Looking back on footwear stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Crocs (NASDAQ:CROX) 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 Q3. As a group, revenues beat analysts’ consensus estimates by 2.7% while next quarter’s revenue guidance was 1.2% below.
In light of this news, share prices of the companies have held steady as they are up 2.4% on average since the latest earnings results.
Crocs (NASDAQ:CROX)
Founded in 2002, Crocs (NASDAQ:CROX) sells casual footwear and is known for its iconic clog shoe.
Crocs reported revenues of $1.06 billion, up 1.6% year on year. This print exceeded analysts’ expectations by 1%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ constant currency revenue estimates but EPS guidance for next quarter missing analysts’ expectations significantly.
"We reported third quarter results which exceeded our Enterprise guidance on sales and profitability," said Andrew Rees, Chief Executive Officer.
Unsurprisingly, the stock is down 21.4% since reporting and currently trades at $108.50.
Is now the time to buy Crocs? Access our full analysis of the earnings results here, it’s free.
Best Q3: Genesco (NYSE:GCO)
Spanning a broad range of styles, brands, and prices, Genesco (NYSE:GCO) sells footwear, apparel, and accessories through multiple brands and banners.
Genesco reported revenues of $596.3 million, up 2.9% year on year, outperforming analysts’ expectations by 3.2%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
The market seems happy with the results as the stock is up 8.3% since reporting. It currently trades at $40.53.
Is now the time to buy Genesco? Access our full analysis of the earnings results here, it’s free.
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 $740.9 million, down 2.8% year on year, falling short of analysts’ expectations by 1.4%. It was a softer quarter as it posted full-year EPS guidance missing analysts’ expectations.
Caleres delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 35% since the results and currently trades at $21.57.
Read our full analysis of Caleres’s results here.
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 $440.1 million, down 7% year on year. This print surpassed analysts’ expectations by 4.4%. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ EPS and adjusted operating income estimates.
Wolverine Worldwide pulled off the highest full-year guidance raise among its peers. The stock is up 34.9% since reporting and currently trades at $21.67.
Read our full, actionable report on Wolverine Worldwide here, it’s free.
Deckers (NYSE:DECK)
Established in 1973, Deckers (NYSE:DECK) is a footwear and apparel conglomerate with a portfolio of lifestyle and performance brands.
Deckers reported revenues of $1.31 billion, up 20.1% year on year. This number topped analysts’ expectations by 9%. It was a very strong quarter as it also produced a solid beat of analysts’ constant currency revenue and EBITDA estimates.
Deckers scored the biggest analyst estimates beat and fastest revenue growth, but had the weakest full-year guidance update among its peers. The stock is up 34.8% since reporting and currently trades at $205.02.
Read our full, actionable report on Deckers 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.
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