Bata India, Liberty, Campus slip up to 7%; why footwear stocks are falling?

Shares of footwear makers were under pressure with Bata India, Liberty Shoes, Campus Activewear and Metro Brands down by up to 7 per cent on the BSE in Thursday's intra-day trade. In comparison, the BSE Sensex was up 0.14 per cent at 80,654 at 01:59 PM.

 

In the past week, footwear stocks were down by up to 13 per cent, as against a 0.53 per cent rise in the benchmark index.

Why are footwear stocks under pressure?

Footwear stocks are under pressure as companies reported disappointing earnings for the quarter ended June 2025 (Q1FY26), due to headwinds relating to fluctuating weather patterns and geopolitical uncertainties.

 

 

Bata India hit a 52-week low of ₹1,026.15, falling 7 per cent on the BSE in intra-day trade. In the past three trading days, the stock tanked 13.5 per cent after the company's adjusted profit after tax declined 7 per cent year-on-year (Y-o-Y) at ₹56.5 crore. Gross margins contracted 133 basis points (Bps) Y-o-Y at 53.5 per cent.

 

The management said consumption momentum remained sluggish during Q1FY26 and was also impacted by fluctuating weather patterns and geopolitical uncertainties. However, Bata continued to push ahead with its affordability initiatives across categories to drive volume-led growth.

  

Management is focused on maintaining a balance between managing near-term challenges and investing in long-term growth drivers. It remains optimistic about consumption recovery in 2HFY26, backed by Bata's strong market positioning and wide network, while remaining focused on cost efficiencies.  Track LIVE Stock Market Updates Here

 

Campus' Q1FY26 sales were hurt due to the consolidation of the warehouse, which disrupted the supply of inventory for nearly three weeks (online sales down 8 per cent Y-o-Y), while distribution remained strong. Despite this, management reaffirmed double-digit FY26 growth guidance, citing a strong recovery in July, solid distributor orders, and sneaker-led premiumisation.

 

June quarter marked a weak start to FY26, but Motilal Oswal Financial Services expects Campus to deliver double-digit growth over the medium term with an improvement in consumer sentiment and gradual overall demand revival. 

 

Metro Brands witnessed its third consecutive quarter of high single-digit/double-digit growth. However, the growth is lower than the long-term to mid-term revenue guidance of 15-18 per cent, which management attributes to lumpiness in business due to Covid. 

 

The management aims to drive topline growth on the back of healthy SSSG (mid to high single digit), store additions and the addition of new formats. Positively, the company has picked up store additions for Walkway (huge opportunity in value footwear), Footlocker & Fila (supply chain disruptions with BIS implementation are waning), as well as introduced a new format – Clarks. Therefore, the company, along with core brands (Metro+Mochi+Crocs), has a healthy portfolio of formats, said Centrum Broking in a result update.

 

While external factors such as the preponement of Eid to March, an early onset of monsoons, and ongoing global geopolitical tensions posed minor challenges, Metro Brands management said they remained focused on delivering a seamless customer experience both online and offline.