As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the footwear industry, including Steven Madden (NASDAQ:SHOO) 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 Q1. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 5.5% on average since the latest earnings results.
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 $553.5 million, flat year on year. This print fell short of analysts’ expectations by 1%, but it was still an exceptional quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “We were pleased with our performance in the first quarter, as our team’s strong execution of our strategy enabled us to deliver earnings results that significantly exceeded expectations. Looking ahead, we face meaningful near-term headwinds and heightened uncertainty due to the impact of new tariffs on goods imported into the United States. We are moving swiftly to adapt to the changing landscape, with a focus on mitigating near-term impacts while positioning the company for long-term growth. We believe our agile business model – combined with our fortress balance sheet – gives us a competitive advantage in dynamic environments, and we are optimistic that the current disruption will create opportunities for market share gains over time.
Steven Madden Total Revenue
The stock is up 34.3% since reporting and currently trades at $26.98.
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 $11.27 billion, down 9.3% year on year, outperforming analysts’ expectations by 2.3%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Nike Total Revenue
The stock is down 13.5% since reporting. It currently trades at $62.15.
The owner of Dr. Scholl's, Caleres (NYSE:CAL) is a footwear company offering a range of styles.
Caleres reported revenues of $614.2 million, down 6.8% year on year, falling short of analysts’ expectations by 1.3%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
Caleres delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 16.4% since the results and currently trades at $13.70.
Founded in 2002, Crocs (NASDAQ:CROX) sells casual footwear and is known for its iconic clog shoe.
Crocs reported revenues of $937.3 million, flat year on year. This result surpassed analysts’ expectations by 3.1%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ constant currency revenue and EPS estimates.
The stock is up 1.6% since reporting and currently trades at $102.58.
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 $412.3 million, up 4.4% year on year. This print beat analysts’ expectations by 4.1%. It was a very strong quarter as it also recorded an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
Wolverine Worldwide pulled off the biggest analyst estimates beat among its peers. The stock is up 25.8% since reporting and currently trades at $18.63.
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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