Skechers, Columbia, Capri, Tapestry, Deckers – Footwear News
The results of the holiday have arrived – or at least will be next week, when several major fashion and footwear companies are ready to report their income for the winter months.
Companies represent a broad spectrum of the industry – from luxury (Capri and Tapestry) to outdoor (Columbia) to comfort and sport (Deckers and Skechers) – which should give a clearer picture of the state of mind of consumers in recent months, and where the industry is heading towards an uncertain 2021.
Below is an overview of the status of each company as the final quarter approaches.
Capri Holdings Ltd.
Like many fashion suppliers, Capri Holdings Ltd. (CPRI) – the parent company of Michael Kors, Jimmy Choo and Versace – has seen sales slow throughout the pandemic, with shoppers opting for sweatshirts and slippers over heels and dresses. During its fiscal Q2 ended Sept. 26, the company reported a 23% drop in revenue to $ 1.1 billion. Adjusted earnings, meanwhile, were $ 137 million, or 90 cents per diluted share, compared to $ 177 million or $ 1.16 per diluted share the year before.
However, the company managed to beat Wall Street expectations during the quarter. And its e-commerce business saw its revenue increase by 60% in the fall.
Market watchers have been bullish lately about the company’s growth opportunities. BTIG analyst Camilo Lyon picked Capri as one of his top stock picks for 2021, highlighting recent price increases for Kors and Jimmy Choo products and higher margin sales in China.
And from a longer term perspective, he believes Capri will benefit from a post-pandemic recovery. “He is well positioned to take advantage of the expected return in demand for clothing and fashion accessories, ”he wrote in a note to investors in December.
Capri will release its third quarter results on February 3.
After facing an unexpected change in leadership last year, Tapestry Inc. (TPR) announced last fall that interim CEO Joanne Crevoiserat would take the job on a permanent basis, providing more stability to the company. company as she struggles to implement a turnaround plan for her coach, Kate Spade and Marques Stuart Weitzman.
For its most recent quarter ended September 26, the company had mixed results, reporting a 14% drop in revenues to $ 1.17 billion; however, the profits improved. Tapestry reported adjusted earnings per share of 58 cents on profits of $ 161 million, compared to a year earlier of 40 cents on profits of $ 114 million.
Crevoiserat attributed the profit gains, in part, to heavy traffic on its digital channels and growth in China.
For the last holiday season, she said the company would build on its strengths. “We put the consumer first, delivering innovative, relevant and beautifully designed products, while staying true to the unique purpose of each of our brands,” Crevoiserat said on a call with analysts in October.
Tapestry will release its second quarter tax results on February 4.
Columbia Sportswear Co.
While the outdoor market has seen renewed interest from new customers looking to enjoy the benefits of nature, Columbia Sportswear Co. (COLM) was caught off guard last fall by the sluggishness of traffic to its physical stores. The company noted that its outposts in popular travel destinations are “among the most severely affected places.”
As a result, the company has announced that it will permanently close a “small number” of stores, in addition to the eight locations closed earlier in the year – steps that will hopefully stop some of the bleeding in profits.
For the fourth quarter of 2020, the company predicted “continued sequential fundamental improvement,” with sales expected to drop 8% to 11% and earnings between $ 1.07 and $ 1.32 per share. He also predicts a 19% to 20% drop in revenue for the full year and EPS of $ 1.25 to $ 1.50.
Columbia will release its fourth quarter results on February 4.
Deckers Outdoor Corp.
The Deckers Outdoor Corp. brand portfolio. (DECK) has been an industry highlight over the past year – on several fronts. The company’s flagship Ugg label has become a key part of the work-from-home wardrobe, posting a 2.5% gain in sales to $ 415.1 million in the second quarter of the fiscal year ended. September 30.
But consumer attention for the outdoors and fitness also benefited Deckers’ Hoka One One sneaker brand, which generated a whopping 83.2% increase in second-quarter revenue to 143.1. millions of dollars. And sales of sports sandal brand Teva rose 20.5 percent to $ 27.7 million.
Overall, the company posted third-quarter profit of $ 3.58 per share, down from $ 2.71 per share a year earlier and better than analysts’ forecast of $ 2.63 per share per share. action. Revenue also improved 15% to $ 623.5 million, compared to market watchers’ forecast of $ 553.62 million.
The company didn’t provide any guidance for the quarter, but it’s safe to say the holidays still tend to be a banner season for Ugg, whose slippers and boots are often at the top of the item list. -gifts. Indeed, the Lyst Index reported that searches for Ugg footwear increased in the fourth quarter, especially for its Scuff Deco slippers for men and Classic Ulta Mini for women.
Deckers will release its third quarter financial results on February 4.
Skechers USA Inc.
In the third quarter, Skechers USA Inc. (SKX) far exceeded expectations, rebounding in some global markets. Its domestic wholesale business returned to mid single-digit growth, with sales increasing 6.3%, while international markets such as China, Germany and Australia saw double-digit increases. figures.
Other bright spots were e-commerce sales in the United States, which jumped 172.1%. And Skechers casual athletic shoes and sandals saw strong growth, as remote workers turned to comfortable clothing.
Surprisingly, however, as other companies cut back on physical retail, Skechers pushed forward with new openings last year, opening 24 company-owned outposts in the third quarter, including including flagship stores in Paris, London and Tokyo, as well as two stores in Colombia.
Skechers will release its fourth quarter results on February 4.