Footwear Stocks Q2 In Review: Skechers (NYSE:SKX) Vs Peers

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the footwear stocks, including Skechers (NYSE:SKX) 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 satisfactory Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 4.4% above.

Big picture, the Federal Reserve has a dual mandate of inflation and employment. The former had been running hot throughout 2021 and 2022 but cooled towards the central bank's 2% target as of late. This prompted the Fed to cut its policy rate by 50bps (half a percent) in September 2024. Given recent employment data that suggests the US economy could be wobbling, the markets will be assessing whether this rate and future cuts (the Fed signaled more to come in 2024 and 2025) are the right moves at the right time or whether they're too little, too late for a macro that has already cooled.

In light of this news, footwear stocks have held steady with share prices up 3.5% on average since the latest earnings results.

Skechers (NYSE:SKX)

Synonymous with "dad shoe", Skechers (NYSE:SKX) is a footwear company renowned for its comfortable, stylish, and affordable shoes for all ages.

Skechers reported revenues of $2.16 billion, up 7.2% year on year. This print fell short of analysts’ expectations by 3.5%. Overall, it was a mixed quarter for the company with revenue guidance for next quarter exceeding analysts’ expectations but a miss of analysts’ constant currency revenue estimates.

Skechers achieved the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 5% since reporting and currently trades at $66.89.

Is now the time to buy Skechers? Access our full analysis of the earnings results here, it’s free.

Best Q2: 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 $525.2 million, flat year on year, outperforming analysts’ expectations by 2.5%. The business had a very strong quarter with an impressive beat of analysts’ operating margin and earnings estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 11.2% since reporting. It currently trades at $26.16.

Is now the time to buy Genesco? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: 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 $683.3 million, down 1.8% year on year, falling short of analysts’ expectations by 5.6%. It was a disappointing quarter as it posted a miss of analysts’ operating margin and earnings estimates.

Caleres delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 14.1% since the results and currently trades at $31.99.

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 $1.11 billion, up 3.6% year on year. This number met analysts’ expectations. Aside from that, it was a mixed quarter as it underperformed in other aspects of the business.

The stock is up 4.4% since reporting and currently trades at $140.40.

Read our full, actionable report on Crocs here, it’s free.

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 $11.59 billion, down 10.4% year on year. This result was in line with analysts’ expectations. Overall, it was a mixed quarter as it also put up an impressive beat of analysts’ earnings estimates.

The stock is down 6.9% since reporting and currently trades at $82.95.

Read our full, actionable report on Nike here, it’s free.

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