Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Genesco (NYSE:GCO) and the best and worst performers in the footwear industry.
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 8.8% on average since the previous earnings results.
Best Q1: Genesco (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, topping 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.
Mimi E. Vaughn, Genesco’s Board Chair, President and Chief Executive Officer, said, “Against continued headwinds in the operating environment, we executed to our strategic plan to deliver top and bottom-line results that were ahead of our expectations, led by our Journeys business. With new Journeys leadership in place, I am encouraged by the traction we are seeing thus far, as we work to dramatically accelerate the improvement, elevate our product assortments and enhance the experience for our consumers. In the meantime, our efforts to reduce costs and optimize our store portfolio are resulting in a leaner, more productive operating model, which will provide a nice profit tailwind as our sales improve.”
The stock is down 7.7% since the results and currently trades at $25.21.
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Deckers (NYSE:NYSE:DECK) Established in 1973, Deckers (NYSE:DECK) is a footwear and apparel conglomerate with a portfolio of lifestyle and performance brands.
Deckers reported revenues of $959.8 million, up 21.2% year on year, outperforming analysts' expectations by 8%. It was a very strong quarter for the company, with an impressive beat of analysts' constant currency revenue estimates.
Deckers pulled off the fastest revenue growth among its peers. The stock is up 8.3% since the results and currently trades at $980.
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 delivered the biggest analyst estimates beat but had the slowest revenue growth and slowest revenue growth in the group. The stock is up 22.2% since the results and currently trades at $13.95.
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 5.6% since the results and currently trades at $34.6.
Nike (NYSE:NYSE:NKE) Originally selling Japanese Onitsuka Tiger sneakers as Blue Ribbon Sports, Nike (NYSE:NKE) is a global titan in athletic footwear, apparel, equipment, and accessories.
Nike reported revenues of $12.43 billion, flat year on year, surpassing analysts' expectations by 1.1%. It was an ok quarter for the company, with a narrow beat of analysts' operating margin estimates.
The stock is down 3.6% since the results and currently trades at $97.2.
