Steven Madden (SHOO) Up 2.4% Since Last Earnings Report: Can It Continue?

Core Viewpoint - Steven Madden reported better-than-expected Q2 2024 earnings and revenues, surpassing estimates and showing year-over-year growth [2][3]. Financial Performance - Adjusted quarterly earnings were 57 cents per share, beating the Zacks Consensus Estimate of 51 cents, and increased by 21.3% from 47 cents in the prior year [3]. - Total revenues rose 17.6% year over year to $523.6 million, exceeding the consensus estimate of $507 million [3]. - Adjusted gross profit increased 14.4% year over year to $217.3 million, with an adjusted gross margin contracting by 110 basis points to 41.5% [4]. - Adjusted operating expenses rose 12% year over year to $162.8 million, but as a percentage of revenues, they declined by 150 basis points to 31.1% [5]. - Adjusted operating income was $54.5 million, up 22.4% from the same quarter a year ago, with an adjusted operating margin increasing by 40 basis points to 10.4% [5]. Segment Performance - Wholesale revenues improved by 22.5% year over year to $385.3 million, with wholesale accessories/apparel revenues growing by 86% [6]. - Direct-to-consumer (DTC) revenues increased by 6.4% year over year to $136.4 million [6]. Company Outlook - For 2024, the company anticipates an 11-13% increase in revenues compared to 2023, with adjusted earnings projected at $2.55-$2.65 per share [9]. - The company ended Q2 with cash and cash equivalents of $180.5 million and stockholders' equity of $808.3 million [8]. Market Position - Steven Madden has a Zacks Rank 2 (Buy) and an aggregate VGM Score of B, indicating potential for above-average returns in the coming months [12][11].