Yahoo Finance Spotting Winners: Designer Brands (NYSE:DBI) And Footwear Retailer Stocks In Q1
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 retailer stocks, starting with Designer Brands (NYSE:DBI).
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 decent Q1; on average, revenues beat analyst consensus estimates by 0.8%. while next quarter's revenue guidance was 1% above 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, and footwear retailer stocks have held roughly steady amidst all this, with share prices up 2.4% on average since the previous earnings results.
Weakest Q1: 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 $746.6 million, flat year on year, in line with analysts' expectations. Overall, it was a slower quarter for the company with a miss of analysts' earnings estimates and underwhelming earnings guidance for the full year.
"This quarter, we were pleased to deliver results in line with our expectations for this quarter, as we gain traction on our path to returning Designer Brands to growth," stated Doug Howe, Chief Executive Officer.
The stock is down 34.3% since reporting and currently trades at $7.26.
Read our full report on Designer Brands here, it's free.
Best Q1: 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 $1.88 billion, down 2.7% year on year, in line with analysts' expectations. It was a very strong quarter for the company with an impressive beat of analysts' earnings estimates and optimistic earnings guidance for the full year.
The market seems happy with the results as the stock is up 13.2% since reporting. It currently trades at $25.50.
Is now the time to buy Foot Locker? Access our full analysis of the earnings results here, it's free.
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 $388.5 million, down 8.7% year on year, in line with analysts' expectations. It was a mixed quarter for the company with a decent beat of analysts' gross margin estimates but underwhelming earnings guidance for the next quarter.
Boot Barn posted the slowest revenue growth in the group. Interestingly, the stock is up 14.7% since the results and currently trades at $122.73.
Read our full analysis of Boot Barn's results here.
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 $300.4 million, up 6.8% year on year, surpassing analysts' expectations by 2%. Zooming out, it was a solid quarter for the company with a decent beat of analysts' earnings estimates and a narrow beat of analysts' gross margin estimates .
Shoe Carnival pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 16% since reporting and currently trades at $39.90.
Read our full, actionable report on Shoe Carnival here, it's free.
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