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What: Shares of footwear retailer Brown Shoe Co. (NYSE: BWS) plummeted more than 20% on Tuesday after its quarterly results fell well below Wall Street expectations.

So what: Hurt by margin-hampering sourcing and supply issues at its wholesale segment, Brown Shoe's fourth-quarter profit fell 34% to $0.08 per share, versus the average analyst estimate of $0.14 per share. Brown Shoe's shares had been rallying nicely over the past several months on an encouraging rise in revenue, so it's no surprise that today's miss has Mr. Market very disappointed.

Now what: I'd continue to stay on the sidelines at this point. While Brown Shoe's full-year profit forecast of $1.37-$1.47 per share did manage to meet expectations, the company's long-term fundamentals just aren't attractive enough to buy into. And with DSW (NYSE: DSW) also sinking today on disappointing earnings, Fools might do well to take a step back from the retail shoe space altogether.

Interested in more info on Brown Shoe? Add it to your watchlist.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

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