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Steven Madden (SHOO) Q4 Revenues & Earnings Beat, Increase Y/Y
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Shares of Steven Madden, Ltd. (SHOO - Free Report) increased 3.8% during the trading session on Feb 24 following the company’s sturdy fourth-quarter 2021 results. Both top and the bottom lines improved year over year.
Quarterly results reflect gains from brand strength and solid consumer demand for the company’s merchandise assortments. The direct-to-consumer business continued to exhibit momentum. Over the past six months, shares of this renowned fashion-footwear player have increased 12.1% against the industry’s 5% dip.
Q4 Highlights
Steven Madden delivered earnings of 87 cents a share, which beat the Zacks Consensus Estimate of 73 cents. Also, the bottom line grew significantly from adjusted earnings of 27 cents per share recorded in the year-earlier quarter. Higher sales and margins drove the bottom-line performance.
Total revenues jumped 63.9% year over year to $578.5 million. This takes into account net sales of $575.1 million, which increased 64.7% year over year, as well as commission and licensing fee income of $3.3 million that dropped 15.4% from the last-year level. The Zacks Consensus Estimate for total revenues stood at $527 million.
Gross profit surged 76.1% year over year to $238.3 million while consolidated gross margin expanded 300 basis points (bps) to 41.2%. Wholesale gross margin increased 350 bps to 31.8% from the year-ago period’s level while retail gross margin contracted 210 bps to 63.5%.
The company reported an adjusted operating income of $86.9 million, up from $25.6 million registered in the same quarter a year ago. Adjusted operating margin expanded 770 bps to 15%.
Segmental Performance
Revenues for the Wholesale business increased 56.1% year over year to $410.5 million. Wholesale footwear revenues climbed 61.9% year over year while wholesale accessories and apparel revenues were up 41.7%.
Direct-to-consumer revenues surged 91.3% year over year to $164.7 million. SHOO ended the fourth quarter with 214 brick-and-mortar retail outlets, six e-commerce websites and 17 company-operated concessions across the international markets.
Other Financial Aspects
Steven Madden, which currently has a Zacks Rank #3 (Hold), ended the reported quarter with cash, cash equivalents and short-term investments of $263.5 million and shareholders’ equity of $812.1 million excluding non-controlling interest of $8.4 million. As of Dec 31, 2021, the company had inventories of $255.2 million, up 151.7% year over year.
CapEx came in at $6.6 million during 2021. The company generated net cash from operating activities of $159.5 million at the end of the fourth quarter.
In the reported quarter, management repurchased about 1,038,061 shares for $48.5 million, including shares acquired via the net settlement of employees’ stock awards. In 2021, it repurchased 2,841,405 shares for roughly $123.2 million, including shares acquired via the net settlement of employee stock awards.
Moreover, the company’s board approved a quarterly cash dividend of 21 cents per share, suggesting a 40% hike over the previous quarterly dividend. This is payable on Mar 25, 2022 to stockholders of record as on Mar 11.
2022 View
For 2022, management projects revenues to grow 10-13% versus 2021. Steven Madden envisions earnings per share in the bracket of $2.66 to $2.76 while adjusted earnings per share are guided in the range of $2.73 to $2.83.
In 2021, SHOO delivered revenues of $1.87 billion and adjusted earnings per share of $2.50.
The Zacks Consensus Estimate for 2021 revenues and earnings stands at $2.04 billion and $2.88, respectively.
Solid Consumer Discretionary Bets
Some better-ranked stocks from the Consumer Discretionary sector are Ralph Lauren (RL - Free Report) , Oxford Industries (OXM - Free Report) and Gildan Activewear (GIL - Free Report) .
The Zacks Consensus Estimate for Ralph Lauren's current financial year’s sales and earnings per share suggests growth of 40% and 374.7%, respectively, from the corresponding year-ago period's reported numbers.
Oxford Industries, an apparel company, currently carries a Zacks Rank of 2. OXM has a trailing four-quarter earnings surprise of 96.7%, on average.
The Zacks Consensus Estimate for Oxford Industries’ current financial year’s sales and earnings suggests growth of 2.1% and 4%, respectively, from the corresponding year-ago period's reported numbers.
Gildan Activewear, the manufacturer and marketer of branded basic activewear, presently carries a Zacks Rank #2 (Buy). GIL has a trailing four-quarter earnings surprise of 85%, on average.
The Zacks Consensus Estimate for Gildan Activewear’s current financial-year sales and earnings suggests growth of 8.2% and 9.4% each from the respective year-ago period’s reported numbers.
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Steven Madden (SHOO) Q4 Revenues & Earnings Beat, Increase Y/Y
Shares of Steven Madden, Ltd. (SHOO - Free Report) increased 3.8% during the trading session on Feb 24 following the company’s sturdy fourth-quarter 2021 results. Both top and the bottom lines improved year over year.
Quarterly results reflect gains from brand strength and solid consumer demand for the company’s merchandise assortments. The direct-to-consumer business continued to exhibit momentum. Over the past six months, shares of this renowned fashion-footwear player have increased 12.1% against the industry’s 5% dip.
Q4 Highlights
Steven Madden delivered earnings of 87 cents a share, which beat the Zacks Consensus Estimate of 73 cents. Also, the bottom line grew significantly from adjusted earnings of 27 cents per share recorded in the year-earlier quarter. Higher sales and margins drove the bottom-line performance.
Total revenues jumped 63.9% year over year to $578.5 million. This takes into account net sales of $575.1 million, which increased 64.7% year over year, as well as commission and licensing fee income of $3.3 million that dropped 15.4% from the last-year level. The Zacks Consensus Estimate for total revenues stood at $527 million.
Gross profit surged 76.1% year over year to $238.3 million while consolidated gross margin expanded 300 basis points (bps) to 41.2%. Wholesale gross margin increased 350 bps to 31.8% from the year-ago period’s level while retail gross margin contracted 210 bps to 63.5%.
The company reported an adjusted operating income of $86.9 million, up from $25.6 million registered in the same quarter a year ago. Adjusted operating margin expanded 770 bps to 15%.
Segmental Performance
Revenues for the Wholesale business increased 56.1% year over year to $410.5 million. Wholesale footwear revenues climbed 61.9% year over year while wholesale accessories and apparel revenues were up 41.7%.
Direct-to-consumer revenues surged 91.3% year over year to $164.7 million. SHOO ended the fourth quarter with 214 brick-and-mortar retail outlets, six e-commerce websites and 17 company-operated concessions across the international markets.
Other Financial Aspects
Steven Madden, which currently has a Zacks Rank #3 (Hold), ended the reported quarter with cash, cash equivalents and short-term investments of $263.5 million and shareholders’ equity of $812.1 million excluding non-controlling interest of $8.4 million. As of Dec 31, 2021, the company had inventories of $255.2 million, up 151.7% year over year.
CapEx came in at $6.6 million during 2021. The company generated net cash from operating activities of $159.5 million at the end of the fourth quarter.
In the reported quarter, management repurchased about 1,038,061 shares for $48.5 million, including shares acquired via the net settlement of employees’ stock awards. In 2021, it repurchased 2,841,405 shares for roughly $123.2 million, including shares acquired via the net settlement of employee stock awards.
Moreover, the company’s board approved a quarterly cash dividend of 21 cents per share, suggesting a 40% hike over the previous quarterly dividend. This is payable on Mar 25, 2022 to stockholders of record as on Mar 11.
2022 View
For 2022, management projects revenues to grow 10-13% versus 2021. Steven Madden envisions earnings per share in the bracket of $2.66 to $2.76 while adjusted earnings per share are guided in the range of $2.73 to $2.83.
In 2021, SHOO delivered revenues of $1.87 billion and adjusted earnings per share of $2.50.
The Zacks Consensus Estimate for 2021 revenues and earnings stands at $2.04 billion and $2.88, respectively.
Solid Consumer Discretionary Bets
Some better-ranked stocks from the Consumer Discretionary sector are Ralph Lauren (RL - Free Report) , Oxford Industries (OXM - Free Report) and Gildan Activewear (GIL - Free Report) .
Ralph Lauren currently sports a Zacks Rank #1 (Strong Buy). RL has a trailing four-quarter earnings surprise of 94.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ralph Lauren's current financial year’s sales and earnings per share suggests growth of 40% and 374.7%, respectively, from the corresponding year-ago period's reported numbers.
Oxford Industries, an apparel company, currently carries a Zacks Rank of 2. OXM has a trailing four-quarter earnings surprise of 96.7%, on average.
The Zacks Consensus Estimate for Oxford Industries’ current financial year’s sales and earnings suggests growth of 2.1% and 4%, respectively, from the corresponding year-ago period's reported numbers.
Gildan Activewear, the manufacturer and marketer of branded basic activewear, presently carries a Zacks Rank #2 (Buy). GIL has a trailing four-quarter earnings surprise of 85%, on average.
The Zacks Consensus Estimate for Gildan Activewear’s current financial-year sales and earnings suggests growth of 8.2% and 9.4% each from the respective year-ago period’s reported numbers.