Q3 Earnings Outperformers: Deckers (NYSE:DECK) And The Rest Of The Footwear Stocks

Let’s dig into the relative performance of Deckers (NYSE:DECK) and its peers as we unravel the now-completed Q3 footwear earnings season.

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 3.4% since the latest earnings results.

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 $1.43 billion, up 9.1% year on year. This print exceeded analysts’ expectations by 0.8%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ EBITDA estimates but full-year revenue guidance missing analysts’ expectations.

“HOKA and UGG again delivered double-digit growth in the second quarter, reflecting strong performance and international momentum for these powerful brands,” said Stefano Caroti, President and Chief Executive Officer.

Deckers scored the fastest revenue growth but had the weakest full-year guidance update of the whole group. Still, the market seems discontent with the results. The stock is down 5.6% since reporting and currently trades at $100.29.

Is now the time to buy Deckers? 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 estimates and a beat of analysts’ EPS estimates.

Nike achieved 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 5.6% since reporting. It currently trades at $65.84.

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.

As expected, the stock is down 2.9% since the results and currently trades at $13.12.

Read our full analysis of Caleres’s results here.

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 $616.2 million, up 3.3% year on year. This result was in line with analysts’ expectations. Aside from that, it was a softer quarter as it recorded full-year EPS guidance missing analysts’ expectations significantly and a significant miss of analysts’ EPS estimates.

The stock is down 31.7% since reporting and currently trades at $24.01.

Read our full, actionable report on Genesco 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 print topped analysts’ expectations by 1.3%. Aside from that, it was a mixed quarter as it also logged 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 16.5% since reporting and currently trades at $18.44.

Read our full, actionable report on Wolverine Worldwide here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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