Are you a shoe fanatic? Do you find yourself hitting the department store every payday looking for a new pair of kicks? If so, there is good news for you. Your shoe buying passion could put you in position to profit. Many shoe manufacturing companies make great investments. They provide a valuable good that customers need and are paid a tidy sum for their wares. (You know more about stocks than you think. Don't miss Invest In What You Know.)

IN PICTURES: 9 Ways To Trim The Fat From Your Spending

Steven Madden
Steven Madden (Nasdaq:SHOO) may be a small company but the company has been delivering big results. The company has been making affordable comfortable footwear for men and women since 1990 with brands such as Steve Madden Kids, Madden Girl, Stevies, Steven, Madden Girl, Steve Madden Men's, Steve Madden Fix, Olsenboye, Candies, Elizabeth and James. Customers love the one-of-a-kind unique designs that come from Steve Madden.

Investors seem to love them too. Shares of Steve Madden are up 1186% over the past 10 years. That's a phenomenal return for such a young company! The shoe company has increased earnings 19% over the past five years and expects to generate returns in the mid-teens going forward. The company is projected to have over $600 million dollars in sales for the year which would represent four straight years of consecutive revenue growth. With solid earnings growth and no debt, Steven Madden looks like the company is here to stay.

The name Nike (NYSE:NKE) is synonymous with athletic footwear and apparel. Nike's "Just Do It" logo is recognized around the world. For everything from running shoes to football cleats Nike has got you covered. Nike outfits NBA stars like Kobe Bryant, NFL stars like Drew Brees, and golf icon Tiger Woods. The company has been around since 1964 and shows no signs of slowing down. (Learn more about the golf sensation in The Tiger Woods Effect - $12 Billion Wiped Out.)

The company has done a great job of delivering consistent sustainable profit growth for shareholders achieving its goals. Nike is on pace to earn over $20 billion dollars in revenue this year which would be a 13% increase over last year. Investors have been rewarded with a 308% return over the past 10 years. That's a great return during a lost decade for the stock market.

Heely's (Nasdaq:HLYS) is famous for its heeled footwear. The company makes those cool roller skating shoes that kids seem to love. The fun thing about Heely's shoes is that the shoe's wearer can switch between running and rolling quickly. All the wearer has to do is shift their weight to start skating. Heely's is more than just its two-in-one shoes. The company makes traditional non-wheeled shoes as well. (Are trendy products like Heely's worth investing in? Find out more in Investing In Fads.)

Investors that like Heely's products also find its stock a reasonable buy. Shares trade for just $2.50 per share as the company has seen its revenue decline substantially each of the past three years. Revenue, profit margins and net income have all turned into the red. The stock is down 92% over the past 10 years. The good news for investors is that shares of Heely's are trading for less than book value and the company has no debt. Heely's is a speculative play as investors have to see if the shoes are just a fad or a fixture.

Deckers Outdoor Group
Have you ever wondered who makes those popular UGG boots that you see all over the place? The answer is Deckers (Nasdaq:DECK). Deckers is responsible for the Teva, UGG, Simple, Tsubo, Ahnu and Mozo brands. The company makes a variety of open and closed toe shoes for all types of shoppers. Deckers has been around since 1973 and the company continues to expand.

Company management has done a fantastic job increasing the company's market share. Deckers has grown earnings at a 32% clip over the past five years and has produced operating margins and profit margins in the high double-digits. Another advantage for Deckers is that the company has no debt. Deckers has been a remarkable investment over the past decade. The stock is up nearly 3000% over the last 10 years.

IN PICTURES: Learn To Invest In 10 Steps

Whether it's the huge selections of clothing and apparel or just the piano playing, customers love shopping at Nordstrom (NYSE:JWN). Nordstrom is an upscale department store known for its designer clothing and shoes. If you are looking for a top notch shoe, Nordstrom's has it. The company has hundreds of shoe brands including Guess, Kenneth Cole, Marc Jacobs, Fendi, Jimmy Choo and Vera Wang.

The shoe retailer has done a good job of successfully weathering an economic recession that was particularly harsh to retailers. The company's earnings have only fallen off 3% during the past five years. This is good considering that many retailers have closed their doors over the past two years. Despite the bad economy, Nordstrom has been a good investment for its shareholders returning 420% over the past decade. There is no reason that Nordstrom cannot keep up its outstanding performance. (For related reading, take a look at A Map To This Year's Best Shopping Deals.)

The Bottom Line
As you can clearly see, each of these companies is a shoe shopper's dream. So, the next time that you are out shoe shopping, you can use the excuse that you are doing research for a potential investment.

Check out the latest financial news in Water Cooler Finance: History's Biggest Rogue Trading Scandal.

Related Articles
  1. Stock Analysis

    The Biggest Risks of Investing in Amazon Stock

    Find out which risks are most important to Amazon's shareholders. Learn which operational risks impact share prices and which financial risks affect investors.
  2. Stock Analysis

    How Does Work and Make Money?

    Learn how is taking on retail giants Amazon, Walmart and Costco by promising to save customers an average of 10 to 15% on over 10 million items.
  3. Stock Analysis

    Top 3 Stocks for the Coming Holiday Season

    If you want to buck the bear market trend by going long on consumer stocks, these three might be your best bets.
  4. Investing News

    This is the Fastest-Growing Consumer Complaint

    There’s no way to guarantee that your Social Security number won’t fall into the wrong hands. Here are some ways to make yourself less of a target.
  5. Stock Analysis

    How Does Casper Work and Make Money?

    Learn how the startup Casper is delivering a good night's sleep directly to customers' homes for a fraction of the cost of the competition.
  6. Stock Analysis

    4 Catalysts That Could Propel Best Buy's Stock Forward

    Understand the current Best Buy model and why it has been failing lately. Learn about the top potential catalysts that could increase Best Buy's stock price.
  7. Mutual Funds & ETFs

    ETF Analysis: iShares Globl Consumer Discretionary

    Explore analysis of the iShares Global Consumer Discretionary ETF, and learn about the suitability of this fund that tracks the consumer discretionary sector.
  8. Investing News

    Why Are So Few Women in Finance? It's Complicated

    The number of women entering the finance world continues to decline for a variety of reasons but a game-changing new nonprofit challenges the status quo.
  9. Investing Basics

    A Gluten-Free Makeover For A Supermarket Near You

    The gluten-free diet is changing the food choices of a large number of consumers, and the food industry is taking note and making the needed adjustments.
  10. Stock Analysis

    These Are the Benefits of Investing in Wal-Mart

    Understand how Wal-Mart operates and what makes it a good company despite current stock performance. Learn the top four benefits of investing in Wal-Mart.
  1. How can I invest in electronic retailing (e-tailing)?

    Electronic retail is one of the fastest growing segments of the economy. Every year, more people are choosing to purchase ... Read Full Answer >>
  2. What is the difference between JIT (just in time) and CMI (customer managed inventory)?

    Just-in-time (JIT) inventory management focuses solely on the need to replenish inventory only when it is required, reducing ... Read Full Answer >>
  3. What are some common ways product differentiation is achieved?

    There are many ways to achieve product differentiation, some more common than others. Horizontal Differentiation Horizontal ... Read Full Answer >>
  4. What economic indicators are important to consider when investing in the retail sector?

    The unemployment rate and Consumer Confidence Index (CCI) rank as two of the most important economic indicators to consider ... Read Full Answer >>
  5. What factors make it difficult to compare performance ratios between retail stocks?

    Companies that operate in the retail sector significantly differ in terms of their profitability and efficiency, making stock ... Read Full Answer >>
  6. Which socially responsible retailers appeal most to ethical investors?

    Ethical investors have many reasons to consider companies in the retail sector. The sector is broad and features an abundance ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
  2. Normal Profit

    An economic condition occurring when the difference between a firm’s total revenue and total cost is equal to zero.
  3. Operating Cost

    Expenses associated with the maintenance and administration of a business on a day-to-day basis.
  4. Cost Of Funds

    The interest rate paid by financial institutions for the funds that they deploy in their business. The cost of funds is one ...
  5. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  6. Capitalized Cost

    An expense that is added to the cost basis of a fixed asset on a company's balance sheet. Capitalized Costs are incurred ...
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!