As the Q3 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 7 footwear stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 7.9% above.
While some footwear stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.5% 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 $667.9 million, up 6.9% year on year. This print fell short of analysts’ expectations by 4%, but it was still a strong quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and revenue guidance for next quarter exceeding analysts’ expectations.
Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “As anticipated, the third quarter was challenging, driven largely by the impact of new tariffs on goods imported into the United States. That said, we are pleased with underlying demand for our brands and products. Consumers have responded favorably to our Fall assortments, particularly in our flagship Steve Madden brand. The improved trend in Steve Madden, together with our tariff mitigation strategies and the contribution from our recent acquisition Kurt Geiger, position us to deliver stronger financial results beginning in the fourth quarter.”
Steven Madden delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 34.1% since reporting and currently trades at $44.04.
Is now the time to buy Steven Madden? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q3: 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.
Nike delivered the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2.9% since reporting. It currently trades at $67.75.
Is now the time to buy Nike? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q3: 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 $790.1 million, up 6.6% year on year, exceeding analysts’ expectations by 2.8%. Still, it was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.
The stock is flat since the results and currently trades at $13.65.
Read our full analysis of Caleres’s results here.
Crocs (NASDAQ:CROX)
Founded in 2002, Crocs (NASDAQ:CROX) sells casual footwear and is known for its iconic clog shoe.
Crocs reported revenues of $996.3 million, down 6.2% year on year. This result topped analysts’ expectations by 3.3%. Overall, it was an exceptional quarter as it also logged a solid beat of analysts’ constant currency revenue estimates and EPS guidance for next quarter exceeding analysts’ expectations.
Crocs had the slowest revenue growth among its peers. The stock is up 6.8% since reporting and currently trades at $90.48.
Read our full, actionable report on Crocs here, it’s free for active Edge members.
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 $470.3 million, up 6.9% year on year. This number surpassed analysts’ expectations by 1.3%. Zooming out, it was a mixed quarter as it also recorded a decent beat of analysts’ EBITDA estimates but full-year revenue guidance meeting analysts’ expectations.
Wolverine Worldwide pulled off the highest full-year guidance raise among its peers. The stock is down 16.8% since reporting and currently trades at $18.37.
Read our full, actionable report on Wolverine Worldwide here, it’s free for active Edge members.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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