Q3 Earnings Outperformers: Shoe Carnival (NASDAQ:SCVL) And The Rest Of The Apparel and Footwear Retail Stocks

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Shoe Carnival (NASDAQ:SCVL) and the rest of the apparel and footwear retail stocks fared in Q3.

Apparel and footwear was once a category thought to be relatively safe from major e-commerce penetration because of the need to try on, touch, and feel products, but the category is now meaningfully transacted online. Everyone still needs clothes and shoes to go outside unless they want some curious (or horrified) looks. But this ongoing digitization is forcing apparel and footwear retailers–that once only had brick-and-mortar stores–to respond with omnichannel offerings. The online shopping experience continues to improve and retail foot traffic in places like shopping malls continues to stagnate, so the evolution of clothing and shoes sellers marches on.

The 12 apparel and footwear retail stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 0.7% below.

Luckily, apparel and footwear retail stocks have performed well with share prices up 23.8% on average since the latest earnings results.

Shoe Carnival (NASDAQ:SCVL)

Known for its playful atmosphere that features carnival elements, Shoe Carnival (NASDAQ:SCVL) is a retailer that sells footwear from mainstream brands for the entire family.

Shoe Carnival reported revenues of $297.2 million, down 3.2% year on year. This print exceeded analysts’ expectations by 0.7%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.

“Third quarter results exceeded expectations. Shoe Station is winning - up over 5 percent in sales with 260 basis point margin expansion. We’re consolidating to one brand because the performance gap is undeniable. Over time, this unlocks $20 million in savings and $100 million in working capital to fund growth from our debt-free balance sheet,” said Mark Worden, President and Chief Executive Officer.

Interestingly, the stock is up 14.6% since reporting and currently trades at $19.13.

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

Best Q3: Zumiez (NASDAQ:ZUMZ)

With store associates called “Zumiez Stash Members”, Zumiez (NASDAQ:ZUMZ) is a specialty retailer of street and skate apparel, footwear, and accessories.

Zumiez reported revenues of $239.1 million, up 7.5% year on year, outperforming analysts’ expectations by 2%. The business had an exceptional quarter with a beat of analysts’ EPS and EBITDA estimates.

Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 5% since reporting. It currently trades at $25.89.

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

Weakest Q3: Torrid (NYSE:CURV)

Promoting a message of body positivity and inclusiveness, Torrid Holdings (NYSE:CURV) is a plus-size women’s apparel and accessories retailer.

Torrid reported revenues of $235.2 million, down 10.8% year on year, falling short of analysts’ expectations by 2%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.

Torrid delivered the highest full-year guidance raise but had the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 15.9% since the results and currently trades at $1.08.

Read our full analysis of Torrid’s results here.

Abercrombie and Fitch (NYSE:ANF)

Founded as an outdoor and sporting brand, Abercrombie & Fitch (NYSE:ANF) evolved to become a specialty retailer that sells its own brand of fashionable clothing to young adults.

Abercrombie and Fitch reported revenues of $1.29 billion, up 6.8% year on year. This result surpassed analysts’ expectations by 0.9%. More broadly, it was a satisfactory quarter as it also logged full-year EPS guidance beating analysts’ expectations but EPS guidance for next quarter slightly missing analysts’ expectations.

The stock is up 89.7% since reporting and currently trades at $124.95.

Read our full, actionable report on Abercrombie and Fitch here, it’s free.

Gap (NYSE:GAP)

Operating under the Gap, Old Navy, Banana Republic, and Athleta brands, Gap (NYSE:GAP) is an apparel and accessories retailer selling casual clothing to men, women, and children.

Gap reported revenues of $3.94 billion, up 3% year on year. This number beat analysts’ expectations by 0.8%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ gross margin estimates.

The stock is up 23.8% since reporting and currently trades at $28.50.

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

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