Mention Wall Street these days, and many people just roll their eyes. But this year, savvy investors are finding comfort in footwear stocks.
“Part of the zeitgeist of what’s going right in the country is that shoes are in a bull market,” said “Mad Money” host and TheStreet.com founder Jim Cramer. “Whose shoes are in a bull market? The answer there is more about who’s got good fashion for less. That’s a tremendous draw.”
No wonder Cramer singled out Deckers Outdoor Corp., DSW Inc. and Steven Madden Ltd., stocks with soaring year-over-year share prices.
“I feel very strongly that Deckers — now with its second leg, Teva — is in a position to be the dominant footwear company in the world,” he said. “And yes, I am including the possibility of Nike.”
It’s no surprise, then, that shares of the Santa Barbara, Calif.-based firm recently hit a new 52-week high of $168.52 on June 21. (At press time, the price had cooled to $153.63.)
Then there’s toning: Companies can’t keep up with demand, which is boding well for firms such as Adidas AG and Skechers USA Inc., which has seen its stock rise an astounding 357 percent year-over-year. “The industry as a whole is in a much healthier state than it has been in for years,” said Jim Duffy, an analyst at Thomas Weisel Partners.