Steven Madden Q4 Earnings Beat Estimates, Sales Increase Y/Y

Steven Madden, Ltd. SHOO reported fourth-quarter 2024 results, wherein both top and bottom lines beat the Zacks Consensus Estimate. Total revenues increased, while earnings decreased from the year-ago period’s actuals.Management attributed the strong performance in 2024 to robust gains in international markets, expansion in non-footwear categories and strength in direct-to-consumer (“DTC”) channels, along with a return to revenue growth in the U.S. wholesale footwear business.Looking ahead to 2025, the company remains cautious about the near-term outlook, anticipating significant headwinds, particularly the impact of new tariffs on goods imported into the United States. However, with a proven ability to navigate challenging market conditions through agile business model, the company is poised to strengthen its growth trajectory with the pending acquisition of Kurt Geiger, expected to close in the second quarter of 2025.Share of SHOO decline 8.1% during trading session yesterday. In the past month, shares of this Zacks Rank #5 (Strong Sell) company have lost 15.9% against the industry’s 3.1% growth.Steven Madden’s Quarterly Performance: Key InsightsSteven Madden posted adjusted quarterly earnings of 55 cents per share, which beat the Zacks Consensus Estimate of 54 cents. The metric decreased 9.8% from 61 cents in the prior-year period.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. QuoteTotal revenues rose 12% year over year to $582.3 million. Net sales of $578.8 million went up 11.9% and commission and licensing fee income of $3.5 million increased 31.5% from the year-ago period. The top line beat the consensus estimate of $549 million.Adjusted gross profit rose 8.6% year over year to $235.5 million. We note that the adjusted gross margin contracted 130 basis points (bps) to 40.4%. We expected a gross margin contraction of 10 bps.The company’s adjusted operating expenses increased 11.6% year over year to $182.9 million. As a percentage of revenues, adjusted operating expenses decreased 10 bps year over year to 31.4%. We forecasted an increase of 9.3% in adjusted operating expenses.Steven Madden reported an adjusted operating income of $52.6 million, down 0.6% from the prior-year quarter. The adjusted operating margin decreased 120 bps to 9%. We expected an adjusted operating margin of 8.9% for the quarter.SHOO’s Segment-Wise Performance DetailsRevenues for the Wholesale business improved 13.6% year over year to $402.9 million, which beat our estimate of $371.3 million. Wholesale footwear revenues increased 1%, while wholesale accessories/apparel revenues surged 35.4%. Gross profit, as a percentage of wholesale revenues was 30.5% compared with 31.7% in the fourth quarter of 2023, driven by a higher mix of private label business. We expected the gross margin to be 31.1%. DTC revenues increased 8.4% year over year to $176 million in the quarter, driven by gains in both brick-and-mortar and e-commerce channels. Our model expected total DTC revenues of $173.4 million for the quarter.Gross profit, as a percentage of direct-to-consumer revenues, was 62% compared with 62.7% in the fourth quarter of 2023, driven by increased promotional activity. We anticipated a 20-bps improvement in gross margin. SHOO ended the fourth quarter with 291 brick-and-mortar retail outlets, five e-commerce websites and 42 company-operated concessions across the international markets.SHOO’s Financial Health SnapshotSteven Madden ended the quarter with cash and cash equivalents of $189.9 million, short-term investments of $13.5 million and stockholders’ equity of $876 million, including non-controlling interest of $28.3 million. In the reported quarter, SHOO repurchased $2.6 million of its common stock, including shares acquired via the net settlement of employees’ stock awards. The company announced a cash dividend of 21 cents per share, payable on March 21, 2025, to its shareholders of record as of March 10.SHOO’s 2024 OutlookFor 2025, the company anticipates a 17-19% increase in revenues from 2024. The company anticipates adjusted earnings in the range of $2.30-$2.40 per share. This outlook assumes the Kurt Geiger acquisition closes on May 1, 2025.Image Source: Zacks Investment ResearchStocks to ConsiderDeckers Outdoor Corporation DECK designs, markets and distributes footwear, apparel and accessories for casual lifestyle use and high-performance activities in the United States and internationally. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Deckers’ current financial-year sales and earnings indicates growth of 15.3% and 20%, respectively, from the year-ago figure. DECK delivered an average earnings surprise of 36.8% in the trailing four quarters.Boot Barn Holdings, Inc. BOOT operates specialty retail stores in the United States and internationally. The company offers western and work-related footwear, apparel and accessories. It currently flaunts a Zacks Rank #1. BOOT delivered a trailing four-quarter earnings surprise of 7.2%, on average. The Zacks Consensus Estimate for Boot Barn’s current financial-year sales and earnings indicates growth of 14.9% and 21.4%, respectively, from the year-ago figure.Nordstrom, Inc. JWN, a fashion retailer, provides apparels, shoes, beauty, accessories and home goods for women, men, young adults and children. It currently holds a Zacks Rank of 2 (Buy). JWN delivered an earnings surprise of 43.5% in the last reported quarter.The consensus estimate for Nordstrom’s current financial-year sales indicates growth of 2% from the year-ago figure.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Deckers Outdoor Corporation (DECK): Free Stock Analysis Report Nordstrom, Inc. (JWN): Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT): Free Stock Analysis Report Steven Madden, Ltd. (SHOO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks