Steven Madden Shares Dip on Q3 Revenue Miss, Tariff Impact
Steven Madden Ltd.'s shares dipped in pre-market trading today, following a miss on Wall Street's revenue estimates for the third quarter. The stock fell by 1.31 percent to $32.41.
The company's wholesale revenue took a hit, dropping 10.7 percent to $442.7 million. Excluding the Kurt Geiger brand, this decrease was even steeper at 19.0 percent. Net income also plummeted, down 62.9 percent to $20.5 million, or 29 cents a diluted share. The challenging quarter was largely attributed to new tariffs on imported goods into the United States.
Despite the setback, consumers showed enthusiasm for the firm's fall assortments, particularly in the Steve Madden brand. Total revenue saw a 6.9 percent increase to $667.9 million, though it fell short of Wall Street's estimate of $698.8 million. The improved trend in the Steve Madden brand, coupled with strategies to mitigate tariffs and the contribution from the Kurt Geiger acquisition, sets the stage for stronger financial results in the fourth quarter.
Jefferies analyst Corey Tarlowe expects a fourth-quarter earnings per share of $0.72 for Steven Madden Ltd. The company itself anticipates adjusted diluted EPS to be in the range of 41 cents to 46 cents for the same period. As the company looks ahead, it is well-positioned for improved financial performance.
