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Steven Madden (SHOO) Up 2.4% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Steven Madden (SHOO - Free Report) . Shares have added about 2.4% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Steven Madden due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Steven Madden Q2 Earnings & Revenues Beat Estimates
Steven Madden 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.
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 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%.
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%.
DTC revenues increased 6.4% year over year to $136.4 million in the second quarter.
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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
At this time, Steven Madden has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Steven Madden has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Steven Madden is part of the Zacks Shoes and Retail Apparel industry. Over the past month, Carter's (CRI - Free Report) , a stock from the same industry, has gained 13%. The company reported its results for the quarter ended June 2024 more than a month ago.
Carter's reported revenues of $564.43 million in the last reported quarter, representing a year-over-year change of -6%. EPS of $0.76 for the same period compares with $0.64 a year ago.
For the current quarter, Carter's is expected to post earnings of $1.28 per share, indicating a change of -30.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.7% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for Carter's. Also, the stock has a VGM Score of A.
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Steven Madden (SHOO) Up 2.4% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Steven Madden (SHOO - Free Report) . Shares have added about 2.4% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Steven Madden due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Steven Madden Q2 Earnings & Revenues Beat Estimates
Steven Madden 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.
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 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%.
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%.
DTC revenues increased 6.4% year over year to $136.4 million in the second quarter.
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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
At this time, Steven Madden has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Steven Madden has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Steven Madden is part of the Zacks Shoes and Retail Apparel industry. Over the past month, Carter's (CRI - Free Report) , a stock from the same industry, has gained 13%. The company reported its results for the quarter ended June 2024 more than a month ago.
Carter's reported revenues of $564.43 million in the last reported quarter, representing a year-over-year change of -6%. EPS of $0.76 for the same period compares with $0.64 a year ago.
For the current quarter, Carter's is expected to post earnings of $1.28 per share, indicating a change of -30.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.7% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for Carter's. Also, the stock has a VGM Score of A.