Q4 Earnings Highs And Lows: Boot Barn (NYSE:BOOT) Vs The Rest Of The Footwear Retailer Stocks

Kayode Omotosho /
2024/04/11 5:02 am EDT

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Boot Barn (NYSE:BOOT) and the best and worst performers in the footwear retailer industry.

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. Therefore, they 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 slower Q4; on average, revenues beat analyst consensus estimates by 1%. while next quarter's revenue guidance was 4.9% below consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, though the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the footwear retailer stocks have fared somewhat better than others, they collectively declined, with share prices falling 5% on average since the previous earnings results.

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 $520.4 million, up 1.1% year on year, falling short of analyst expectations by 1.5%. It was a weak quarter for the company, with underwhelming earnings guidance for the next quarter.

Jim Conroy, President and Chief Executive Officer, commented “I am pleased with our third quarter performance. We added 11 new stores and were able to maintain our consistent track record of delivering growth. Excluding three quarters in calendar 2020 that were impacted by the pandemic, the third quarter marks our 38th consecutive quarter of year-over-year sales growth since our IPO in 2014, nearly ten years ago. Our top line was driven by the sales from the 49 new stores opened over the past 12 months, which more than offset a 9.7% decline in same store sales. We also grew earnings compared to last year through a combination of sales growth, disciplined expense control and an increase in merchandise margin, which benefited from improved freight. These results underscore the strength of the Boot Barn business model and are a testament to solid execution across the organization.”

Boot Barn Total Revenue

Boot Barn delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. The stock is up 37.7% since the results and currently trades at $98.76.

Read our full report on Boot Barn here, it's free.

Best Q4: Foot Locker (NYSE:FL)

Known for store associates whose uniforms resemble those of referees, Foot Locker (NYSE:FL) is a specialty retailer that sells athletic footwear, clothing, and accessories.

Foot Locker reported revenues of $2.38 billion, up 2% year on year, outperforming analyst expectations by 4.6%. It was a decent quarter for the company, with an impressive beat of analysts' revenue and EPS estimates but underwhelming earnings guidance for the full year.

Foot Locker Total Revenue

Foot Locker delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 33.7% since the results and currently trades at $22.73.

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

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 $280.2 million, down 3.6% year on year, inline with analyst expectations. It was a weaker quarter for the company, with underwhelming earnings guidance for the full year and a miss of analysts' gross margin estimates.

Shoe Carnival achieved the highest full-year guidance raise but had the slowest revenue growth in the group. The stock is up 1.6% since the results and currently trades at $33.49.

Read our full analysis of Shoe Carnival's results here.

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 $754.3 million, down 0.8% year on year, in line with analyst expectations. It was a weaker quarter for the company, with underwhelming earnings guidance for the full year and a miss of analysts' earnings estimates.

The stock is down 25.5% since the results and currently trades at $8.59.

Read our full, actionable report on Designer Brands here, it's free.

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