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Should You Consider Adding Steve Madden Stock Before Q3 Earnings?
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We expect Steven Madden, Ltd. (SHOO - Free Report) to report a year-over-year increase in its top line when it releases third-quarter 2024 earnings on Nov. 7, before market open. Investors are closely monitoring for insights into the company's performance and strategic direction.
The company has effectively established a niche in the competitive footwear market by emphasizing trendy, fashion-forward designs that attract a wide consumer base. The Zacks Consensus Estimate for third-quarter revenues is $606.8 million, which indicates an increase of 9.8% from the prior-year figure.
The bottom line is also expected to have risen year over year. Over the past 30 days, the Zacks Consensus Estimate for earnings per share has remained stable at 89 cents, which indicates an increase of 1.1% from the year-ago quarter.
Steven Madden has a trailing four-quarter earnings surprise of 9.5%, on average. In the last reported quarter, this Long Island City, NY-based company surpassed the Zacks Consensus Estimate by a margin of 11.8%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Steven Madden, Ltd. Price, Consensus and EPS Surprise
Factors Likely to Have Shaped Steven Madden's Q3 Performance
Steven Madden has been strategically concentrating on several key initiatives, which are likely to favorably impact third-quarter results. The company is prioritizing growth in its direct-to-consumer (DTC) segment, expanding into accessories and apparel beyond footwear and strengthening its international presence, all while maintaining its core U.S. wholesale business.
Steve Madden's DTC channels, especially digital sales, are anticipated to have supported its revenue growth. The company’s investments in upgrading its e-commerce platform and refining digital marketing strategies are yielding results, with stronger online engagement. Furthermore, the expansion of physical stores, alongside efficient inventory management and on-trend product selections, is likely to have boosted sales through DTC channels. We project DTC channel revenues to grow 8% year over year .
The diversification into accessories and apparel continues to be a strong growth driver for Steven Madden. The company's handbag and apparel segments have shown robust growth, with new product launches and expanded assortments in key wholesale accounts. It reported a 74% revenue increase in the second quarter in accessories and apparel, with handbag sales rising 30% thanks to popular styles like structured mini satchels. Apparel revenues grew nearly 80% and the launch of Madden Girl apparel at major retailers such as Macy's and Kohl’s underscores its expanding presence in this category.
Furthermore, Steve Madden's strategic emphasis on expanding its international presence is expected to have contributed to revenue growth. The company has been steadily increasing its footprint across key regions, including Europe, the Middle East and Africa (EMEA), the Americas (excluding the United States) and Asia Pacific (APAC). The EMEA region continues to be a major growth driver, with strong momentum from the Middle East joint venture and rapid expansion in the South Africa joint venture. By building on brand recognition and leveraging local partnerships, Steve Madden is well-positioned to capture a larger share of the global market.
However, the operating environment remains challenging as consumers cut back on discretionary spending and wholesale customers reduce orders to manage inventory. Management has expressed caution amid these tough conditions and challenging year-over-year comparisons. Higher operating expenses add to these concerns, with any further deleverage likely to pressure the bottom line. We anticipate adjusted operating expenses, as a percentage of sales, to deleverage 120 basis points in the third quarter.
What the Zacks Model Predicts for SHOO
Our proven model does not conclusively predict 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. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Steven Madden currently has an Earnings ESP of 0.00% and a Zacks Rank of 3.
Stocks With the Favorable Combination
Here are some companies, which according to our model, have the right combination of elements to beat on earnings this season.
The Zacks Consensus Estimate for third-quarter earnings per share is pegged at 12 cents, which implies a 14.3% year-over-year decline.
Dutch Bros’ top line is expected to have increased year over year. The consensus estimate for quarterly revenues is pegged at $324.5 million, which indicates growth of 22.7% from the prior-year quarter. BROS has a trailing four-quarter earnings surprise of 149%, on average.
Abercrombie & Fitch Co. (ANF - Free Report) has an Earnings ESP of +3.97% and a Zacks Rank of 2 at present. The company is anticipated to witness a top-line increase in its third-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.18 billion, which indicates an 11.3% increase from the year-ago quarter.
The company’s bottom line is expected to have increased. The consensus estimate for Abercrombie & Fitch’s earnings is pegged at $2.31 per share, up 26.2% from the year-ago quarter. ANF has a trailing four-quarter earnings surprise of 28%, on average.
Best Buy (BBY - Free Report) presently has an Earnings ESP of +0.06% and a Zacks Rank of 2. The company is likely to register a top-line decline when it reports fiscal third-quarter results. The Zacks Consensus Estimate for BBY’s quarterly revenues is pegged at $9.63 billion, which indicates a dip of 1.3% from the figure reported in the prior-year quarter.
The consensus estimate for Best Buy’s quarterly earnings has remained unchanged over the past 30 days at $1.30 per share. The figure indicates growth of 0.8% from the year-ago quarter’s number. BBY delivered an average earnings surprise of 11.4% in the trailing four quarters.
Image: Bigstock
Should You Consider Adding Steve Madden Stock Before Q3 Earnings?
We expect Steven Madden, Ltd. (SHOO - Free Report) to report a year-over-year increase in its top line when it releases third-quarter 2024 earnings on Nov. 7, before market open. Investors are closely monitoring for insights into the company's performance and strategic direction.
The company has effectively established a niche in the competitive footwear market by emphasizing trendy, fashion-forward designs that attract a wide consumer base. The Zacks Consensus Estimate for third-quarter revenues is $606.8 million, which indicates an increase of 9.8% from the prior-year figure.
The bottom line is also expected to have risen year over year. Over the past 30 days, the Zacks Consensus Estimate for earnings per share has remained stable at 89 cents, which indicates an increase of 1.1% from the year-ago quarter.
Steven Madden has a trailing four-quarter earnings surprise of 9.5%, on average. In the last reported quarter, this Long Island City, NY-based company surpassed the Zacks Consensus Estimate by a margin of 11.8%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Steven Madden, Ltd. Price, Consensus and EPS Surprise
Steven Madden, Ltd. price-consensus-eps-surprise-chart | Steven Madden, Ltd. Quote
Factors Likely to Have Shaped Steven Madden's Q3 Performance
Steven Madden has been strategically concentrating on several key initiatives, which are likely to favorably impact third-quarter results. The company is prioritizing growth in its direct-to-consumer (DTC) segment, expanding into accessories and apparel beyond footwear and strengthening its international presence, all while maintaining its core U.S. wholesale business.
Steve Madden's DTC channels, especially digital sales, are anticipated to have supported its revenue growth. The company’s investments in upgrading its e-commerce platform and refining digital marketing strategies are yielding results, with stronger online engagement. Furthermore, the expansion of physical stores, alongside efficient inventory management and on-trend product selections, is likely to have boosted sales through DTC channels. We project DTC channel revenues to grow 8% year over year .
The diversification into accessories and apparel continues to be a strong growth driver for Steven Madden. The company's handbag and apparel segments have shown robust growth, with new product launches and expanded assortments in key wholesale accounts. It reported a 74% revenue increase in the second quarter in accessories and apparel, with handbag sales rising 30% thanks to popular styles like structured mini satchels. Apparel revenues grew nearly 80% and the launch of Madden Girl apparel at major retailers such as Macy's and Kohl’s underscores its expanding presence in this category.
Furthermore, Steve Madden's strategic emphasis on expanding its international presence is expected to have contributed to revenue growth. The company has been steadily increasing its footprint across key regions, including Europe, the Middle East and Africa (EMEA), the Americas (excluding the United States) and Asia Pacific (APAC). The EMEA region continues to be a major growth driver, with strong momentum from the Middle East joint venture and rapid expansion in the South Africa joint venture. By building on brand recognition and leveraging local partnerships, Steve Madden is well-positioned to capture a larger share of the global market.
However, the operating environment remains challenging as consumers cut back on discretionary spending and wholesale customers reduce orders to manage inventory. Management has expressed caution amid these tough conditions and challenging year-over-year comparisons. Higher operating expenses add to these concerns, with any further deleverage likely to pressure the bottom line. We anticipate adjusted operating expenses, as a percentage of sales, to deleverage 120 basis points in the third quarter.
What the Zacks Model Predicts for SHOO
Our proven model does not conclusively predict 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. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Steven Madden currently has an Earnings ESP of 0.00% and a Zacks Rank of 3.
Stocks With the Favorable Combination
Here are some companies, which according to our model, have the right combination of elements to beat on earnings this season.
Dutch Bros (BROS - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for third-quarter earnings per share is pegged at 12 cents, which implies a 14.3% year-over-year decline.
Dutch Bros’ top line is expected to have increased year over year. The consensus estimate for quarterly revenues is pegged at $324.5 million, which indicates growth of 22.7% from the prior-year quarter. BROS has a trailing four-quarter earnings surprise of 149%, on average.
Abercrombie & Fitch Co. (ANF - Free Report) has an Earnings ESP of +3.97% and a Zacks Rank of 2 at present. The company is anticipated to witness a top-line increase in its third-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.18 billion, which indicates an 11.3% increase from the year-ago quarter.
The company’s bottom line is expected to have increased. The consensus estimate for Abercrombie & Fitch’s earnings is pegged at $2.31 per share, up 26.2% from the year-ago quarter. ANF has a trailing four-quarter earnings surprise of 28%, on average.
Best Buy (BBY - Free Report) presently has an Earnings ESP of +0.06% and a Zacks Rank of 2. The company is likely to register a top-line decline when it reports fiscal third-quarter results. The Zacks Consensus Estimate for BBY’s quarterly revenues is pegged at $9.63 billion, which indicates a dip of 1.3% from the figure reported in the prior-year quarter.
The consensus estimate for Best Buy’s quarterly earnings has remained unchanged over the past 30 days at $1.30 per share. The figure indicates growth of 0.8% from the year-ago quarter’s number. BBY delivered an average earnings surprise of 11.4% in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.