What's Going On With Steven Madden Shares After Q4 Results?

Steven Madden, Ltd. SHOO shares are trading lower on Wednesday.

The company reported fourth-quarter adjusted earnings per share of 61 cents, beating the Wall Street View of 57 cents. 

Quarterly revenues of $519.714 million surpassed the analyst consensus of $511.968 million. Revenue increased 10.4% year over year.

Direct-to-consumer revenue was $162.3 million, a 1.9% increase year over year, driven by an increase in the brick-and-mortar business. Revenue for the wholesale business was $354.8 million, a 14.9% increase year over year.

Gross profit as a percentage of revenue was 41.3% compared to 42.2% in the same period of 2022. Adjusted operating expenses as a percentage of revenue were 31.5% compared to 33.2% in the same period of 2022.

The company ended the quarter with 255 company-operated brick-and-mortar retail stores and five e-commerce websites, as well as 25 company-operated concessions in international markets.

As of December 31, 2023, cash and equivalents totaled $219.8 million. Inventory totaled $229.0 million as of the same date, approximately flat to the prior year.

The company approved a quarterly cash dividend of $0.21 per share. The dividend is payable on March 22, 2024, to stockholders of record on March 8, 2024.

Outlook: For 2024, the company expects revenue to increase 11% to 13% compared to 2023. Steven Madden expects EPS of $2.55 to $2.65 (estimate: $2.69).

Analyst Reaction: Telsey Advisory Group analyst Dana Telsey reiterated the Market Perform rating on the stock, with an unchanged price forecast at $39.

The analyst continues to see the company’s ability to test and react to trends and chase demand in-season as a competitive advantage.

In addition, an improving inventory position and easier prior-year wholesale compares should support better performance heading into FY24, the analyst adds.

Price Action: SHOO shares are trading lower by 2.77% to $42.42 on the last check Wednesday. 

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