Crocs (CROX) reported earnings early Thursday as footwear companies roll out quarterly results. Hoka shoes maker Deckers Brands (DECK) and Skechers (SKX) are on tap to report late Thursday. CROX stock fell early Thursday while DECK stock is trading near all-time highs before its Q1 report. SKX stock is trading below a buy zone ahead of earnings.
Footwear stocks got off to a running start in 2023, but have since slowed their pace due to softer outlooks. Analysts expectations point to a mixed bag for upcoming reports.
Crocs reported adjusted earnings rose 10.8% to $3.59 per share on 11.2% revenue growth to a record $1.07 billion. Analysts expected the clog maker’s earnings to fall 9% to $2.95 per share while sales increased 8% to a record $1.04 billion.
FactSet analysts lowered their expectations from $3.27 per share after Crocs updated its outlook in its Q1 earnings beat from late April.
Crocs Brand sales surged 13.8% to $833 million, driven by a 33.2% increase in revenue from Asia. Hey Dude direct-to-consumer revenue grew 29.7% while digital revenue increased 36.7% compared to last year.
For the third quarter, Crocs sees revenue rising 3% to 5% from Q2 to range from $1.013 billion to $1.034 billion. The company expects adjusted earnings between $3.07 and $3.15 per share.
Crocs guided fiscal 2023 revenue between $4 billion and $4.065 billion, which would represent 12.5% to 14.5% growth compared to 2022. The company expects adjusted earnings range from $11.83 to $12.22 per share.
FactSet analysts forecast Crocs posts earnings of $3.14 per share on $1.06 billion in revenue for the third quarter. Fiscal 2023 earnings are seen climbing 5.8% to $11.56 per share on 13.1% sales growth to $4.02 billion.
CROX stock is struggling up the right side of a base ahead of earnings. The base has a 151.32 buy point, but investors could find an earlier trendline entry around 129.
CROX stock fell 10% Thursday following results. Shares slid 1.7% to 119.80 Wednesday.
Crocs has a 97 Composite Rating out of a best-possible 99. The Composite Rating combines various indicators into one easy-to-read score. CROX stock has a near-perfect 98 EPS Rating. Crocs’ relative strength line is off its highs from April and it has an 88 RS Rating.
Goleta, Calif.-based Deckers Brands produces a variety of lifestyle, running and comfort shoes. Its portfolio includes the Ugg, Teva and Sanuk brands as well as the increasingly popular Hoka running shoes.
Deckers’ earnings growth accelerated the last three quarters and analysts expect a 28% jump to $2.13 per share for Q2. Wall Street expects sales growth to slow for the fifth consecutive quarter, increasing 7% to $661 million.
DECK stock hit an all-time high of 562.97 on July 12 as shares bolted 38% higher year to date. Shares edged slightly lower early Thursday ahead of earnings.
Deckers has a 97 Composite Rating and a 98 EPS Rating. DECK stock’s relative strength line is shy of May highs and it has a 94 RS Rating.
Skechers is coming off a better-than-expected Q1 performance as it works to pull customers from competitors. Adjusted earnings leapt nearly 25% after three consecutive declines. However, sales growth has slowed the past two quarters.
For Q2 results, FactSet forecasts an 8.6% earnings drop to 53 cents per share while revenue swings 2.4% higher to $1.91 billion.
Skechers stock briefly cleared a 54.77 flat base buy point on July 18 but retreated about 4% in the week since. Shares are close to reclaiming their 10-day moving average and trading above their other technical lines.
However, a negative earnings surprise could cause SKX stock to retreat and trigger the 7% to 8% sell rule.
SKX stock ticked down Thursday morning and rose to 1.2% to 52.79 Wednesday.
You can follow Harrison Miller for more stock news and updates on Twitter @IBD_Harrison
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