Shoe and apparel company Steven Madden (NASDAQ: SHOO) will be reporting earnings this Wednesday morning. Here’s what investors should know.
Steven Madden missed analysts’ revenue expectations by 1% last quarter, reporting revenues of $553.5 million, flat year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
Is Steven Madden a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Steven Madden’s revenue to grow 10.6% year on year to $579.1 million, slowing from the 17.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.23 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 3 downward revisions over the last 30 days (we track 7 analysts). Steven Madden has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.8% on average.
Looking at Steven Madden’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Nike’s revenues decreased 12% year on year, beating analysts’ expectations by 3.4%, and Deckers reported revenues up 16.9%, topping estimates by 7.2%. Nike traded up 15.2% following the results while Deckers was also up 11.3%.
Read our full analysis of Nike’s results here and Deckers’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 9.6% on average over the last month. Steven Madden is up 12.2% during the same time and is heading into earnings with an average analyst price target of $28.38 (compared to the current share price of $26.90).
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