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Q3 Footwear Retailer Earnings: Boot Barn (NYSE:BOOT) Impresses

By: StockStory

January 13, 2025 at 04:03 AM EST

BOOT Cover Image

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the footwear retailer industry, including Boot Barn (NYSE: BOOT) 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 slower Q3. As a group, revenues missed analysts’ consensus estimates by 2% while next quarter’s revenue guidance was in line.

While some footwear retailer stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.8% since the latest earnings results.

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 $425.8 million, up 13.7% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a solid beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations.

Mr. Starrett stated, “John Hazen is very highly regarded within the Boot Barn organization and has a diverse background that includes brand building, digital, and store roles. He has a strong track record of growing sales and profits both at Boot Barn and prior to joining the Company. He also has been extremely instrumental in advancing Boot Barn’s customer-facing technology capabilities including many industry-leading applications of artificial intelligence. I am confident in his ability to step into the role as Interim CEO. Personally, I am looking forward to providing oversight and mentorship as Executive Chairman while the Board conducts an internal and external search before making a permanent decision on our next CEO.”

Boot Barn achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $162.

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

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 $306.9 million, down 4.1% year on year, falling short of analysts’ expectations by 3%. The business performed better than its peers, but it was unfortunately a slower quarter with a slight miss of analysts’ gross margin and EBITDA estimates.

The market seems unhappy with the results as the stock is down 6.7% since reporting. It currently trades at $31.24.

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

Weakest Q3: Foot Locker (NYSE: FL)

Known for store associates whose uniforms resemble those of referees, Foot Locker (NYSE: FL) is a specialty retailer that sells athletic footwear, clothing, and accessories.

Foot Locker reported revenues of $1.96 billion, down 1.4% year on year, falling short of analysts’ expectations by 2.1%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.

As expected, the stock is down 15.2% since the results and currently trades at $20.50.

Read our full analysis of Foot Locker’s results here.

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 $777.2 million, down 1.2% year on year. This print missed analysts’ expectations by 3.1%. Overall, it was a softer quarter as it also logged full-year EPS guidance missing analysts’ expectations.

Designer Brands had the weakest performance against analyst estimates among its peers. The stock is up 2.2% since reporting and currently trades at $5.91.

Read our full, actionable report on Designer Brands here, it’s free.

Market Update

Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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