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Spotting Winners: Boot Barn (NYSE:BOOT) And Footwear Retailer Stocks In Q1

BOOT Cover Image
Spotting Winners: Boot Barn (NYSE:BOOT) And Footwear Retailer Stocks In Q1

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 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 3% 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.

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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.

Jim Conroy, president and chief executive officer, commented, “I am pleased with our fourth quarter performance and proud of the efforts of the entire Boot Barn team. We crossed the 400-store milestone prior to year-end and extended the Boot Barn brand to 45 states across the country. In the year, revenue showed modest growth despite experiencing a mid-single digit decline in consolidated same store sales and cycling a 53-week fiscal year. We also grew exclusive brand penetration by 370 basis points which contributed to merchandise margin expansion.

Boot Barn Total Revenue
Boot Barn Total Revenue

Boot Barn delivered the slowest revenue growth of the whole group. The stock is up 19.4% since the results and currently trades at $127.7.

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

Best Q1: 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, outperforming analysts' expectations by 2%. 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 Total Revenue
Shoe Carnival Total Revenue

Shoe Carnival achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 6.4% since the results and currently trades at $36.61.

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

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. It was a slower quarter for the company, with a miss of analysts' earnings estimates and underwhelming earnings guidance for the full year.

The stock is down 28.5% since the results and currently trades at $7.9.

Read our full analysis of Designer Brands's results here.

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, falling short of analysts' expectations by 0.2%. 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.

Foot Locker had the weakest performance against analyst estimates among its peers. The stock is up 14.8% since the results and currently trades at $25.86.

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

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