However, here's something that isn't so disappointing. The 59-cent earnings number beat expectations by quite a wide margin. According to Earnings.com, analysts were counting on something more like 47 cents per share for the bottom line.

Collective Brands operates the Payless and Stride Rite trademarks. Both have excellent brand equities when it comes to consumer acceptance. Although I don't like the declines in earnings and same-store sales, I nevertheless think that the company should do well over time. I myself shop at Payless.

The stock for this business has been strong. One would think it would be because of the defensive nature of its product. I mean, everyone needs shoes, right? Even during a recession, people can't walk around barefoot. And Payless is supposed to target value shoppers.

However, a lot of the recent rise in the stock doesn't really have anything to do with investors looking to play defense. The performance is merely related to the recent euphoria on Wall Street.

I think Collective Brands may be a good trade on a pullback (use a tight stop to protect yourself if you do decide to try the stock out). Why do I say this? Well, the momentum seems solid on this name, and we will be heading into the back-to-school consuming season soon (I know, the summer is just about to begin, don't rush things!). I don't think this trade is without risk, though (hence my comment about the stop). I hate buying high, and with the run-up, the stock is kind of high. Still, the tape is the tape, so Collective Brands is at least worth some investigation.

Disclosure: I don't own any company mentioned; positions can change without notice.