We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Steven Madden's (SHOO) Q3 Earnings Likely to Improve Y/Y?
Read MoreHide Full Article
Steven Madden, Ltd. (SHOO - Free Report) is slated to report third-quarter 2018 results on Oct 30. In the trailing four quarters, this designer, marketer and seller of footwear and fashion accessories has outperformed the Zacks Consensus Estimate by an average of 3.4%. In the last reported quarter, the company delivered positive earnings surprise of 3.4%. Investors are counting on another beat by Steven Madden in the to-be-reported quarter.
How Are Estimates Faring?
After registering a bottom-line increase of about 19.6% in the second quarter of 2018, Steven Madden is likely to record year-over-year growth of roughly 21.6% in the third quarter. This is quite evident from the Zacks Consensus Estimate for the quarter under review, which is pegged at 62 cents compared with 51 cents reported in the year-ago quarter. We note that the Zacks Consensus Estimate has improved by a penny in the last seven days.
The Zacks Consensus Estimate for revenues is $469.3 million, up approximately 6.4% from the year-ago quarter. We note that total revenue of this NY-based company had increased 5.8% in the last reported quarter.
Let’s delve deeper and find out the factors impacting the results.
Factors Holding Key to Steven Madden’s Performance
Steven Madden is leaving no stone unturned to boost the top and bottom line. Notably, the company is focusing on enhancing product portfolio. It is also taking several initiatives to expand globally. Notably, the company witnessed 24% revenue growth internationally in the second quarter. The company’s directly-owned subsidiaries in Canada and Mexico, SM Europe JV as well as the distributor business reported strong results.
Further, Steven Madden expects its international business to sustain momentum in 2018 on strategic investments. The company is optimistic about growth in the Middle East, Italy and India. The company anticipates Asia to be a major contributor to net sales. The company also continues to witness robust growth in the Wholesale Footwear and Accessories segments.
The private label handbags mainly aided sales of the wholesale accessories category. Further, the company is witnessing solid trends at the Steve Madden handbag and special make up businesses. Management expects the wholesale accessories business to maintain the momentum, backed by strength in Steve Madden and private label handbag businesses, and addition of Anne Klein handbags.
However, Steven Madden is witnessing a rise in cost of goods sold and operating expenses that may weigh on its margins. Operating margin has been contracting for quite some time now. Additionally, imposition of tariffs on additional consumer goods such as shoes, handbags and others imported from China, owing to US-China trade war may hurt business prospects of Steven Madden. Nonetheless, to lower its dependency on China, the company is contemplating to shift more of its handbag production to Cambodia.
Steven Madden, Ltd. Price, Consensus and EPS Surprise
Our proven model does not conclusively show that Steven Madden is likely to beat estimates this quarter. A stock needs to have both — a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
American Eagle Outfitters (AEO - Free Report) has an Earnings ESP of +9.76% and a Zacks Rank #3.
Foot Locker (FL - Free Report) has an Earnings ESP of +1.00% and a Zacks Rank #3.
Zumiez (ZUMZ - Free Report) has an Earnings ESP of +2.41% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Is Steven Madden's (SHOO) Q3 Earnings Likely to Improve Y/Y?
Steven Madden, Ltd. (SHOO - Free Report) is slated to report third-quarter 2018 results on Oct 30. In the trailing four quarters, this designer, marketer and seller of footwear and fashion accessories has outperformed the Zacks Consensus Estimate by an average of 3.4%. In the last reported quarter, the company delivered positive earnings surprise of 3.4%. Investors are counting on another beat by Steven Madden in the to-be-reported quarter.
How Are Estimates Faring?
After registering a bottom-line increase of about 19.6% in the second quarter of 2018, Steven Madden is likely to record year-over-year growth of roughly 21.6% in the third quarter. This is quite evident from the Zacks Consensus Estimate for the quarter under review, which is pegged at 62 cents compared with 51 cents reported in the year-ago quarter. We note that the Zacks Consensus Estimate has improved by a penny in the last seven days.
The Zacks Consensus Estimate for revenues is $469.3 million, up approximately 6.4% from the year-ago quarter. We note that total revenue of this NY-based company had increased 5.8% in the last reported quarter.
Let’s delve deeper and find out the factors impacting the results.
Factors Holding Key to Steven Madden’s Performance
Steven Madden is leaving no stone unturned to boost the top and bottom line. Notably, the company is focusing on enhancing product portfolio. It is also taking several initiatives to expand globally. Notably, the company witnessed 24% revenue growth internationally in the second quarter. The company’s directly-owned subsidiaries in Canada and Mexico, SM Europe JV as well as the distributor business reported strong results.
Further, Steven Madden expects its international business to sustain momentum in 2018 on strategic investments. The company is optimistic about growth in the Middle East, Italy and India. The company anticipates Asia to be a major contributor to net sales. The company also continues to witness robust growth in the Wholesale Footwear and Accessories segments.
The private label handbags mainly aided sales of the wholesale accessories category. Further, the company is witnessing solid trends at the Steve Madden handbag and special make up businesses. Management expects the wholesale accessories business to maintain the momentum, backed by strength in Steve Madden and private label handbag businesses, and addition of Anne Klein handbags.
However, Steven Madden is witnessing a rise in cost of goods sold and operating expenses that may weigh on its margins. Operating margin has been contracting for quite some time now. Additionally, imposition of tariffs on additional consumer goods such as shoes, handbags and others imported from China, owing to US-China trade war may hurt business prospects of Steven Madden. Nonetheless, to lower its dependency on China, the company is contemplating to shift more of its handbag production to Cambodia.
Steven Madden, Ltd. Price, Consensus and EPS Surprise
Steven Madden, Ltd. Price, Consensus and EPS Surprise | Steven Madden, Ltd. Quote
What the Zacks Model Unveils?
Our proven model does not conclusively show that Steven Madden is likely to beat estimates this quarter. A stock needs to have both — a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Steven Madden has a Zacks Rank #3 but an Earnings ESP of -0.36%, which makes surprise prediction difficult. You can see the complete list of today’s Zacks #1 Rank stocks here.
3 Stocks With Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
American Eagle Outfitters (AEO - Free Report) has an Earnings ESP of +9.76% and a Zacks Rank #3.
Foot Locker (FL - Free Report) has an Earnings ESP of +1.00% and a Zacks Rank #3.
Zumiez (ZUMZ - Free Report) has an Earnings ESP of +2.41% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>