Earnings Previews: Collective Brands and DSW

Footwear retailers Collective Brands

and DSW

are scheduled to report their fiscal first-quarter 2011 results tomorrow, May 24. The former reports after the closing bell and the latter before the markets open in the morning. Analysts are looking for Collective Brands to post earnings of $0.82 per share on revenues of $915.1 million. That compares to $0.83 per share on $878.8 million in the same period of last year. The consensus earnings estimate has dropped from 60 days ago, when it was $0.85 per share. DSW's forecast for the quarter calls for earnings of $0.75 per share on revenues of $486.5 million. That is up from $0.67 per share and $449.5 million in the same period of last year. The analysts' first-quarter earnings estimate is 3 cents per share higher than 60 days ago. Topeka, Kansas-based Collective Brands sells shoes and accessories in more than 4,400 Payless ShoeSource outlets in about 20 countries. In March, Collective Brands announced a collaboration with Colombian fashion designer Silvia Tcherassi. Columbus, Ohio-based DSW sells discounted brand-name footwear through more than 300 stores, as well as online. In February, DSW announced a merger with Retail Ventures

, its largest shareholder. Looking ahead to the third quarter, analysts so far expect to both companies to report year-over-year growth in per-share earnings and revenues. And the full year forecast calls for EPS up 1.8% and revenues up 3.6% for Collective Brands and EPS growth of 10.7% and revenue growth of 8.9% year-over-year from DSW. Note that analysts have underestimated the earnings results from each of these companies in three of the past four quarters. Both Collective Brands and DSW have had consensus Buy recommendations for more than 90 days. And the share prices of both stocks have pulled back recently: Collective Brands by 15% and DSW by 4% in the past month. Collective Brands has underperformed the broader markets since the beginning of the year, but DSW has outperformed them. Shares of both stocks were trading higher in morning trading today. Competitor Brown Shoe

reports first-quarter earnings on Wednesday. It is expected to post per-share earnings that are lower than a year ago.