Let's dig into the relative performance of Boot Barn (NYSE:BOOT) and its peers as we unravel the now-completed Q2 footwear retailer earnings season.
Footwear sales–like their apparel counterparts–are driven by seasons, trends, and innovation more so than absolute need and similarly face the bigger-picture secular trend of e-commerce penetration. Footwear plays a part in societal belonging, personal expression, and occasion, and retailers selling shoes recognize this. They therefore aim to balance selection, competitive prices, and the latest trends to attract consumers. Unlike their apparel counterparts, footwear retailers most sell popular third-party brands (as opposed to their own exclusive brands), which could mean less exclusivity of product but more nimbleness to pivot to what’s hot.
The 4 footwear retailer stocks we track reported a solid Q2; on average, revenues beat analyst consensus estimates by 3.67% while next quarter's revenue guidance was 2.76% above consensus. There has been a stampede out of expensive technology stocks as higher interest rates encourage investors to value profits over growth, but footwear retailer stocks held their ground better than others, with the share prices up 2.4% on average since the previous earnings results.
Best Q2: Boot Barn (NYSE:BOOT)
With a strong store presence in Texas, California, Florida, and Oklahoma, Boot Barn (NYSE:BOOT) is a western-inspired apparel and footwear retailer.
Boot Barn reported revenues of $383.7 million, up 4.88% year on year, topping analyst expectations by 5.79%. It was a strong quarter for the company, with an impressive beat of analysts' earnings estimates and an impressive beat of analysts' revenue estimates.
Jim Conroy, President and Chief Executive Officer, commented “I am quite pleased with the results of the quarter as we exceeded our quarterly guidance across nearly every measure. Total revenue continued to grow, driven by the performance of new stores. From a same store sales growth perspective, we saw a modest 2.9% decline despite cycling outsized comp sales growth in the first quarter for each of the past two years. Once again, we were able to expand our merchandise margin through a significant increase in the penetration of our margin enhancing exclusive brands which reached 38% of sales for the quarter. Earnings also surpassed our expectations, driven by a steadily improving retail store same store sales trend which turned positive in June and remained positive in July. While uncertainty in the macro environment persists, we are pleased with the positive momentum we have seen in the business.”
Boot Barn scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise of the whole group. The stock is down 15.3% since the results and currently trades at $76.15.Is now the time to buy Boot Barn? Read our full report on Boot Barn here.
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 $523 million, down 2.3% year on year, outperforming analyst expectations by 5.18%. It was a strong quarter for the company, with an impressive beat of analysts' earnings estimates and an impressive beat of analysts' revenue estimates.
The stock is down 2.16% since the results and currently trades at $28.53.
Is now the time to buy Genesco? Access our full analysis of the earnings results here, it's free.
Slowest Q2: 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 $294.6 million, down 5.65% year on year, exceeding analyst expectations by 2.89%. It was a slower quarter for the company, with a miss of analysts' gross margin estimates and a miss of analysts' earnings estimates.
Shoe Carnival had the weakest full-year guidance update in the group. The stock is up 13.9% since the results and currently trades at $24.79.
Designer Brands (NYSE:DBI)
Founded in 1969 as a shoe importer and distributor, Designer Brands (NYSE:DBI) is an American discount retailer focused on footwear and accessories.
Designer Brands reported revenues of $792.2 million, down 7.81% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a miss of analysts' gross margin estimates.
Designer Brands had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 13% since the results and currently trades at $11.7.
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The author has no position in any of the stocks mentioned