Let’s dig into the relative performance of Wolverine Worldwide (NYSE:WWW) and its peers as we unravel the now-completed Q2 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 6 footwear stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 4.4% above.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data, and while some footwear stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.7% since the latest earnings results.
Best Q2: 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 $424.8 million, down 18.4% year on year. This print exceeded analysts’ expectations by 3.4%. Overall, it was a solid quarter for the company with an impressive beat of analysts’ earnings estimates.
“We delivered better-than-expected revenue and earnings in the second quarter, while continuing to execute our ambitious turnaround plan,” said Chris Hufnagel, President and Chief Executive Officer of Wolverine Worldwide.
Wolverine Worldwide scored the biggest analyst estimates beat but had the slowest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts' consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 8.2% since reporting and currently trades at $12.69.
Is now the time to buy Wolverine Worldwide? Find out by reading the original article on StockStory, it’s free. 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 $523.6 million, up 17.6% year on year, in line with analysts’ expectations. It performed better than its peers, but it was unfortunately a mixed quarter for the company with a decent beat of analysts’ earnings estimates but a miss of analysts’ Wholesale revenue estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2.6% since reporting. It currently trades at $43.28.
Weakest Q2: 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 $12.61 billion, down 1.7% year on year, falling short of analysts’ expectations by 1.9%. It was a mixed quarter for the company with a solid beat of analysts’ earnings estimates but a miss of analysts’ constant currency revenue estimates.
As expected, the stock is down 17.2% since the results and currently trades at $78.03.
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 $825.3 million, up 22.1% year on year, surpassing analysts’ expectations by 2.4%. Taking a step back, it was a mixed quarter for the company with an impressive beat of analysts’ earnings estimates but full-year revenue guidance missing analysts’ expectations.
Deckers achieved the fastest revenue growth but had the weakest full-year guidance update among its peers. The stock is up 11.8% since reporting and currently trades at $944.
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 $2.16 billion, up 7.2% year on year, falling short of analysts’ expectations by 3.5%. Zooming out, it was a mixed quarter for the company with revenue guidance for next quarter exceeding analysts’ expectations but a miss of analysts’ constant currency revenue estimates.
Skechers pulled off the highest full-year guidance raise but had the weakest performance against analyst estimates among its peers. The stock is flat since reporting and currently trades at $63.69.
This content was originally published on Stock Story
