Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Shoe Carnival (NASDAQ: SCVL) and the best and worst performers in the footwear retailer industry.
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 Q1. As a group, revenues missed analysts’ consensus estimates by 2.8% while next quarter’s revenue guidance was 1.4% below.
While some footwear retailer stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.4% since the latest earnings results.
Best Q1: 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 $277.7 million, down 7.5% year on year. This print fell short of analysts’ expectations by 1.7%, but it was still a very strong quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
“Our first quarter results reflect the continued success of our strategic transformation, with profits outperforming expectations by approximately 10 percent despite the challenging macroeconomic and retail environment,” said Mark Worden, President and Chief Executive Officer.
Shoe Carnival scored the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 5.6% since reporting and currently trades at $19.50.
Is now the time to buy Shoe Carnival? Access our full analysis of the earnings results here, it’s free.
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 $453.7 million, up 16.8% year on year, falling short of analysts’ expectations by 0.9%. The business performed better than its peers, but it was unfortunately a mixed quarter with a solid beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations.
Boot Barn pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 22.7% since reporting. It currently trades at $163.29.
Is now the time to buy Boot Barn? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $686.9 million, down 8% year on year, falling short of analysts’ expectations by 6.3%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Designer Brands delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 38.3% since the results and currently trades at $2.29.
Read our full analysis of Designer Brands’s results here.
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 $1.79 billion, down 4.5% year on year. This number missed analysts’ expectations by 2.3%. Overall, it was a slower quarter as it also logged a significant miss of analysts’ EPS estimates.
The stock is flat since reporting and currently trades at $23.99.
Read our full, actionable report on Foot Locker 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.
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