We expect Steven Madden, Ltd. SHOO to report a year-over-year increase in its top line when it releases third-quarter 2024 earnings on Nov. 7, before market open. Investors are closely monitoring for insights into the company's performance and strategic direction. 

The company has effectively established a niche in the competitive footwear market by emphasizing trendy, fashion-forward designs that attract a wide consumer base. The Zacks Consensus Estimate for third-quarter revenues is $606.8 million, which indicates an increase of 9.8% from the prior-year figure.

The bottom line is also expected to have risen year over year. Over the past 30 days, the Zacks Consensus Estimate for earnings per share has remained stable at 89 cents, which indicates an increase of 1.1% from the year-ago quarter.

Steven Madden has a trailing four-quarter earnings surprise of 9.5%, on average. In the last reported quarter, this Long Island City, NY-based company surpassed the Zacks Consensus Estimate by a margin of 11.8%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Steven Madden, Ltd. Price, Consensus and EPS Surprise

Steven Madden, Ltd. price-consensus-eps-surprise-chart | Steven Madden, Ltd. Quote

Factors Likely to Have Shaped Steven Madden's Q3 Performance

Steven Madden has been strategically concentrating on several key initiatives, which are likely to favorably impact third-quarter results. The company is prioritizing growth in its direct-to-consumer (DTC) segment, expanding into accessories and apparel beyond footwear and strengthening its international presence, all while maintaining its core U.S. wholesale business.

Steve Madden's DTC channels, especially digital sales, are anticipated to have supported its revenue growth. The company’s investments in upgrading its e-commerce platform and refining digital marketing strategies are yielding results, with stronger online engagement. Furthermore, the expansion of physical stores, alongside efficient inventory management and on-trend product selections, is likely to have boosted sales through DTC channels. We project DTC channel revenues to grow 8% year over year .

The diversification into accessories and apparel continues to be a strong growth driver for Steven Madden. The company's handbag and apparel segments have shown robust growth, with new product launches and expanded assortments in key wholesale accounts. It reported a 74% revenue increase in the second quarter in accessories and apparel, with handbag sales rising 30% thanks to popular styles like structured mini satchels. Apparel revenues grew nearly 80% and the launch of Madden Girl apparel at major retailers such as Macy's and Kohl’s underscores its expanding presence in this category.

Furthermore, Steve Madden's strategic emphasis on expanding its international presence is expected to have contributed to revenue growth. The company has been steadily increasing its footprint across key regions, including Europe, the Middle East and Africa (EMEA), the Americas (excluding the United States) and Asia Pacific (APAC). The EMEA region continues to be a major growth driver, with strong momentum from the Middle East joint venture and rapid expansion in the South Africa joint venture. By building on brand recognition and leveraging local partnerships, Steve Madden is well-positioned to capture a larger share of the global market.

However, the operating environment remains challenging as consumers cut back on discretionary spending and wholesale customers reduce orders to manage inventory. Management has expressed caution amid these tough conditions and challenging year-over-year comparisons. Higher operating expenses add to these concerns, with any further deleverage likely to pressure the bottom line. We anticipate adjusted operating expenses, as a percentage of sales, to deleverage 120 basis points in the third quarter.