Steven Madden Q1 Earnings Beat Estimates, Revenues Increase Y/Y

Steven Madden, Ltd. SHOO reported first-quarter 2025 results, wherein the top line lagged the Zacks Consensus Estimate, while the bottom line surpassed the same. Total revenues increased and earnings decreased from the year-ago period.SHOO’s first-quarter results were driven by strong execution of strategic initiatives despite challenges from new tariffs on U.S. imports. Focused on adapting to market changes, the company aims to mitigate near-term impacts while positioning for long-term growth. The recent acquisition of Kurt Geiger is viewed as a key growth engine, aligning with strategic goals in international expansion, accessories and direct-to-consumer (DTC) channels.Amid macroeconomic uncertainty stemming from new tariffs, the company has withdrawn its 2025 financial guidance, initially provided on Feb. 26, 2025. SHOO is not issuing any guidance at this time.Steven Madden, Ltd. Price, Consensus and EPS Surprise  Steven Madden, Ltd. price-consensus-eps-surprise-chart | Steven Madden, Ltd. QuoteSteven Madden’s Quarterly Performance: Key InsightsSHOO posted adjusted quarterly earnings of 60 cents per share, which beat the Zacks Consensus Estimate of 46 cents. The metric decreased 7.7% from 65 cents in the prior-year period. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Total revenues rose 0.2% year over year to $553.5 million. Net sales of $551.4 million went up 0.1%, and commission and licensing fee income of $2.2 million increased 18.6% from the year-ago period. The top line missed the consensus estimate of $562 million.Adjusted gross profit rose 0.7% year over year to $226.5 million, which missed our estimate of $226.9 million. We note that the adjusted gross margin expanded 20 basis points (bps) to 40.9%. The company’s adjusted operating expenses increased 3.9% year over year to $170.5 million. As a percentage of revenues, adjusted operating expenses increased 110 bps year over year to 30.8%.Steven Madden reported an adjusted operating income of $56.1 million, down 8% from the prior-year quarter. The adjusted operating margin decreased 90 bps to 10.1%. We expected an adjusted operating margin of 7.6% for the quarter.SHOO’s Segment-Wise Performance DetailsThe wholesale business recorded revenues of $439.3 million, which missed our estimate of $440.9 million but inched up 0.2% from the first quarter of 2024, driven by a 0.2% rise in wholesale footwear revenues and 0.4% growth in wholesale accessories/apparel revenues. Gross profit as a percentage of wholesale revenues improves to 35.7%, up 60 bps from 35.1% in the prior-year quarter, supported by gains in both footwear and accessories/apparel channels. We expected the gross margin to be 34.3%.Meanwhile, DTC revenues edged down 0.2% to $112.1 million from the first quarter of 2024. Our model expected total DTC revenues of $121.4 million for the quarter. Gross profit as a percentage of DTC revenues fell 180 bps year over year to 60.1% due to increased promotional activities. We anticipated a 130-bps decline in the gross margin. The company ended the first quarter with 314 brick-and-mortar retail outlets, five e-commerce websites and 61 company-operated concessions across the international markets.SHOO Stock Past Three-Month Performance Image Source: Zacks Investment Research SHOO’s Financial Health SnapshotSteven Madden ended the quarter with cash and cash equivalents of $144.8 million, short-term investments of $2.5 million, and stockholders’ equity of $903.7 million, including non-controlling interest of $28.3 million.In the first quarter, the company did not repurchase any shares of its common stock in the open market but spent $7.8 million on share repurchases through the net settlement of employees' stock awards.SHOO announced a cash dividend of 21 cents per share, payable June 20, 2025, to its shareholders of record as of June 9.On May 6, 2025, the company completed its acquisition of the U.K.-based Kurt Geiger from a group led by Cinven for approximately £289 million in cash. Kurt Geiger reported revenues of £400 million for the 12 months ending Feb. 1, 2025. To fund the acquisition, the company entered a credit agreement, securing a $300-million term-loan facility and a $250-million revolving credit facility, alongside utilizing cash on hand.In the past month, shares of this Zacks Rank #4 (Sell) company have lost 46.6% against the industry’s 18.1% growth.Stocks to ConsiderSome better-ranked stocks are Stitch Fix SFIX, Canada Goose GOOS and G-III Apparel Group, Ltd. GIII.Stitch Fix delivers customized shipments of apparel, shoes and accessories for women, men and kids. It has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for Stitch Fix’s fiscal 2025 earnings indicates growth of 64.7% from the fiscal 2024 reported level. SFIX delivered a trailing four-quarter average earnings surprise of 48.9%.Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It carries a Zacks Rank #2 at present.The Zacks Consensus Estimate for Canada Goose’s current fiscal year’s earnings and revenues implies declines of 1.4% and 4.9%, respectively, from the year-ago actuals. GOOS delivered a trailing four-quarter average earnings surprise of 71.3%.G-III Apparel is a manufacturer, designer and distributor of apparel and accessories under three types of brands, licensed, owned and private label. It currently carries a Zacks Rank of 2.The Zacks Consensus Estimate for GIII’s fiscal 2025 earnings and revenues implies declines of 4.5% and 1.2%, respectively, from the year-ago actuals. G-III Apparel delivered a trailing four-quarter average earnings surprise of 117.8%.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 G-III Apparel Group, LTD. (GIII): Free Stock Analysis Report Steven Madden, Ltd. (SHOO): Free Stock Analysis Report Canada Goose Holdings Inc. (GOOS): Free Stock Analysis Report Stitch Fix, Inc. (SFIX): 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