“Buy low, sell high” was the mantra in 2009. Though it was a tough year to play the market, investors who bet on the footwear sector were likely pleasantly surprised. Many stocks saw strong gains in the last few months of 2009, as consumers began to loosen their purse strings and retailer stocks generally led the way out of the recession. Here, the top 10 stocks in 2009 as tracked by Footwear News.
January 25, 2010
Finance Degrees: Best Shoe Stock Performers in 2009
“Buy low, sell high” was the mantra in 2009.
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1. Dillard’s Inc.
Change 365%
'09 Close: $18.45
'08 Close: $3.97
Shares of department store chain Dillard’s enjoyed a generally upward swing since early March 2009 — notably, a 36 percent pop in May when the retailer had surprisingly strong first-quarter earnings. The stock also saw a final jump in mid-November. That’s when Dillard’s reported that, despite a decline in revenues, it swung to a third-quarter profit from a loss the prior year and gross margins jumped by 370 basis points. -
2. Crocs Inc.
Change 364%
'09 Close: $5.75
'08 Close: $1.24
The one-time Wall Street darling began 2009 near its lowest trading point in the company’s history, after its auditor expressed concerns about the firm’s ability to continue as an ongoing entity. However, by mid-year, shares of Crocs were on the rebound, thanks, in part, to a refueled management team, led by new CEO John Duerden. In August, Crocs stock soared 29 percent the day after the firm posted a smaller-than-expected loss. -
3. J. Crew Group Inc.
Change 267%
'09 Close: $44.74
'08 Close: $12.20
The one-time Wall Street darling began 2009 near its lowest trading point in the company’s history, after its auditor expressed concerns about the firm’s ability to continue as an ongoing entity. However, by mid-year, shares of Crocs were on the rebound, thanks, in part, to a refueled management team, led by new CEO John Duerden. In August, Crocs stock soared 29 percent the day after the firm posted a smaller-than-expected loss. -
4. Big 5 Sporting Goods Corp
Change 230%
'09 Close: $17.18
'08 Close: $5.21
In 2009, Big 5 Sporting Goods held on to its goal to provide consumers with sporting goods at what it calls “compelling values.” The stock had a big spike in late April when the firm reported first-quarter earnings of $2.8 million, at the high end of its guidance; the stock subsequently rose about 50 percent over a two-day trading period. Big 5 said third-quarter earnings nearly doubled to $8 million, while sales rose to $231.6 million from $223.2 million. -
5. Nordstrom Inc.
Change 182%
'09 Close: $37.58
'08 Close: $13.31
Nordstrom has long stood out from the luxury pack, thanks to its innovative merchandising, loyal customers and air of exclusivity. The family-run department store chain also has had a strong financial position through the years, most recently reporting a 17 percent jump in third-quarter earnings on a 4 percent rise in sales. As a result, investors have rewarded the stock, which enjoyed lots of appreciation through 2009. -
6. Jones Apparel Group Inc.
Change 174%
'09 Close: $16.06
'08 Close: $5.86
After hitting a low point for the year in late February, shares of Jones Apparel Group rose steadily, hitting a high of $19.54 in mid-November. Despite the recession, Jones continued to grow last year, adding more stores to its latest retail concept, Shoe Woo, as well as launching a new Rachel Rachel Roy contemporary footwear line and expanding its Nine West and Easy Spirit labels overseas. -
7. Amazon.com Inc.
Change 162%
'09 Close: $134.52
'08 Close: $51.28
Amazon’s huge gains for 2009 were, in part, spurred by the Internet giant’s $1.2 billion purchase in early November of Zappos.com. Of course, Amazon’s powerful financials have also propelled the share price: The firm said in late October that third-quarter sales rose 28 percent and profits popped to $199 million from $118 million, leading to a 27 percent one-day spike in the stock price. -
8. Pacific Sunwear of California Inc.
Change 150%
'09 Close: $3.98
'08 Close: $1.59
Despite a somewhat up-and-down year, shares of PacSun managed to more than double in 2009, mainly because they were so depressed following the collapse of the financial markets in late 2008, as well as having been negatively affected by a hostile takeover bid by athletic brand Adrenalina. In fact, the stock hit a low of 82 cents in late January 2009, but recovered to more than $4 in May, when Adrenalina ended its battle. -
9. Cabela's Inc.
Change 145%
'09 Close: $14.26
'08 Close: $5.83
After bottoming out in late 2008, shares of Cabela’s had regained about half their value by late February 2009, when the firm said full-year 2008 revenues rose 9 percent and that its 2.2 percent rise in fourth-quarter same-store sales was the largest quarterly increase in more than a year. The stock surpassed $15 a share in July following its second-quarter earnings report, when profits rose to $9.1 million from $7.3 million the prior year. -
10. Urban Outfitters Inc.
Change 134%
'09 Close: $34.99
'08 Close: $14.98
A consistent performer financially, Urban Outfitters most recently reported a third-quarter profit of $62.4 million, an increase of 5 percent, thanks to solid sales. Despite a downward blip in early July, the specialty retailer, which owns its namesake, Anthropologie and Free People brands, saw its stock price more than double over the year from about $15 in early January and rising above $30 by September.
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01
Dillard’s Inc.
Change 365%
-
02
Crocs Inc.
Change 364%
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03
J. Crew Group Inc.
Change 267%
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04
Big 5 Sporting Goods Corp
Change 230%
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05
Nordstrom Inc.
Change 182%
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06
Jones Apparel Group Inc.
Change 174%
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07
Amazon.com Inc.
Change 162%
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08
Pacific Sunwear of California Inc.
Change 150%
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09
Cabela's Inc.
Change 145%
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10
Urban Outfitters Inc.
Change 134%
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