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Will Steven Madden (SHOO) Witness Higher Earnings in Q2?
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Steven Madden, Ltd. (SHOO - Free Report) is scheduled to report second-quarter 2019 financial numbers on Jul 30, before the opening bell. This New York-based company is likely to register improvement in the bottom line when it reports quarterly numbers. Notably, this designer, marketer and seller of footwear and fashion accessories has reported solid earnings in the preceding four quarters. It has also comfortably surpassed the Zacks Consensus Estimate on all four occasions.
In the trailing four quarters, the company outperformed the Zacks Consensus Estimate by an average of 8.5%. In the last reported quarter, the company delivered positive earnings surprise of 13.5%.
Drawing focus back on the to-be-reported quarter, the Zacks Consensus Estimate for earnings is currently pegged at 42 cents, a penny higher than the year-ago quarter’s figure. We note that the Zacks Consensus Estimate has remained unchanged in the past 30 days. The Zacks Consensus Estimate for revenues is pegged at $420.2 million, indicating an increase of about 6.2% from the year-ago quarter. We note that the top and the bottom lines had increased 5.6% and 16.7%, respectively in the last reported quarter.
Factors Crucial to Steven Madden’s Performance
Steven Madden is leaving no stone unturned to boost the top and the bottom lines. Notably, the company is focusing on enhancing product portfolio. It is also taking several initiatives to expand globally. Further, the company expects its international business to sustain momentum on strategic investments.
The company anticipates growth in the international market on the back of the SM Europe JV, SM Mexico and its new JV in Israel. Moreover, the company has been witnessing healthy growth in the wholesale footwear and accessories segments, and gaining traction in e-commerce business.
We note that despite the bankruptcy of Payless ShoeSource, the company remains well positioned given strong non-Payless private label business, momentum across Steve Madden women's wholesale footwear business, and contributions from Anne Klein and Blondo. Moreover, the company projects sturdy growth in wholesale accessories for 2019, driven by an anticipated impressive performance in Steve Madden handbags and private label.
However, cost of goods sold and operating expenses have been increasing that may weigh on margins to an extent. Additionally, the imposition of tariffs on additional consumer goods such as shoes, handbags and others imported from China, owing to US-China trade war may hurt business to an extent. Nonetheless, the company is shifting its production to Cambodia in order to lower its dependency on China.
Steven Madden, Ltd. Price, Consensus and EPS Surprise
Our proven model does not conclusively show that Steven Madden is likely to beat estimates this quarter. A stock needs to have both — a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Steven Madden has a Zacks Rank #4 (Sell) and an Earnings ESP of +2.79%, which makes surprise prediction difficult.
3 Stocks With a Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Ross Stores (ROST - Free Report) has an Earnings ESP of +0.89% and a Zacks Rank #3.
Columbia Sportswear Company (COLM - Free Report) has an Earnings ESP of +40.00% and a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Will Steven Madden (SHOO) Witness Higher Earnings in Q2?
Steven Madden, Ltd. (SHOO - Free Report) is scheduled to report second-quarter 2019 financial numbers on Jul 30, before the opening bell. This New York-based company is likely to register improvement in the bottom line when it reports quarterly numbers. Notably, this designer, marketer and seller of footwear and fashion accessories has reported solid earnings in the preceding four quarters. It has also comfortably surpassed the Zacks Consensus Estimate on all four occasions.
In the trailing four quarters, the company outperformed the Zacks Consensus Estimate by an average of 8.5%. In the last reported quarter, the company delivered positive earnings surprise of 13.5%.
Drawing focus back on the to-be-reported quarter, the Zacks Consensus Estimate for earnings is currently pegged at 42 cents, a penny higher than the year-ago quarter’s figure. We note that the Zacks Consensus Estimate has remained unchanged in the past 30 days. The Zacks Consensus Estimate for revenues is pegged at $420.2 million, indicating an increase of about 6.2% from the year-ago quarter. We note that the top and the bottom lines had increased 5.6% and 16.7%, respectively in the last reported quarter.
Factors Crucial to Steven Madden’s Performance
Steven Madden is leaving no stone unturned to boost the top and the bottom lines. Notably, the company is focusing on enhancing product portfolio. It is also taking several initiatives to expand globally. Further, the company expects its international business to sustain momentum on strategic investments.
The company anticipates growth in the international market on the back of the SM Europe JV, SM Mexico and its new JV in Israel. Moreover, the company has been witnessing healthy growth in the wholesale footwear and accessories segments, and gaining traction in e-commerce business.
We note that despite the bankruptcy of Payless ShoeSource, the company remains well positioned given strong non-Payless private label business, momentum across Steve Madden women's wholesale footwear business, and contributions from Anne Klein and Blondo. Moreover, the company projects sturdy growth in wholesale accessories for 2019, driven by an anticipated impressive performance in Steve Madden handbags and private label.
However, cost of goods sold and operating expenses have been increasing that may weigh on margins to an extent. Additionally, the imposition of tariffs on additional consumer goods such as shoes, handbags and others imported from China, owing to US-China trade war may hurt business to an extent. Nonetheless, the company is shifting its production to Cambodia in order to lower its dependency on China.
Steven Madden, Ltd. Price, Consensus and EPS Surprise
Steven Madden, Ltd. price-consensus-eps-surprise-chart | Steven Madden, Ltd. Quote
What the Zacks Model Unveils
Our proven model does not conclusively show that Steven Madden is likely to beat estimates this quarter. A stock needs to have both — a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Steven Madden has a Zacks Rank #4 (Sell) and an Earnings ESP of +2.79%, which makes surprise prediction difficult.
3 Stocks With a Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
L Brands has an Earnings ESP of +0.89% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ross Stores (ROST - Free Report) has an Earnings ESP of +0.89% and a Zacks Rank #3.
Columbia Sportswear Company (COLM - Free Report) has an Earnings ESP of +40.00% and a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>