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What's in the Cards for Steven Madden (SHOO) in Q2 Earnings?

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We expect Steven Madden, Ltd. (SHOO - Free Report) to report year-over-year increases in its top and the bottom line when it releases second-quarter 2021 results on Jul 28 before market open. The Zacks Consensus Estimate for the quarterly earnings has been revised a penny upward in the past seven days to 30 cents. The company reported a loss of 19 cents per share in the year-ago quarter. The consensus estimate of $369 million for quarterly revenues suggests a significant improvement from $142.8 million registered in the prior-year quarter.

A glance at the fashion-forward footwear, apparel and accessories dealer’s performance in the trailing four quarters shows that it has an earnings surprise of 47.9%, on average.

Key Factors to Note

Steven Madden is focused on creating a trendy merchandise, deepening relations with customers via marketing, enhancing digital solutions, and efficiently controlling inventory and expenses. Also, it is benefiting from its European joint venture and the BB Dakota buyout. On its last earnings call, management had anticipated revenues of $360-$365 million for the second quarter of 2021. It envisioned earnings per share of 26-28 cents for the same period.

The company has been witnessing immense strength in the e-commerce business amid the ongoing pandemic to date. Solid gains from increased investment in digital marketing and robust online capabilities such as “try before you buy” have been contributing to its performance. The company rolled out buy online, pick-up in store across its outlets, and introduced advanced delivery and return options.

On the flip side, Steven Madden has been witnessing sluggishness in its wholesale business for a while now. We note that management is cautious about the wholesale channel due to supply-chain disruptions as well as the wholesale customers' conservative approach to orders for spring.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Steven Madden this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Steven Madden, Ltd. Price and EPS Surprise

Steven Madden, Ltd. Price and EPS Surprise

Steven Madden, Ltd. price-eps-surprise | Steven Madden, Ltd. Quote

Steven Madden currently has a Zacks Rank #2 and an Earnings ESP of +6.67%.

More Stocks With Favorable Combinations

Here are a few other companies worth considering as our model shows that these too have the right combination of elements to beat on earnings:

PVH Corp. (PVH - Free Report) has an Earnings ESP of +1.29% and a Zacks Rank of 1, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Wolverine (WWW - Free Report) has an Earnings ESP of +3.38% and a Zacks Rank of 2 at present.

Deckers (DECK - Free Report) has an Earnings ESP of +41.18% and a Zacks Rank #3, currently.