Footwear Stocks Earnings this Week: AEO, BKE, BOOT, BURBY
While the first quarter earnings season is almost over for the other sectors, there are still a few companies in the retail sector that are yet to report. As a result, investors are on the lookout for companies in the retail sector that can beat their respective earnings estimates.
While a significant number of companies in the retail sector have come out with positive surprises, in terms of both earnings and revenues, a few companies in the departmental store space and apparel category have posted disappointing results due to macroeconomic issues and declining demand as a result of shifting consumer preferences.
If we summarize the performance of nearly 55.8% S&P 500 members that have reported financial results from the Retail sector so far, we will see that 75% beat on earnings and 50% surpassed revenue estimates, as per our Earnings Preview report. Additionally, the blended beat, which is the percentage of companies beating both earnings per share and revenue estimates, is 45.8% for the sector. Total earnings for these companies were up 3.2% year over year while revenues grew 9.7%.
Footwear stocks had a good start to 2016. Carter's, Inc. CRI that reported on Apr 28, posted better-than-expected results for both earnings and revenues. Among the few that reported on Apr 22, the designer of branded and lifestyle shoes – Skechers USA Inc. SKX – beat the Zacks Consensus Estimate for both earnings and revenues despite rising currency headwinds and other global pressures. Another footwear company Steven Madden, Ltd. SHOO posted in-line earnings and beat the Zacks Consensus Estimate for revenue.
Another licensing company Iconix Brand Group, Inc. ICON posted in-line revenues and beat the Zacks Consensus Estimate for earnings in the first quarter. Shoe company Sequential Brands Group, Inc. SQBG beat the Zacks Consensus Estimate for both earnings and revenues. Both the companies reported on May 5.
The growing demand for brands as well as greater sales internationally has boosted profits at most of these shoe companies, despite issues like rising competition and changing consumer preferences.
However, some other apparel/footwear stocks including Fossil Group, Inc. FOSL and Nordstrom Inc. JWN that reported last week, continued their dismal run and reported weaker-than-expected quarterly results. Both top and bottom lines lagged estimates. In fact, both the companies slashed their projections for fiscal 2016.
Here we have four footwear/apparel stocks, which are scheduled to release their first-quarter numbers this week.Let's see how things are shaping up for this announcement.
American Eagle Outfitters, Inc. AEO, a retailer of apparel and accessories, is scheduled to report first-quarter fiscal 2016 on May 18. It has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for first quarter earnings is pegged at 18 cents. Additionally, the company has delivered an average positive earnings surprise of 15.8% in the trailing four quarters.
While the company’s attempt to grow globally is likely to help it in augmenting business and meeting global demand, it will also expose it to adverse currency movements and other international risks. (Read: American Eagle: Will it Disappoint in Q1 Earnings?).
The Buckle, Inc. BKE is slated to release first-quarter fiscal 2016 results on May 20. It has an ESP of 0.00% and a Zacks Rank #4. The Zacks Consensus Estimate for first quarter earnings is pegged at 55 cents. This retailer of casual apparel, footwear and accessories has missed the Zacks Consensus Estimate by an average of 0.22% in the trailing four quarters. (Read: Buckle Q1 Earnings: What's in Store for the Stock?).
Boot Barn Holdings, Inc. BOOT, a lifestyle retail company, will report its fourth quarter fiscal 2016 on May 18. It has an ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at 12 cents. Additionally, the company delivered an average positive earnings surprise of 8.26% in the trailing four quarters.
UK-based maker of luxury clothing and non-apparel accessories, Burberry Group plc BURBY, holding a Zacks Rank #5 (Strong Sell) and an ESP of 0.00%, is scheduled to report its earnings on May 19.
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FOSSIL GRP INC (FOSL): Free Stock Analysis Report
AMER EAGLE OUTF (AEO): Free Stock Analysis Report
NORDSTROM INC (JWN): Free Stock Analysis Report
BUCKLE INC (BKE): Free Stock Analysis Report
BURBERRY GP PLC (BURBY): Free Stock Analysis Report
CARTERS INC (CRI): Free Stock Analysis Report
SKECHERS USA-A (SKX): Free Stock Analysis Report
BOOT BARN HLDGS (BOOT): Free Stock Analysis Report
ICONIX BRAND GP (ICON): Free Stock Analysis Report
STEVEN MADDEN (SHOO): Free Stock Analysis Report
SEQUENTIAL BRND (SQBG): Free Stock Analysis Report
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