Investing in some of the best shoe manufacturing stocks can be a lucrative way to build wealth and secure your financial future.
Want to know why and which ones are the best? We explore some of them below.
Best Shoe Manufacturing Stocks to Watch
NIKE, Inc. (NYSE: NKE)
We can’t talk about shoe stocks without mentioning the multinational corporation Nike.
Nike is one of the biggest in the footwear industry, with about 600 factories exclusively making its shoes.
It is well known for its various lines of athletic footwear and apparel. Nike also designs, manufactures, and distributes performance equipment and accessories.
The company was formerly Blue Ribbon Sports Inc. but changed its name to Nike, Inc. in 1971.
In recent years, Nike has seen a steady increase in its revenue. It amassed $46.71 billion in total revenue in the past year and is estimated to make $50.93 billion in 2023.
Dividends are offered to investors by the company. It records a dividend yield of 1.10%. Also, the company provides an annual payout of $1.36 on a payout ratio of 36.17%.
Crocs, Inc. (NASDAQ: CROX)
Crocs and its subsidiaries create, design, manufacture, and distribute casual lifestyle footwear and accessories.
The company became increasingly popular during and after the Covid-19 pandemic due to the comfort of its products.
Crocs operates through wholesalers, retail stores like foot locker, e-commerce sites, and third-party marketplaces in approximately 85 countries, with headquarters in Broomfield, Colorado.
In its last fiscal year, Crocs beat experts’ estimated earnings per share by $0.41, ending with a total EPS of $10.92.
The company has a year-over-year revenue growth of 53.67% and an EBITDA of $937.33 million. Crocs does not currently pay a dividend.
Capri Holdings Ltd (NYSE: CPRI)
Capri Holdings Ltd may not be a popular household name, but you’re probably familiar with its subsidiaries, Versace, Jimmy Choo, and Michael Kors.
The company produces various male and female clothes, accessories, and footwear, retailed and distributed internationally.
Although Capri Holdings made a $1.59 billion increase in its past year’s annual revenue, the company failed to meet earning expectations and has cut down its revenue predictions for 2023.
This is mainly due to customers curbing spending on luxury wear as a result of increased prices.
Brands like Michael Kors are expected to take a larger hit since their customer base comprises young and less wealthy customers.
As of April, Capri Holdings Ltd is trading at $43 with a 5.53 billion market cap.
Deckers Outdoor Corporation (NYSE: DECK)
Deckers Outdoor Corporation is a footwear designer that designs, produces, markets, and distributes footwear, apparel, and accessories through its subsidiaries.
Some of its brands include UGG, Hoka, Teva, and Sanuk. As of 2022, the corporation had 149 retail stores and sold its products in more than 50 countries.
Deckers Outdoor has most of its independent manufacturers in Asia, as it outsources some of its production.
The company has recorded a steady rise in its revenue. In the past year, Deckers Outdoor revealed a total revenue of $3.15 billion, which experts expect to rise in 2023 to $3.55 billion.
Deckers has a growth in revenue year-over-year of $20.04% and a gross profit margin of 50.06%.
Caleres, Inc. (NYSE: CAL)
Caleres is a leading global footwear company that owns and operates in the footwear industry.
The company manufactures and markets its footwear to a series of retailers. Some of its brands include Dr. Scholl’s shoes, Blowfish Malibu, LifeStride, Naturalizer, and others.
It changed its name in 2015 from Brown Shoe Company, Inc. to Caleres and has operated since 1878.
In its 2023 financial report, Caleres announced its total revenue at the end of the fiscal year as $2.97 billion.
One of the few stocks on our list offering investors dividends, this footwear company has maintained an 11-year streak of increased dividends.
Caleres boasts a dividend yield of 1.27% with an annual payout of $0.28 and a market cap of $773.19 million.
Under Armour, Inc. (NYSE: UAA)
Under Armour, Inc., with its subsidiaries, is an athletic footwear and apparel designer, manufacturer, and distributor worldwide.
The company was founded in 1996 and is one of the biggest athletics companies in the world.
It offers its products through its various brands and sells them through wholesale channels, retail channels, and independent distributors.
Under Armour made $5.20 billion in revenue at the end of the 2022 fiscal year and estimates $1.58 billion for the 2023 third quarter.
The company has a market cap of $3.83 billion and a gross profit margin of 42.22%. It currently does not offer investors dividends.
Designer Brands, Inc. (NYSE: DBI)
Designer Brands, Inc., together with its subsidiaries, is one of North America’s most prominent designers and manufacturers of footwear.
The company offers brand names, designer apparel, casual and athletic footwear, and accessories.
DBI operates in more than 500 stores in 44 states in the United States, with several retail concepts in Canada.
The company functions through the Vince Camuto brand and has the footwear licenses of Lucky Brand and Jessica Simpson.
At the end of the 2023 fiscal year, the company accrued $3.32 billion as its total annual revenue.
Shareholders stand a chance to earn passive income with DBI’s quarterly dividends.
Designer Brands Inc records a dividend yield of 2.89% and an annual payout of $0.25 on a payout ratio of 10.87%.
Wolverine World Wide, Inc. (NYSE: WWW)
Founded in 1883, Wolverine World Wide, Inc. is a shoe manufacturing company that designs, produces, markets, and distributes its footwear and apparel products worldwide.
It operates through Bates, Chaco, HYTEST, Harley-Davidson footwear, and eight other brands and licenses under the Stride Rite brand.
The company has its headquarters in Rockford, Michigan. Leading retailers in the United States. and internationally carry Wolverine World Wide products in about 170 countries.
WWW has a market cap of $1.32 billion and a gross profit margin of 39.87%.
The company revealed that at the end of the 2022 fiscal year, it had a total revenue of $2.68 billion. Analysts expect its total revenue to drop in 2023 and 2024 to $2.55 billion and $2.64 billion, respectively.
With a 10-year streak of consecutive dividend growth, shareholders can earn dividends from this stock. WWW records a strong dividend yield of 2.41% with an annual payout of $0.40.
Rocky Brands, Inc. (NASDAQ: RCKY)
Rocky Brands Inc. is a designer, manufacturer, and marketer of good-quality shoes and apparel.
The Ohio-based company offers its products in approximately 10,000 retail locations. It also provides contract manufacturing to private label sales and sales to the military.
Founded in 1932, the company operates through various brands, including Rocky Boots, Durango, Georgia Boot, Xtratuf, and Ranger.
Rocky Brands Inc. has a market cap of $183.73 million. The company has a debt of $268.18 million; despite this, it still maintains an enterprise value of $446.19 million.
The company concluded the 2022 fiscal year and saw a 19.7% increase in net sales to $615.5 million.
RCKY also pays out dividends to investors with a healthy dividend yield of 2.48% and an annual payout of $0.62.
Are Shoe Manufacturing Stocks a Good Investment?
Shoe manufacturing is an investment with potential for growth and profitability, particularly as the demand for footwear continues to rise globally.
The rise of streetwear culture has amplified demand for limited edition and designer sneakers, further fueling the potential of footwear stocks.
So much so that the global footwear market is expected to hit $530 Billion by 2028, representing a 33% increase from its current market size.
In other words, we’re set to witness a major uptick in the shoe manufacturing industry, which could trigger huge profits among select stocks.
Innovations in materials, design, and manufacturing processes present opportunities for new players to enter the market and differentiate themselves from the legacy participants
That said, investors should also consider the challenges associated with the shoe manufacturing industry, such as supply chain complexities and the need for constant innovation to stay ahead of trends.
The growing awareness of social and environmental issues related to shoe production has led consumers to demand greater brand transparency and responsible practices.
Investing in shoe manufacturing companies prioritizing sustainability, ethical production, and unique selling propositions catering to diverse consumer preferences makes sense.
That’s because these companies are better suited to attract institutional and retail buying pressure, which drives stock prices up.
All-in-all, it’s fair to say that shoe manufacturing stocks are worth buying, but as with any investment, its important to manage your risk appropriately to avoid unnecessary losses.
How Can I Minimize Risks When Investing?
Diversifying your portfolio is a smart risk management move that mitigates the risk of investing. Using this provides investors control over how much they stand to lose if they lose.
How Does Consumer Preferences And Fashion Trends Affect shoe stocks?
Companies that can quickly adapt to changing tastes and demands are more likely to maintain or grow their market share and remain competitive.
Rapid shifts in trends can lead to increased demand for specific styles or materials, creating opportunities for manufacturers to capitalize on these trends.