Footwear Retailer Stocks Q2 Results: Benchmarking Boot Barn (NYSE:BOOT)
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at footwear retailer stocks, starting with Boot Barn (NYSE:BOOT).
Footwear sales–like their apparel counterparts–are driven by seasons, trends, and innovation more so than absolute need and similarly face the bigger-picture secular trend of e-commerce penetration. Footwear plays a part in societal belonging, personal expression, and occasion, and retailers selling shoes recognize this. Therefore, they aim to balance selection, competitive prices, and the latest trends to attract consumers. Unlike their apparel counterparts, footwear retailers most sell popular third-party brands (as opposed to their own exclusive brands), which could mean less exclusivity of product but more nimbleness to pivot to what’s hot.
The 4 footwear retailer stocks we track reported a mixed Q2. As a group, revenues missed analysts’ consensus estimates by 1% while next quarter’s revenue guidance was in line.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts. Thankfully, footwear retailer stocks have been resilient with share prices up 6.4% on average since the latest earnings results.
Boot Barn (NYSE:BOOT)
With a strong store presence in Texas, California, Florida, and Oklahoma, Boot Barn (NYSE:BOOT) is a western-inspired apparel and footwear retailer.
Boot Barn reported revenues of $423.4 million, up 10.3% year on year. This print exceeded analysts’ expectations by 1.6%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ earnings estimates but underwhelming earnings guidance for the next quarter.
Jim Conroy, President and Chief Executive Officer, commented, “I am very pleased with our first quarter results and want to thank the entire Boot Barn team across the country for excellent execution.”
Boot Barn achieved the biggest analyst estimates beat and highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 33.4% since reporting and currently trades at $154.55.
Is now the time to buy Boot Barn? Access our full analysis of the earnings results here, it’s free.
Best Q2: Foot Locker (NYSE:FL)
Known for store associates whose uniforms resemble those of referees, Foot Locker (NYSE:FL) is a specialty retailer that sells athletic footwear, clothing, and accessories.
Foot Locker reported revenues of $1.9 billion, up 1.9% year on year, in line with analysts’ expectations. The business had a very strong quarter with an impressive beat of analysts’ earnings estimates and optimistic earnings guidance for the full year.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 17.4% since reporting. It currently trades at $27.10.
Is now the time to buy Foot Locker? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Designer Brands (NYSE:DBI)
Founded in 1969 as a shoe importer and distributor, Designer Brands (NYSE:DBI) is an American discount retailer focused on footwear and accessories.
Designer Brands reported revenues of $771.9 million, down 2.6% year on year, falling short of analysts’ expectations by 5.4%. It was a disappointing quarter as it posted underwhelming earnings guidance for the full year and a miss of analysts’ earnings estimates.
Designer Brands delivered the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is flat since the results and currently trades at $5.81.
Read our full analysis of Designer Brands’s results here.
Shoe Carnival (NASDAQ:SCVL)
Known for its playful atmosphere that features carnival elements, Shoe Carnival (NASDAQ:SCVL) is a retailer that sells footwear from mainstream brands for the entire family.
Shoe Carnival reported revenues of $332.7 million, up 12.9% year on year. This print lagged analysts' expectations by 1.1%. Overall, it was a mixed quarter as it also produced underwhelming earnings guidance for the full year and full-year revenue guidance missing analysts’ expectations.
Shoe Carnival scored the fastest revenue growth but had the weakest full-year guidance update among its peers. The stock is up 9.6% since reporting and currently trades at $41.15.
Read our full, actionable report on Shoe Carnival here, it’s free.
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