The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Crocs (NASDAQ: CROX) and the rest of the footwear stocks fared in Q2.
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 7 footwear stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was 34% below.
While some footwear stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1% since the latest earnings results.
Crocs (NASDAQ: CROX)
Founded in 2002, Crocs (NASDAQ: CROX) sells casual footwear and is known for its iconic clog shoe.
Crocs reported revenues of $1.15 billion, up 3.4% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a decent beat of analysts’ adjusted operating income estimates but a slight miss of analysts’ constant currency revenue estimates.
Unsurprisingly, the stock is down 23.3% since reporting and currently trades at $80.75.
Is now the time to buy Crocs? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q2: 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 $11.72 billion, up 1.1% year on year, outperforming analysts’ expectations by 6.5%. The business had an incredible quarter with an impressive beat of analysts’ constant currency revenue and EPS estimates.
The market seems content with the results as the stock is up 2.3% since reporting. It currently trades at $71.29.
Is now the time to buy Nike? Access our full analysis of the earnings results here, it’s free for active Edge members.
Slowest 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 $658.5 million, down 3.6% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Caleres delivered the slowest revenue growth in the group. As expected, the stock is down 6.9% since the results and currently trades at $13.93.
Read our full analysis of Caleres’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 $546 million, up 4% year on year. This number surpassed analysts’ expectations by 2.6%. Aside from that, it was a mixed quarter as it also recorded a decent beat of analysts’ adjusted operating income estimates but full-year EPS guidance missing analysts’ expectations.
The stock is down 11.5% since reporting and currently trades at $29.20.
Read our full, actionable report on Genesco here, it’s free for active Edge members.
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 $964.5 million, up 16.9% year on year. This print topped analysts’ expectations by 7.2%. It was a very strong quarter as it also produced an impressive beat of analysts’ constant currency revenue and EPS estimates.
Deckers pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 2.7% since reporting and currently trades at $102.20.
Read our full, actionable report on Deckers here, it’s free for active Edge members.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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