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 Caleres (NYSE:CAL) 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 8 footwear stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was 34% below.
Thankfully, share prices of the companies have been resilient as they are up 8.2% on average since the latest earnings results.
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. This print was in line with analysts’ expectations, but overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income estimates.
“While we did experience headwinds due to market uncertainty, we demonstrated the strength and resilience of our company this quarter. Sales trends improved sequentially in both segments of our business and we saw market share gains in women’s fashion footwear and in shoe chains. We experienced strength in Lead Brands, our Brand Portfolio direct-to-consumer channels, and international. We also saw significant improvement in sales trends at Famous Footwear in July and continuing through August,” said Jay Schmidt, President and Chief Executive Officer.
Interestingly, the stock is up 1.6% since reporting and currently trades at $15.20.
Read our full report on Caleres here, it’s free.
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 $11.1 billion, down 12% year on year, outperforming analysts’ expectations by 3.4%. The business had an exceptional quarter with an impressive beat of analysts’ constant currency revenue estimates and a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 16% since reporting. It currently trades at $72.56.
Is now the time to buy Nike? Access our full analysis of the earnings results 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 $559 million, up 6.8% year on year, falling short of analysts’ expectations by 3.5%. It was a softer quarter as it posted and a significant miss of analysts’ EPS estimates.
Steven Madden delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 23.5% since the results and currently trades at $32.49.
Read our full analysis of Steven Madden’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 $2.44 billion, up 13.1% year on year. This print surpassed analysts’ expectations by 3.7%. Overall, it was an exceptional quarter as it also recorded a beat of analysts’ EPS estimates.
The stock is flat since reporting and currently trades at $63.17.
Read our full, actionable report on Skechers here, it’s free.
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 $474.2 million, up 11.5% year on year. This result topped analysts’ expectations by 5.1%. It was an exceptional quarter as it also put up a beat of analysts’ EPS and EBITDA estimates.
The stock is up 30.4% since reporting and currently trades at $30.65.
Read our full, actionable report on Wolverine Worldwide here, it’s free.
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.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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