The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how footwear stocks fared in Q3, starting with Genesco (NYSE:GCO).
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 4.5% on average since the latest earnings results.
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. This print exceeded analysts’ expectations by 3.2%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
Mimi E. Vaughn, Genesco’s Board Chair, President and Chief Executive Officer, said, “Our quarterly performance once again exceeded expectations and marked a return to positive overall comparable sales. Following a strong start to the third quarter including the heart of back-to-school, sales trends at Journeys remained robust in September and October, fueling a double-digit comp gain for the business. This result was driven by the initial phase of Journeys’ strategic growth plan which has focused on elevating the consumer experience including improving the product assortment and visually resetting our stores. EPS would have been stronger without the shift of an important back-to-school week into the second quarter this year.”
Interestingly, the stock is up 9.5% since reporting and currently trades at $41.01.
Is now the time to buy Genesco? Find out by reading the original article on StockStory, it’s free.
Nike (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 $12.35 billion, down 7.7% year on year, outperforming analysts’ expectations by 2%. The business had an exceptional quarter with a solid 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 4.9% since reporting. It currently trades at $73.32.
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, falling short of analysts’ expectations by 1.4%. It was a softer quarter as it posted full-year EPS guidance missing analysts’ expectations significantly and a miss of analysts’ EPS estimates.
Caleres delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 39.1% since the results and currently trades at $20.21.
Wolverine Worldwide (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 $440.1 million, down 7% year on year. This print beat analysts’ expectations by 4.4%. Overall, it was a strong quarter as it also produced a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
Wolverine Worldwide pulled off the highest full-year guidance raise among its peers. The stock is up 42.5% since reporting and currently trades at $22.89.
Deckers (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 $1.31 billion, up 20.1% year on year. This result surpassed analysts’ expectations by 9%. It was a very strong quarter as it also put up an impressive beat of analysts’ constant currency revenue and EBITDA estimates.
Deckers scored the biggest analyst estimates beat and fastest revenue growth, but had the weakest full-year guidance update among its peers. The stock is up 40.7% since reporting and currently trades at $214.02.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.Want to invest in winners with rock-solid fundamentals? Check out our and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
This content was originally published on Stock Story
GCO) Impresses">