Footwear Retailer Stocks Q3 Highlights: Shoe Carnival (NASDAQ:SCVL)

Earnings results often give us a good indication of what direction a company will take in the months ahead. With Q3 now behind us, let’s have a look at Shoe Carnival (NASDAQ:SCVL) and its peers.

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 weak Q3; on average, revenues missed analyst consensus estimates by 1.8% while next quarter's revenue guidance was 3% below consensus. Valuation multiples for growth stocks have reverted to their historical means after reaching highs in early 2021, and footwear retailer stocks have not been spared, with share prices down 12.6% on average, since the previous earnings results.

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 $319.9 million, down 6.4% year on year, falling short of analyst expectations by 0.4%. It was a weak quarter for the company, with underwhelming earnings guidance for the full year.

“Our team delivered a successful Back-to-School season, with solid growth in the children’s business, double-digit Shoe Station banner growth and continued market share gains in the family footwear channel. After Labor Day, Shoe Carnival banner results softened and were below our expectations, as persistently hot and dry weather led to soft seasonal sales and a sluggish start to the boot season,” said Mark Worden, President and Chief Executive Officer.

Shoe Carnival achieved the biggest analyst estimates beat and highest full-year guidance raise of the whole group. The stock is up 6% since the results and currently trades at $25.63.

Read our full report on Shoe Carnival here, it's free.

Best Q3: 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 $374.5 million, up 6.5% year on year, falling short of analyst expectations by 0.7%. It was a weaker quarter for the company, with underwhelming earnings guidance for the next quarter.

Boot Barn pulled off the fastest revenue growth but had the weakest full-year guidance update among its peers. The stock is up 5.5% since the results and currently trades at $73.08.

Is now the time to buy Boot Barn? Access our full analysis of the earnings results here, it's free.

Weakest Q3: 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 $786.3 million, down 9.1% year on year, falling short of analyst expectations by 4.4%. It was a weak quarter for the company, with underwhelming earnings guidance for the full year and a miss of analysts' revenue estimates.

Designer Brands had the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is down 34.1% since the results and currently trades at $8.45.

Read our full analysis of Designer Brands's results here.

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 $579.3 million, down 4.1% year on year, falling short of analyst expectations by 1.6%. It was a weak quarter for the company, with underwhelming earnings guidance for the full year and a miss of analysts' earnings estimates.

The stock is down 25.1% since the results and currently trades at $28.04.

Read our full, actionable report on Genesco here, it's free.

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The author has no position in any of the stocks mentioned