Looking back on footwear stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Caleres (NYSE:CAL) and its peers.
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 Q3. As a group, revenues beat analysts’ consensus estimates by 2.7% while next quarter’s revenue guidance was 1.2% below.
In light of this news, share prices of the companies have held steady as they are up 2.3% on average since the latest earnings results.
Weakest Q3: 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 $740.9 million, down 2.8% year on year. This print fell short of analysts’ expectations by 1.4%. Overall, it was a softer quarter for the company with full-year EPS guidance missing analysts’ expectations.
“The third quarter saw progress toward our strategy highlighted by the Brand Portfolio delivering growth, Famous Footwear delivering positive comparable store sales, and both segments increasing market share. That said, performance was below our expectations reflecting softer seasonal demand in the boot category, late receipts of key athletic product at Famous Footwear, and a discrete customer credit issue that impacted shipments. In addition, our business in China was also weaker than planned,” said Jay Schmidt, President and Chief Executive Officer.
Caleres delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 32.4% since reporting and currently trades at $22.45.
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Best Q3: 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 $596.3 million, up 2.9% year on year, outperforming analysts’ expectations by 3.2%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.2% since reporting. It currently trades at $37.
Crocs (NASDAQ:CROX)
Founded in 2002, Crocs (NASDAQ:CROX) sells casual footwear and is known for its iconic clog shoe.Crocs reported revenues of $1.06 billion, up 1.6% year on year, exceeding analysts’ expectations by 1%. Still, it was a mixed quarter as it posted EPS guidance for next quarter missing analysts’ expectations significantly.
As expected, the stock is down 23.7% since the results and currently trades at $105.31.
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 $624.7 million, up 13% year on year. This print beat analysts’ expectations by 1.7%. It was a satisfactory quarter as it also put up a decent beat of analysts’ adjusted operating income estimates.
The stock is down 3.4% since reporting and currently trades at $42.74.
Skechers (NYSE:SKX)
Synonymous with "dad shoe", Skechers (NYSE:SKX) is a footwear company renowned for its comfortable, stylish, and affordable shoes for all ages.Skechers reported revenues of $2.35 billion, up 15.9% year on year. This result topped analysts’ expectations by 1.8%. Taking a step back, it was a mixed quarter as it also recorded a solid beat of analysts’ constant currency revenue estimates but a miss of analysts’ adjusted operating income estimates.
The stock is up 7.5% since reporting and currently trades at $66.29.
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This content was originally published on Stock Story
