shoes movers include Shoe Carnival Inc. , Genesco Inc. , Hibbetts Sports Inc. and DSW Inc. .
The gains aren't coming from nowhere. Last week, Hibbetts reported that its net earnings rose 43.5 per cent in the third quarter, over last year. Sales at stores open for at least one year (also known as same store sales) surged 12.5 per cent, and the company also raised its guidance for fiscal 2011.