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How is Steven Madden (SHOO) Placed Ahead of Q1 Earnings?

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Steven Madden, Ltd. (SHOO - Free Report) is slated to release first-quarter 2020 results on May 28, before the opening bell. The provider of fashion-forward footwear, apparel and accessories has a trailing four-quarter positive earnings surprise of 10.2%, on average.

However, the Zacks Consensus Estimate for its first-quarter earnings has been stable over the past 30 days at 21 cents, which suggests a decline of nearly 50% from the year-ago quarter’s reported figure. Further, the consensus mark for quarterly sales is pegged at $356.6 million, indicating a decline of 13.2% from the year-ago quarter’s tally.

Steven Madden, Ltd. Price and EPS Surprise

 

Steven Madden, Ltd. Price and EPS Surprise

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

Key Factors to Note

We expect adverse impact of the coronavirus pandemic to have weighed on Steven Madden’s first-quarter performance. It has withdrawn guidance for 2020 on heightened uncertainty arising from the same with respect to its global business operations. At its fourth-quarter 2019 conference call, management had said that it expects significant coronavirus impact for the quarter under review, with nearly $20-million impact on revenues. In addition, the termination of the Kate Spade footwear license and tariffs on goods imported from China are deterrents. Moreover, the Zacks Consensus Estimate for first-quarter sales stands at $330 million for the company’s Wholesale business, suggesting a decline of 5.2% year over year.

However, Steven Madden’s strategic acquisitions, including GREATS and BB Dakota, have been contributing to results. Further, its e-commerce business has been aiding the retail segment. Steven Madden’s solid international presence and flagship brand also bode well. These factors are likely to have aided the quarterly performance to some extent.

What the Zacks Model Unveils

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’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Although Steven Madden has a Zacks Rank #3, its Earnings ESP of 0.00% makes surprise prediction difficult.

Stocks With Favorable Combinations

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:

Big Lots (BIG - Free Report) has an Earnings ESP of +19.01% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Guess? (GES - Free Report) has an Earnings ESP of +12.75% and a Zacks Rank #2.

Dollar General (DG - Free Report) has an Earnings ESP of +6.69% and a Zacks Rank #2.

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Steven Madden, Ltd. (SHOO) - free report >>