Wrapping up Q1 earnings, we look at the numbers and key takeaways for the footwear stocks, 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 Q1. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 5.4% 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 $937.3 million, flat year on year. This print exceeded analysts’ expectations by 3.1%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ constant currency revenue and EPS estimates.
"We are incredibly proud of our better-than-expected first quarter performance despite what has been an increasingly volatile macroeconomic backdrop since the onset of the year. Both our Crocs and HEYDUDE brands contributed to the outperformance with gross margins, operating margins, adjusted earnings per share, and cash flow coming in above plan. Our financial strength enabled us to return shareholder value through $61 million in share repurchases, while remaining well within our net leverage target range," said Andrew Rees, Chief Executive Officer.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $100.
Is now the time to buy Crocs? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 and EBITDA estimates.
The market seems happy with the results as the stock is up 15.1% since reporting. It currently trades at $72.
Is now the time to buy Nike? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $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 estimates and a significant miss of analysts’ EPS estimates.
Caleres delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 18.3% since the results and currently trades at $13.39.
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 $412.3 million, up 4.4% year on year. This print surpassed analysts’ expectations by 4.1%. It was a very strong quarter as it also produced a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
Wolverine Worldwide achieved the biggest analyst estimates beat among its peers. The stock is up 25.3% since reporting and currently trades at $18.56.
Read our full, actionable report on Wolverine Worldwide here, it’s free.
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 $474 million, up 3.6% year on year. This result topped analysts’ expectations by 2.2%. Overall, it was a strong quarter as it also put up a solid beat of analysts’ adjusted operating income estimates and full-year EPS guidance topping analysts’ expectations.
The stock is flat since reporting and currently trades at $22.48.
Read our full, actionable report on Genesco here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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