By now, many of footwear’s power players have released their key figures for the second quarter, and it’s no surprise that a slew of Q1’s winners brought their soaring profits and revenues with them into Q2.
Skechers U.S.A Inc., Under Armour Inc., Nike Inc. (which actually reported Q1) and Foot Locker Inc. remained standouts in the recent quarter. Meanwhile. Caleres and DSW Inc. decelerated slightly, missing analysts’ forecasts and disappointing some investors.
Under Armour also reported double-digit revenue growth of 29 percent, bolstered by a 40 percent year-over-year jump in footwear. An increase in selling and general and administrative (SG&A) expenses, however, drove down the firm’s profits, by 17 percent, in the quarter.
Nike — with 14 percent currency-neutral sales growth to $8.4 billion — and Foot Locker, with a 29 percent rise in net income and 10 percent comp growth — buoyed analysts looking ahead to the second half.
A few companies also showed significant turnaround potential in the recent quarter. After an earnings miss in Q1, Nashville, Tenn.-based Genesco Inc. surprised Wall Street with a sizeable Q2 comeback.
Despite macro headwinds, Genesco pulled off a 7 percent comparable-sales gain in the second quarter, with a 4 percent increase at Journeys and an 8 percent rise at previously faltering Lids Sports Group. Net earnings also rose substantially, by 60 percent, to $7.5 million.
Steve Madden Ltd. continued to garner attention for driving renewed interest in the fashion-footwear space — posting a modest Q2 Wall Street beat driven by better-than-expected retail sales and improved gross margins. It’s net income however, was down year-over-year and sales in the company’s wholesale footwear business — excluding acquisitions — were also down.
Market watchers have also been markedly more upbeat about Dick’s Sporting Goods in recent months. The Pittsburgh-based firm saw double-digit gains in net income and an 8 percent jump in revenues in the second quarter, due mostly to its omnichannel efforts, the company said.
In the department-store arena, Nordstrom Inc. continued to outpace its competitors in a tough macro environment for large retail stores.
The firm’s Q2 EPS (diluted) of $1.09 was a solid beat on market watchers’ bets, while comps rose by 5 percent year-on-year. Profits also accelerated 15 percent, to $211 million, in the quarter — though revenues, which rose 9 percent year-over-year, to $3.6 billion, fell slightly short of expectations.