Reflecting On Footwear Stocks’ Q1 Earnings: Skechers (NYSE:SKX)

As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the footwear industry, including Skechers (NYSE:SKX) 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 6 footwear stocks we track reported a solid Q1; on average, revenues beat analyst consensus estimates by 5.1%. while next quarter's revenue guidance was in line with consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, but footwear stocks have exhibited impressive performance, with the share prices up 13.2% on average since the previous earnings results.

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 $2.25 billion, up 12.5% year on year, topping analysts' expectations by 2.3%. It was a 'beat and raise' quarters you love to see. Skechers blew past analysts' constant currency revenue expectations this quarter. Looking forward to the full year, the company raised its revenue and EPS guidance for 2024 and both are comfortably ahead of analysts' expectations.

“We began the new year by setting a new sales record, delivering results above expectations, and further expanding the Skechers brand globally,” said Robert Greenberg, Chief Executive Officer of Skechers.

Skechers pulled off the highest full-year guidance raise of the whole group. The stock is up 18.8% since the results and currently trades at $69.83.

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

Best Q1: 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 $959.8 million, up 21.2% year on year, outperforming analysts' expectations by 8%. It was a very strong quarter for the company, with an impressive beat of analysts' constant currency revenue and earnings estimates.

Deckers pulled off the fastest revenue growth among its peers. The stock is up 15.5% since the results and currently trades at $1,045.59.

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

Slowest Q1: 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 $390.8 million, down 24.5% year on year, exceeding analysts' expectations by 8.1%. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' operating margin estimates.

Wolverine Worldwide achieved the biggest analyst estimates beat but had the slowest revenue growth and slowest revenue growth in the group. The stock is up 20% since the results and currently trades at $13.71.

Read our full analysis of Wolverine Worldwide'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 $12.43 billion, flat year on year, surpassing analysts' expectations by 1.1%. It was a decent quarter for the company: Nike blew past analysts' EPS expectations. Its revenue and gross margin narrowly outperformed Wall Street's estimates, driven by strong sales of its Nike-branded goods (this excludes Converse, whose revenue dropped 20% on a constant currency basis).

Nike had the weakest performance against analyst estimates among its peers. The stock is down 9.4% since the results and currently trades at $91.35.

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 $552.4 million, up 19.1% year on year, surpassing analysts' expectations by 5.2%. It was a strong quarter for the company, with a solid beat of analysts' revenue and earnings estimates.

The stock is up 7.6% since the results and currently trades at $43.5.

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

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