Let's dig into the relative performance of Steven Madden (NASDAQ:SHOO) and its peers as we unravel the now-completed Q1 footwear earnings season.
Before the advent of the internet, styles changed, but consumers mainly bought shoes by visiting local brick-and-mortar shoe, department, and specialty stores. Today, not only do styles change more frequently as fads travel through social media and the internet but consumers are also shifting the way they buy their goods, favoring omnichannel and e-commerce experiences. Some footwear companies have made concerted efforts to adapt while those who are slower to move may fall behind.
The 8 footwear stocks we track reported a strong Q1; on average, revenues beat analyst consensus estimates by 4.1%. while next quarter's revenue guidance was in line with consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, but footwear stocks have shown resilience, with share prices up 7.8% on average since the previous earnings results.
Steven Madden (NASDAQ:SHOO) As seen in the infamous Wolf of Wall Street movie, Steven Madden (NASDAQ:SHOO) is a fashion brand famous for its trendy and innovative footwear, appealing to a young and style-conscious audience.
Steven Madden reported revenues of $552.4 million, up 19.1% year on year, topping analysts' expectations by 5.2%. It was a strong quarter for the company, with a solid beat of analysts' earnings estimates and a decent beat of analysts' operating margin estimates.
Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “We got off to a strong start to 2024, with first quarter revenue increasing 19% and Adjusted diluted EPS rising 30% compared to the same period in 2023. We also demonstrated tangible progress on our key strategic initiatives, with double-digit percentage revenue growth in international markets, non-footwear categories and direct-to-consumer channels as well as a return to year-over-year revenue growth in the U.S. wholesale footwear business. Looking ahead, we are confident that the continued execution of our strategy will enable us to drive sustainable revenue and earnings growth and create significant value for our stakeholders over the long term.”
The stock is up 8.3% since the results and currently trades at $43.77.
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Best Q1: Genesco (NYSE:NYSE:GCO) Spanning a broad range of styles, brands, and prices, Genesco (NYSE:GCO) sells footwear, apparel, and accessories through multiple brands and banners.
Genesco reported revenues of $457.6 million, down 5.3% year on year, outperforming analysts' expectations by 2.7%. It was an impressive quarter for the company, with optimistic earnings guidance for the full year and a solid beat of analysts' earnings estimates.
The stock is down 10.7% since the results and currently trades at $24.39.
Slowest Q1: Wolverine Worldwide (NYSE:NYSE:WWW) Founded in 1883, Wolverine Worldwide (NYSE:WWW) is a global footwear company with a diverse portfolio of brands including Merrell, Hush Puppies, and Saucony.
Wolverine Worldwide reported revenues of $390.8 million, down 24.5% year on year, exceeding analysts' expectations by 8.1%. It was an ok quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' operating margin estimates.
Wolverine Worldwide pulled off the biggest analyst estimates beat but had the slowest revenue growth and slowest revenue growth in the group. The stock is up 21.1% since the results and currently trades at $13.83.
Caleres (NYSE:CAL) The owner of Dr. Scholl's, Caleres (NYSE:CAL) is a footwear company offering a range of styles.
Caleres reported revenues of $659.2 million, down 0.5% year on year, falling short of analysts' expectations by 0.8%. It was a solid quarter for the company, with optimistic earnings guidance for the next quarter and a narrow beat of analysts' operating margin estimates .
Caleres had the weakest performance against analyst estimates among its peers. The stock is down 8.8% since the results and currently trades at $33.46.
Crocs (NASDAQ:CROX) Founded in 2002, Crocs (NASDAQ:CROX) sells casual footwear and is known for its iconic clog shoe.
Crocs reported revenues of $938.6 million, up 6.2% year on year, surpassing analysts' expectations by 6.1%. It was a very strong quarter for the company, with an impressive beat of analysts' constant currency revenue estimates.
The stock is up 23.4% since the results and currently trades at $156.37.
