Steven Madden Ltd. Earnings Cheat Sheet: Profits Grow by Double Digits For Fifth Straight Quarter
Steven Madden, Ltd. (NASDAQ:SHOO) reported higher profit for the second quarter as revenue showed growth. Steven Madden designs, sources, markets and retails women’s, men’s and children’s shoes, for sale through its wholesale and retail channels.
Steven Madden Earnings Cheat Sheet for the Second Quarter
Results: Net income for Steven Madden, Ltd. rose to $23.8 million (55 cents per share) vs. $19.8 million (47 cents per share) in the same quarter a year earlier. This marks a rise of 20.1% from the year earlier quarter.
Revenue: Rose 31.8% to $209.2 million from the year earlier quarter.
Actual vs. Wall St. Expectations: SHOO beat the mean analyst estimate of 54 cents per share. It beat the average revenue estimate of $195 million.
Quoting Management: Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “Our second quarter results reflect solid execution across the Company. Our flagship Steve Madden brand led the way, as the trend-right merchandise created by Steve and his design team resulted in strong gains in the Steve Madden Women’s Wholesale, Retail and International divisions. In addition, we further enhanced our footwear and accessories offerings in the quarter with the acquisitions of Topline and Cejon, both completed in May. We believe that the continued momentum in our core business, combined with the expansion opportunities in our newer businesses, sets the stage for long term sales and earnings growth for the Company.”
The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 28%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 32.3% from the year earlier quarter.
The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 16% and in the fourth quarter of the last fiscal year, the figure rose 30%.
The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the first quarter, by 4 cents in the fourth quarter of the last fiscal year, and by 3 cents in the third quarter of the last fiscal year.
Gross margin shrank five percentage points to 40.2%. The contraction appeared to be driven by increased costs, which rose 39.2% from the year earlier quarter while revenue rose 27.6%.
Competitors to Watch: Brown Shoe Company, Inc. (NYSE:BWS), Skechers USA, Inc. (NYSE:SKX), Deckers Outdoor Corp. (NASDAQ:DECK), TOD’S SpA (NYSE:TOD), Crocs (NASDAQ:CROX), J.C. Penney (NYSE:JCP), Nordstrom (NYSE:JWN), Macy’s (NYSE:M), Saks (NYSE:SKS), Kenneth Cole Productions (NYSE:KCP), The Timberland Company (NYSE:TBL) and NIKE, Inc. (NYSE:NKE).
(Source: Xignite Financials)