Things To Note Ahead Of Steven Madden's (SHOO) Q4 Earnings

Steven Madden, Ltd. (NASDAQ:SHOO) is slated to release fourth-quarter 2019 results on Feb 27. The provider of fashion-forward footwear, apparel and accessories delivered a positive earnings surprise of 15.5% in the last reported quarter. Moreover, the company’s earnings outperformed the Zacks Consensus Estimate by 12.9%, on average, in the trailing four quarters.

The Zacks Consensus Estimate for fourth-quarter earnings has gone up by a cent over the past 30 days to 39 cents per share. However, this suggests a decrease of 7.1% from the year-ago period’s reported figure. Further, the consensus mark for revenues is pegged at $425 million, indicating a 3.6% rise from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for 2019 earnings stands at $1.95 per share. This suggests an increase of 6.6% from the year-ago period’s reported figure. Further, the consensus mark for revenues is pegged at $1.8 billion.

Key Factors to Note

Steven Madden has been benefitting from its strong wholesale business, which accounts for a major part of the company’s top line. The wholesale business has been particularly gaining from solid handbag sales. Further, Steve Madden’s focus on acquisitions has been yielding results. On its last earnings call, management had expected that GREATS and BB Dakota (acquired in August 2019) will be key catalysts. Further, strong e-commerce business has been aiding the company’s retail segment. Steve Madden’s solid international presence also bodes well. The company envisions net sales growth of 7-7.5% for 2019.

However, tariffs on goods imported from China have been concerning. Management expects an incremental headwind of 7 cents a share on 2019 earnings due to higher tariffs. Also, Steve Madden has been seeing high cost of goods sold as well as rising operating expenses. For 2019, the company expects adjusted earnings of $1.92-$1.95 per share.

What the Zacks Model Unveils

Our proven model doesn’t 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.

Steven Madden carries a Zacks Rank #4 and Earnings ESP of +0.52%.

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:

G-III Apparel Group (NASDAQ:GIII) has an Earnings ESP of +5.62% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Burlington Stores (NYSE:BURL) has an Earnings ESP of +0.02% and a Zacks Rank #2.

Target (NYSE:TGT) has an Earnings ESP of +0.78% and Zacks Rank #3.

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