Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of shoe retailer Brown Shoe (NYSE: BWS) were off to the races today, tacking on as much as 20% as investors cheered the company's third-quarter results and guidance.

So what: It was a great back-to-school season for Brown Shoe, as the company's Famous Footwear chain registered a 10.6% same-store-sales increase and an overall sales bump of 8.3%. The company's wholesale division -- which sells to customers such as TJX (NYSE: TJX), Target (NYSE: TGT), and Macy's (NYSE: M) -- put up an even more impressive 34% year-over-year sales gain. Total company sales were $716 million, and though margins were lower than last year, a lower tax rate helped the company deliver an earnings increase of 9%. Both sales and earnings per share beat Wall Street estimates.

Now what: The economic shakeout has created a bifurcated retail market, with luxury goods from the likes of Coach (NYSE: COH) and Saks thriving on one end, while stores like Dollar Tree (Nasdaq: DLTR) and Dollar General (NYSE: DG) succeed with value-conscious shoppers on the other end. It would seem that Brown Shoe's value-focused offerings may be hitting a stride with price-conscious consumers, and the company's guidance suggests that this will continue. At the midpoint, both the company's 2010 and 2011 guidance easily exceeded analysts' estimates. Brown Shoe may not be a cocktail-party stock, but strong growth and a reasonable valuation make it worth keeping an eye on.

Want to keep up to date on Brown Shoe? Add it to your watchlist.