Footwear Stocks Q2 Highlights: Caleres (NYSE:CAL)
Wrapping up Q2 earnings, we look at the numbers and key takeaways for the footwear stocks, including Caleres (NYSE:CAL) and its peers.
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 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 3.1% on average since the latest earnings results.
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. This print fell short of analysts’ expectations by 5.6%. Overall, it was a disappointing quarter for the company with a miss of analysts’ earnings estimates.
“Caleres reported second quarter results that were below expectations. While our brands and products continue to resonate with consumers and we remain confident in our long-term vision, our second quarter results in both segments fell short of our potential. Our systems implementation led to lack of visibility that prevented us from delivering our expected results. We also experienced weak seasonal demand and back-to-school business came later than expected,” said Jay Schmidt, president and chief executive officer.
Caleres delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 11% since reporting and currently trades at $33.16.
Read our full report on Caleres here, it’s free.
Best Q2: 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, outperforming analysts’ expectations by 2.4%. The business had a stunning quarter with an impressive beat of analysts’ earnings estimates.
Deckers delivered the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 15.1% since reporting. It currently trades at $162.
Is now the time to buy Deckers? Access our full analysis of the earnings results here, it’s free.
Crocs (NASDAQ:CROX)
Founded in 2002, Crocs (NASDAQ:CROX) sells casual footwear and is known for its iconic clog shoe.
Crocs reported revenues of $1.11 billion, up 3.6% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a solid beat of analysts’ constant currency revenue estimates.
Interestingly, the stock is up 4.4% since the results and currently trades at $140.45.
Read our full analysis of Crocs’s results here.
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 $11.59 billion, down 10.4% year on year. This number met analysts’ expectations. Overall, it was a very mixed quarter: Nike blew past analysts’ EPS expectations. On the other hand, its constant currency revenue declined 9% and unfortunately missed.
The stock is down 8.1% since reporting and currently trades at $81.90.
Read our full, actionable report on Nike 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 number was in line with analysts’ expectations. Aside from that, it was a satisfactory quarter as it also logged a decent beat of analysts’ operating margin estimates but a miss of analysts’ Wholesale revenue estimates.
The stock is up 9.3% since reporting and currently trades at $48.56.
Read our full, actionable report on Steven Madden here, it’s free.
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