Q2 Earnings Outperformers: Deckers (NYSE:DECK) And The Rest Of The Footwear Stocks
Let’s dig into the relative performance of Deckers (NYSE:DECK) 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 8 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.
The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.
In light of this news, footwear stocks have held steady with share prices up 1.6% on average since the latest earnings results.
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 $825.3 million, up 22.1% year on year. This print exceeded analysts’ expectations by 2.4%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ earnings and operating margin estimates.
“As this is my last quarter to report as CEO, I am pleased to share these strong results to kick-off fiscal year 2025,” said Dave Powers, President and Chief Executive Officer.
Deckers achieved the fastest revenue growth but had the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is up 10.5% since reporting and currently trades at $155.50.
Is now the time to buy Deckers? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $525.2 million, flat year on year, outperforming analysts’ expectations by 2.5%. The business had a very strong quarter with an impressive beat of analysts’ operating margin and earnings estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 11.7% since reporting. It currently trades at $26.01.
Is now the time to buy Genesco? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $683.3 million, down 1.8% year on year, falling short of analysts’ expectations by 5.6%. It was a disappointing quarter as it posted a miss of analysts’ earnings estimates.
Caleres delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 16.8% since the results and currently trades at $31.
Read our full analysis of Caleres’s results here.
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. This number came in 3.5% below analysts' expectations. Aside from that, it was a very strong quarter as it also produced revenue guidance for next quarter exceeding analysts’ expectations.
Skechers pulled off the highest full-year guidance raise among its peers. The stock is up 4% since reporting and currently trades at $66.25.
Read our full, actionable report on Skechers here, 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. This result was in line with analysts’ expectations. Aside from that, it was a very strong quarter as it also produced a decent beat of analysts’ operating margin estimates.
The stock is up 7.6% since reporting and currently trades at $47.81.
Read our full, actionable report on Steven Madden here, it’s free.
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