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.

Coach is a Motley Fool Stock Advisor choice. The Fool owns shares of Coach. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Fool contributor Matt Koppenheffer does not own shares of any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or on his RSS feed. The Fool’s disclosure policy assures you no Wookiees were harmed in the making of this article.