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Steven Madden (SHOO) Q2 Earnings & Revenues Beat Estimates
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Steven Madden, Ltd. (SHOO - Free Report) reported better-than-expected results in second-quarter 2024, with the top and bottom lines surpassing the Zacks Consensus Estimate. Also, revenues and earnings increased year over year.
This performance was fueled by outstanding growth in the accessories and apparel categories, as well as strong gains in the international markets and direct-to-consumer channels, showcasing the effective execution of key strategic initiatives. Although the near-term operating environment is volatile, the company’s core strengths — brands, business model and people — are expected to drive sustainable revenue and earnings growth over the long term.
Over the past three months, shares of this company have gained 9.4% against the industry’s 14.6% drop.
Steven Madden, Ltd. Price, Consensus and EPS Surprise
Steven Madden posted adjusted quarterly earnings of 57 cents a share, which beat the Zacks Consensus Estimate of 51 cents. The same increased 21.3% from 47 cents in the prior-year period.
Total revenues rose 17.6% year over year to $523.6 million. Net revenues of $521.7 million went up 17.8%, and commission and licensing fee income of $1.8 million decreased 25.2% from the year-ago period. The top line beat the consensus estimate of $507 million.
Adjusted gross profit rose 14.4% year over year to $217.3 million. We note that the adjusted gross margin contracted 110 basis points (bps) to 41.5%.
Gross profit, as a percentage of wholesale revenues, decreased 50 bps year over year to 33.1% due to the effects of Almost Famous. However, gross profit, as a percentage of direct-to-consumer revenues, increased 60 bps to 64.3% due to reduced promotional activity.
This Zacks Rank #3 (Hold) company’s adjusted operating expenses increased 12% year over year to $162.8 million. However, as a percentage of revenues, adjusted operating expenses declined 150 bps year over year to 31.1%.
Steven Madden reported an adjusted operating income of $54.5 million, up 22.4% from the same quarter a year ago. The adjusted operating margin increased 40 bps to 10.4%.
Image Source: Zacks Investment Research
Segmental Performance
Revenues for the Wholesale business improved 22.5% year over year to $385.3 million. We note that Wholesale footwear revenues increased 0.9% year over year, whereas Wholesale accessories/apparel revenues grew 86%. Excluding the recent acquisition of Almost Famous, wholesale revenues rose 8.2% year over year, and wholesale accessories and apparel revenues grew 29.8%. Our model suggested total Wholesale revenues of $364.9 million for the second quarter, indicating 16% year-over-year growth.
DTC revenues increased 6.4% year over year to $136.4 million in the second quarter. Our model suggested total DTC revenues of $138.6 million for the second quarter, implying 8.1% year-over-year growth.
SHOO ended the second quarter with 273 brick-and-mortar retail outlets, five e-commerce websites and 27 company-operated concessions across the international markets.
Other Financial Aspects
Steven Madden ended the second quarter with cash and cash equivalents of $180.5 million, short-term investments of $11.8 million, and stockholders’ equity of $808.3 million, excluding non-controlling interest of $24.1 million.
In the reported quarter, SHOO repurchased $38.2 million of its common stock, including shares acquired via the net settlement of employees’ stock awards. Moreover, management approved a quarterly cash dividend of 21 cents per share, payable Sep 23, 2024, to stockholders of record as of Sep 13.
Outlook
For 2024, the company anticipates an 11-13% increase in revenues from that reported in 2023, with adjusted earnings of $2.55-$2.65 per share. Notably, the company reported earnings of $2.30 per share in 2023.
Eye These Solid Picks
Some better-ranked stocks in the retail space are The Gap, Inc. (GPS - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) and Urban Outfitters Inc. (URBN - Free Report) .
Gap is a premier international specialty retailer, which offers a diverse range of clothing, accessories and personal care products. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Gap’s fiscal 2024 earnings and sales indicates growth of 22.4% and 0.2%, respectively, from fiscal 2023 reported figures. GPS has a trailing four-quarter average earnings surprise of 202.7%.
Abercrombie is a specialty retailer of premium, high-quality casual apparel. It flaunts a Zacks Rank of 1 at present. ANF delivered a 28.9% earnings surprise in the last reported quarter.
The consensus estimate for Abercrombie’s fiscal 2024 earnings and sales indicates growth of 48.9% and 11.1%, respectively, from the fiscal 2023 reported levels. ANF has a trailing four-quarter average earnings surprise of 210.3%.
Urban Outfitters is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home décor, and gift products. It currently has a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Urban Outfitters’ fiscal 2024 earnings and sales indicates growth of 9.9% and 5.8%, respectively, from the year-ago actuals. URBN has a trailing four-quarter average earnings surprise of 16.9%.
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Steven Madden (SHOO) Q2 Earnings & Revenues Beat Estimates
Steven Madden, Ltd. (SHOO - Free Report) reported better-than-expected results in second-quarter 2024, with the top and bottom lines surpassing the Zacks Consensus Estimate. Also, revenues and earnings increased year over year.
This performance was fueled by outstanding growth in the accessories and apparel categories, as well as strong gains in the international markets and direct-to-consumer channels, showcasing the effective execution of key strategic initiatives. Although the near-term operating environment is volatile, the company’s core strengths — brands, business model and people — are expected to drive sustainable revenue and earnings growth over the long term.
Over the past three months, shares of this company have gained 9.4% against the industry’s 14.6% drop.
Steven Madden, Ltd. Price, Consensus and EPS Surprise
Steven Madden, Ltd. price-consensus-eps-surprise-chart | Steven Madden, Ltd. Quote
Q2 Highlights
Steven Madden posted adjusted quarterly earnings of 57 cents a share, which beat the Zacks Consensus Estimate of 51 cents. The same increased 21.3% from 47 cents in the prior-year period.
Total revenues rose 17.6% year over year to $523.6 million. Net revenues of $521.7 million went up 17.8%, and commission and licensing fee income of $1.8 million decreased 25.2% from the year-ago period. The top line beat the consensus estimate of $507 million.
Adjusted gross profit rose 14.4% year over year to $217.3 million. We note that the adjusted gross margin contracted 110 basis points (bps) to 41.5%.
Gross profit, as a percentage of wholesale revenues, decreased 50 bps year over year to 33.1% due to the effects of Almost Famous. However, gross profit, as a percentage of direct-to-consumer revenues, increased 60 bps to 64.3% due to reduced promotional activity.
This Zacks Rank #3 (Hold) company’s adjusted operating expenses increased 12% year over year to $162.8 million. However, as a percentage of revenues, adjusted operating expenses declined 150 bps year over year to 31.1%.
Steven Madden reported an adjusted operating income of $54.5 million, up 22.4% from the same quarter a year ago. The adjusted operating margin increased 40 bps to 10.4%.
Image Source: Zacks Investment Research
Segmental Performance
Revenues for the Wholesale business improved 22.5% year over year to $385.3 million. We note that Wholesale footwear revenues increased 0.9% year over year, whereas Wholesale accessories/apparel revenues grew 86%. Excluding the recent acquisition of Almost Famous, wholesale revenues rose 8.2% year over year, and wholesale accessories and apparel revenues grew 29.8%. Our model suggested total Wholesale revenues of $364.9 million for the second quarter, indicating 16% year-over-year growth.
DTC revenues increased 6.4% year over year to $136.4 million in the second quarter. Our model suggested total DTC revenues of $138.6 million for the second quarter, implying 8.1% year-over-year growth.
SHOO ended the second quarter with 273 brick-and-mortar retail outlets, five e-commerce websites and 27 company-operated concessions across the international markets.
Other Financial Aspects
Steven Madden ended the second quarter with cash and cash equivalents of $180.5 million, short-term investments of $11.8 million, and stockholders’ equity of $808.3 million, excluding non-controlling interest of $24.1 million.
In the reported quarter, SHOO repurchased $38.2 million of its common stock, including shares acquired via the net settlement of employees’ stock awards. Moreover, management approved a quarterly cash dividend of 21 cents per share, payable Sep 23, 2024, to stockholders of record as of Sep 13.
Outlook
For 2024, the company anticipates an 11-13% increase in revenues from that reported in 2023, with adjusted earnings of $2.55-$2.65 per share. Notably, the company reported earnings of $2.30 per share in 2023.
Eye These Solid Picks
Some better-ranked stocks in the retail space are The Gap, Inc. (GPS - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) and Urban Outfitters Inc. (URBN - Free Report) .
Gap is a premier international specialty retailer, which offers a diverse range of clothing, accessories and personal care products. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Gap’s fiscal 2024 earnings and sales indicates growth of 22.4% and 0.2%, respectively, from fiscal 2023 reported figures. GPS has a trailing four-quarter average earnings surprise of 202.7%.
Abercrombie is a specialty retailer of premium, high-quality casual apparel. It flaunts a Zacks Rank of 1 at present. ANF delivered a 28.9% earnings surprise in the last reported quarter.
The consensus estimate for Abercrombie’s fiscal 2024 earnings and sales indicates growth of 48.9% and 11.1%, respectively, from the fiscal 2023 reported levels. ANF has a trailing four-quarter average earnings surprise of 210.3%.
Urban Outfitters is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home décor, and gift products. It currently has a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Urban Outfitters’ fiscal 2024 earnings and sales indicates growth of 9.9% and 5.8%, respectively, from the year-ago actuals. URBN has a trailing four-quarter average earnings surprise of 16.9%.