Apparel and Footwear Retail Stocks Q3 Teardown: Shoe Carnival (NASDAQ:SCVL) Vs The Rest

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the apparel and footwear retail industry, including Shoe Carnival (NASDAQ:SCVL) and its peers.

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 in line.

Luckily, apparel and footwear retail stocks have performed well with share prices up 18.5% 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 a solid 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 11.8% since reporting and currently trades at $18.68.

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 its peers, the market seems unhappy with the results as the stock is down 11.9% since reporting. It currently trades at $24.01.

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 12.8% since the results and currently trades at $1.12.

Read our full analysis of Torrid’s results here.

Lululemon (NASDAQ:LULU)

Originally serving yogis and hockey players, Lululemon (NASDAQ:LULU) is a designer, distributor, and retailer of athletic apparel for men and women.

Lululemon reported revenues of $2.57 billion, up 7.1% year on year. This result surpassed analysts’ expectations by 3.7%. It was a strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.

The stock is up 11.3% since reporting and currently trades at $208.75.

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

Urban Outfitters (NASDAQ:URBN)

Founded as a purveyor of vintage items, Urban Outfitters (NASDAQ:URBN) now largely sells new apparel and accessories to teens and young adults seeking on-trend fashion.

Urban Outfitters reported revenues of $1.53 billion, up 12.3% year on year. This print topped analysts’ expectations by 2.6%. Overall, it was a very strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.

The stock is up 5.4% since reporting and currently trades at $71.99.

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

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