Collective Brands shares up ahead of earnings

Shares of Collective Brands Inc. rose on Monday, a day before the shoe maker reports its fourth-quarter results.

Susquehanna Financial Group analyst Christopher Svezia said in a note to investors that he expects the company to post a loss of 38 cents per share along with a 1 percent sales decline to $769 million.

Analysts polled by Thomson Reuters, on average, predict a loss of 40 cents per share on revenue of $769 million.

Collective Brands operates Payless ShoeSource and makes shoes including Keds and Saucony through its Stride Rite division. It also licenses shoes such as Airwalk.

"While we would expect the quarter to reflect weak traffic and promotional pricing pressures from competing retailers, we believe Payless ShoeSource managed its vertical operating platform well in its seasonally lowest volume quarter," wrote Svezia.

He kept his "Positive" rating and $11 price target on the stock, although he predicts wholesale sales may be slowing as retailers cut down on ordering amid the recession.

Shares rose 28 cents, or 3.4 percent, to $8.63 during midday trading. The stock has traded between $3.85 and $21 during the past 52 weeks.