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Why Is Steven Madden (SHOO) Up 16.1% Since Last Earnings Report?

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A month has gone by since the last earnings report for Steven Madden (SHOO - Free Report) . Shares have added about 16.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Steven Madden due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Steven Madden’s Q3 Earnings Beat, Revenues Down Y/Y

Steven Madden reported better-than-expected results in third-quarter 2023 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. While revenues declined year over year, earnings improved. The company posted adjusted quarterly earnings of 88 cents a share, which beat the Zacks Consensus Estimate by a penny. The same increased 10.1% from earnings of 79 cents per share reported in the prior-year period.

Q3 Highlights

Total revenues fell 0.7% year over year to $552.7 million. While net sales of $549.8 million dipped 0.6%, commission and licensing fee income of $2.9 million decreased 17.1% from the year-ago period’s level. The top line came above the consensus estimate of $545 million.

Gross profit rose 1.4% year over year to $232.6 million. Also, the gross margin expanded 90 basis points (bps) to 42.1% on increases in both the wholesale and direct-to-consumer (DTC) channels. Gross profit, as a percentage of wholesale revenues, increased 200 bps to 33.6%, driven by higher margin in the Wholesale accessories/apparel business. However, gross profit as a percentage of direct-to-consumer revenues, improved 250 bps to 63.7% owing to lower promotional activity and freight expenses.

Adjusted operating expenses dipped 0.8% year over year to $149.3 million. However, as a percentage of revenues, adjusted operating expenses remained flat at 27%.

Steven Madden reported an adjusted operating income of $83.4 million, up 5.6% from the same quarter a year ago. The adjusted operating margin increased 90 bps to 15.1%.

Segmental Performance

Revenues for the Wholesale business dipped 0.3% year over year to $433.5 million. We note that Wholesale footwear revenues fell 7.5% year over year, while Wholesale accessories/apparel revenues were up 22.7%.

DTC revenues dropped 1.8% to $116.4 million, driven by a decrease in the e-commerce unit.

Other Financial Aspects

Steven Madden ended the reported quarter with cash and cash equivalents of $191.8 million, short-term investments of $14.6 million and stockholders’ equity of $837 million, excluding non-controlling interest of $16.7 million. Management incurred capital expenditures of $13.9 million in the first nine months of 2023.


Management is focused on operating discipline to navigate through a tough macro backdrop. Trends across the industry softened starting in September, which along with the impact of the crisis in the Middle East on the company’s Israel and Middle East joint ventures, make it highly cautious in the near term. Nonetheless, the company is confident it will deliver sustainable revenue and earnings growth over the long haul.

Steven Madden revised guidance for 2023. It now projects revenues to decline approximately 7% from 2022 versus the earlier anticipation of a decrease in the range of 6.5-8%. SHOO envisions earnings per share (EPS) of $2.40 compared to the previous projection of $2.38-$2.48 for the year. In 2022, Steven Madden reported revenues of $2.1 billion and adjusted EPS of $2.80.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -12.45% due to these changes.

VGM Scores

Currently, Steven Madden has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.


Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Steven Madden has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Steven Madden belongs to the Zacks Shoes and Retail Apparel industry. Another stock from the same industry, Skechers (SKX - Free Report) , has gained 20.4% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.

Skechers reported revenues of $2.02 billion in the last reported quarter, representing a year-over-year change of +7.8%. EPS of $0.93 for the same period compares with $0.55 a year ago.

For the current quarter, Skechers is expected to post earnings of $0.50 per share, indicating a change of +4.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.4% over the last 30 days.

Skechers has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.

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