It has been an interesting year for sneaker stocks, and as we near the end of a busy earnings season, the current state of the athletic shoe battle is fascinating. Throughout 2015, we’ve seen some incredible breakouts in this industry, but the tried-and-true favorites may finally be back in the front of the pack.
The Year’s Surprises
One of the breakout sneaker stocks this year was Under Armour (UA – Analyst Report). Under Armour, originally known for its spandex-like athletic wear, has invested heavily in its sneaker division recently. The company cashed in on its basketball endorsements, as the UA-sponsored Steph Curry took home the NBA title and MVP award last season.
Under Armour’s recent success is not isolated to just its basketball division. Overall footwear revenue, which includes basketball, running, and training shoes, soared 61.4% in the most recent quarter. The company’s Connected Fitness segment reported year-over-year growth of 221%. The company also beat the Zacks Consensus Estimate by a penny in its most recent earnings report. Shares of UA have gained about 40% on the year. Currently, UA has a Zacks Rank #3 (Hold).
(Also read: Under Armour Q3 Earnings Beat Estimates, Raises Outlook)
Another one of the major breakout stocks this year was Skechers (SKX – Analyst Report). Most known for its “Shape Up” line of fitness shoes, Skechers was able to outperform the major sneaker players for most of 2015. At one point in August, shares of SKX were up nearly 200% on the year.
The dream run for Skechers was propelled by the company’s commitment to product innovation, adding more Skechers-branded stores, and increasing product channels. Before last week’s earnings report, the company had posted seven consecutive revenue beats and outperformed the Zacks Consensus Estimate by an average of 20.2% over the trailing four quarters.
However, SKX came crashing down after its latest earnings announcement. Despite beating earnings expectations again and posting the highest quarterly sales in company history, the stock plummeted 29.3% after missing revenue estimates and surprising investors. Despite this, the stock is still up over 70% on the year and currently has a Zacks Rank #3 (Hold).
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