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Steven Madden Stock Gains on Upbeat Q4 Earnings Outlook
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Shares of footwear retailer, Steven Madden Limited (SHOO - Free Report) rallied 4.8% on Jan 10, 2016, after management stated that the company will meet the higher end of the previously provided earnings guidance in the fourth-quarter 2016. Steven Madden announced its preliminary sales results for the fourth quarter and fiscal year ended Dec 31, 2016. Net sales for the fourth quarter went down 2.3% to $336.4 million and were also behind the Zacks Consensus Estimate of $347.9 million by 3.3%.
Sales for the wholesale division decreased 5.1% to $251.5 million, while Retail segment increased 7.1% to $84.9 million. Further, comparable store sales for fourth-quarter 2016 increased 1.1%.
For 2016, net sales dipped 0.4% year over year to $1.4 billion. While Wholesale segment net sales decreased 2.4% to $1.1 billion, Retail net sales increased 9.3% to $262.8 million. Comparable store sales for fiscal year 2016 gained 4.0%. The sales were below expectations for the Zacks Rank #4 (Sell) company, due to softness in cold weather accessories as well as cessation of an agreement with one of its distributor in Asia.
Management stated that it anticipates earnings per share to be at the high end of its previously provided earnings guidance range range of of $1.98 to $2.03 despite the challenging retail environment. The upbeat in profit may be due to higher gross margins and lower tax rates incurred by the company during the fourth quarter. Management confirmed that both wholesale footwear and wholesale accessories segment have reported higher gross margins during the quarter. The Zacks Consensus Estimate for the fourth quarter is pegged at 48 cents, up 12% year over year.
Steven Madden has exhibited a decent performance in the past. The company has reported an average earnings surprise of 1.43% in the trailing four quarters. The share price of the stock gained 1.5% in the past six months, outperforming the Zacks categorized Shoes & Retail Apparel industry which witnessed a decline of 8.8% in the same time frame.
Stock Picks
Better-ranked stocks in the broader consumer discretionary sector areTailored brands Inc. , Francesca’s Holdings Corporation and Perry Ellis International Inc. .
Tailored Brands and Francesca’s Holdings sports a Zacks Rank #1 (Strong Buy) and has an expected earnings growth of 17.5% and 13.8%, respectively. Perry Ellis carries a Zacks Rank #2 (Buy). The company has an average earnings surprise of 19.5% in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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Steven Madden Stock Gains on Upbeat Q4 Earnings Outlook
Shares of footwear retailer, Steven Madden Limited (SHOO - Free Report) rallied 4.8% on Jan 10, 2016, after management stated that the company will meet the higher end of the previously provided earnings guidance in the fourth-quarter 2016. Steven Madden announced its preliminary sales results for the fourth quarter and fiscal year ended Dec 31, 2016. Net sales for the fourth quarter went down 2.3% to $336.4 million and were also behind the Zacks Consensus Estimate of $347.9 million by 3.3%.
Sales for the wholesale division decreased 5.1% to $251.5 million, while Retail segment increased 7.1% to $84.9 million. Further, comparable store sales for fourth-quarter 2016 increased 1.1%.
For 2016, net sales dipped 0.4% year over year to $1.4 billion. While Wholesale segment net sales decreased 2.4% to $1.1 billion, Retail net sales increased 9.3% to $262.8 million. Comparable store sales for fiscal year 2016 gained 4.0%. The sales were below expectations for the Zacks Rank #4 (Sell) company, due to softness in cold weather accessories as well as cessation of an agreement with one of its distributor in Asia.
Management stated that it anticipates earnings per share to be at the high end of its previously provided earnings guidance range range of of $1.98 to $2.03 despite the challenging retail environment. The upbeat in profit may be due to higher gross margins and lower tax rates incurred by the company during the fourth quarter. Management confirmed that both wholesale footwear and wholesale accessories segment have reported higher gross margins during the quarter. The Zacks Consensus Estimate for the fourth quarter is pegged at 48 cents, up 12% year over year.
Steven Madden has exhibited a decent performance in the past. The company has reported an average earnings surprise of 1.43% in the trailing four quarters. The share price of the stock gained 1.5% in the past six months, outperforming the Zacks categorized Shoes & Retail Apparel industry which witnessed a decline of 8.8% in the same time frame.
Stock Picks
Better-ranked stocks in the broader consumer discretionary sector areTailored brands Inc. , Francesca’s Holdings Corporation and Perry Ellis International Inc. .
Tailored Brands and Francesca’s Holdings sports a Zacks Rank #1 (Strong Buy) and has an expected earnings growth of 17.5% and 13.8%, respectively. Perry Ellis carries a Zacks Rank #2 (Buy). The company has an average earnings surprise of 19.5% in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>