Steve Madden (SHOO) Q2 Earnings Beat Estimates, Surge Y/Y
Zacks Investment Research | Jul 30, 2019 09:00PM ET
Steve Madden, Ltd. (NASDAQ:SHOO) reported better-than-expected second-quarter 2019 results. Notably, both the top and bottom lines continue to improve year over year. This NY-based company witnessed robust gains at its flagship Steve Madden brand with sturdy performance in the wholesale footwear and accessories businesses in both domestic and international markets, and solid growth on stevemadden.com.
Encouragingly, management stated that the company remains well on track to attain the set guidance for 2019, in spite of an estimated incremental headwind of roughly 5 cents a share on account of higher tariffs that came into effect from May 10.
Q2 Details
This designer and marketer of fashion footwear and accessories delivered adjusted quarterly earnings of 47 cents a share that surpassed the Zacks Consensus Estimate of 42 cents, marking the seventh straight quarter of beat. The quarterly earnings also increased 14.6% from 41 cents reported in the year-ago period. Although the company witnessed increase in cost of sales (up 12.8%) and adjusted operating expenses (up 12.4%), the bottom line improved on higher net sales and share repurchases to some extent.
The top line increased 12.4% year over year to $445 million and beat the Zacks Consensus Estimate of $420.2 million. This was the third successive quarter of revenue beat.
Net sales for the wholesale business rose 13.1% to $363.5 million, reflecting robust gain in wholesale footwear and accessories businesses.
We note that wholesale footwear net sales advanced 13.5% driven by sturdy performance in Steve Madden, the addition of Anne Klein and increase in private label business (excluding Payless ShoeSource). Wholesale accessories net sales improved 11.5% buoyed by solid gain in Steve Madden handbags and robust growth in the private label business.
Retail net sales jumped 9.6% to $81.5 million, while same-store sales increased 6.2% on account of sturdy performance in e-commerce business.
Steven Madden, Ltd. Price, Consensus and EPS Surprise
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