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Steven Madden (SHOO) Queued Up for Q4 Earnings: Things to Note

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Steven Madden, Ltd. (SHOO - Free Report) is likely to witness a year-over-year increase in the top and the bottom line when it reports fourth-quarter 2021 earnings on Feb 24. The Zacks Consensus Estimate for revenues is pegged at $527 million, suggesting a rise of 49.2% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for earnings has risen by a penny over the past 30 days to 73 cents per share, indicating significant growth from 27 cents reported in the prior-year period. The company, which designs, sources, markets and sells fashion-forward branded and private label footwear, has a trailing four-quarter earnings surprise of 41.9%, on average. Steven Madden delivered an earnings surprise of 5.1% in the last reported quarter.

The Zacks Consensus Estimate for 2021 revenues is pegged at $1.81 billion, suggesting a jump of 50.8% from the prior-year quarter’s reported figure. The consensus mark for 2021 earnings per share (EPS) stands at $2.36, indicating a considerable rise from 64 cents reported in the year-ago period.

Steven Madden, Ltd. Price, Consensus and EPS Surprise

Steven Madden, Ltd. Price, Consensus and EPS Surprise

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

Key Factors to Consider

Steven Madden’s strong e-commerce business has been a driver. The e-commerce momentum continued in the third quarter of 2021, wherein digital sales represented about 49% of the company’s total Retail segment sales. The company’s e-commerce wing continues to gain from prudent investments in digital marketing as well as efforts to optimize features and the functionality of its website. Gains from increased investments in digital marketing and robust consumer reception to capabilities, such as try before you buy, have been contributing to SHOO’s performance. The company has also been significantly accelerating its digital commerce initiatives concerning distribution. These upsides bode well for the quarter under review.

Apart from this, Steve Madden has been focused on creating trend-right merchandise assortments, deepening relations with customers via marketing, expanding in international markets and efficiently controlling expenses. Also, the company has been benefiting from its prudent buyouts, such as GREATS and BB Dakota.

That said, management remains cautious about uncertainties associated with the pandemic and its impact on the business. On the third-quarter earnings call, management highlighted that the company has been witnessing continued supply-chain disruptions globally. These concerns are expected to have lingered in the quarter to be reported along with higher freight costs.  

However, sturdy third-quarter results prompted management to raise the guidance for 2021 despite global supply-chain disruptions. The company anticipates both wholesale footwear and wholesale accessories and apparel to have registered double-digit growth in the fourth quarter from the 2019 tally. For 2021, management projects revenue growth of 50-52% from the fiscal 2020 reading. Reported EPS is expected in the range of $2.21-$2.26, while adjusted EPS is likely to fall in the bracket of $2.30-$2.35.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Steven Madden this time. 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, which is not the case here.

Steven Madden currently has a Zacks Rank #3 and an Earnings ESP of -0.92%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Companies Likely to Post a Beat

Lowe's Companies (LOW - Free Report) has an Earnings ESP of +6.81% and carries a Zacks Rank of 2. The company is likely to register an increase in the top and bottom lines when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at $1.71 per share, suggesting a 28.6% increase from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Lowe's quarterly revenues is pegged at $20.82 billion, suggesting a jump of 2.5% from the figure reported in the prior-year quarter. LOW has a trailing four-quarter earnings surprise of 14.3%, on average.

Costco (COST - Free Report) has an Earnings ESP of +0.75% and a Zacks Rank #3. Costco is anticipated to register a top-and bottom-line increase when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $51.1 billion, indicating growth of about 14% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Costco’s bottom line has risen by 1.1% in the past 30 days to $2.67 per share. The consensus estimate for earnings suggests a jump of 24.8% from the year-ago quarter’s reported figure. Costco delivered an earnings beat of 8.3%, on average, in the trailing four quarters.

Home Depot (HD - Free Report) has an Earnings ESP of +6.42% and carries a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for Home Depot’s quarterly earnings has remained the same in the past 30 days at $3.20 per share, suggesting 16.8% growth from the year-ago quarter’s reported number.

The Zacks Consensus Estimate for its quarterly revenues is pegged at $34.61 billion, which suggests a rise of 7.3% from the figure reported in the prior-year quarter. HD has a trailing four-quarter earnings surprise of 12.1%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.