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Unpacking Q1 Earnings: Wolverine Worldwide (NYSE:WWW) In The Context Of Other Footwear Stocks


Radek Strnad /
2024/06/07 3:17 am EDT

As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at footwear stocks, starting with Wolverine Worldwide (NYSE:WWW).

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 8 footwear stocks we track reported a strong Q1; on average, revenues beat analyst consensus estimates by 4.1%. while next quarter's revenue guidance was in line with consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, but footwear stocks have shown resilience, with share prices up 8.6% on average since the previous earnings results.

Slowest Q1: 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 $390.8 million, down 24.5% year on year, topping analysts' expectations by 8.1%. It was a decent quarter for the company, with an impressive beat of analysts' earnings estimates.

“We delivered better-than-expected revenue and earnings in the first quarter, and we are beginning to see proof points emerge as early validation of our strategy and execution – including record gross margin in the quarter, acceleration in our direct-to-consumer business, improving order trends across our wholesale operations, and a healthier balance sheet,” said Chris Hufnagel, President and Chief Executive Officer of Wolverine Worldwide.

Wolverine Worldwide Total Revenue

Wolverine Worldwide scored the biggest analyst estimates beat but had the slowest revenue growth and slowest revenue growth of the whole group. The stock is up 14.9% since the results and currently trades at $13.12.

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

Best Q1: 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 $959.8 million, up 21.2% year on year, outperforming analysts' expectations by 8%. It was a very strong quarter for the company, with an impressive beat of analysts' constant currency revenue and earnings estimates.

Deckers Total Revenue

Deckers pulled off the fastest revenue growth among its peers. The stock is up 17.6% since the results and currently trades at $1,064.

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

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 $457.6 million, down 5.3% year on year, exceeding analysts' expectations by 2.7%. It was an impressive quarter for the company, with optimistic earnings guidance for the full year and a solid beat of analysts' earnings estimates.

The stock is up 0.7% since the results and currently trades at $27.5.

Read our full analysis of Genesco's results here.

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 $12.43 billion, flat year on year, surpassing analysts' expectations by 1.1%. It was an ok quarter for the company, with a narrow beat of analysts' revenue estimates. EPS beat by a more convincing margin.

The stock is down 5.1% since the results and currently trades at $95.65.

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

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 $659.2 million, down 0.5% year on year, falling short of analysts' expectations by 0.8%. It was a solid quarter for the company, with optimistic earnings guidance for the next quarter.

Caleres had the weakest performance against analyst estimates among its peers. The stock is down 9.7% since the results and currently trades at $33.1.

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

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