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Watch List: Steven Madden (NASDAQ: SHOO)

LONG ISLAND CITY, N.Y., July 10, 2019 – Shares of Steven Madden (NASDAQ: SHOO) declined -2.06% to $32.27. The stock traded total volume of 412.211K shares lower than the average volume of 573.60K shares.

Steven Madden Ltd. (SHOO) reported first-quarter net income of $34.50M. On a per-share basis, the Long Island City, New York-based company said it had net income of 41 cents. Earnings, adjusted for non-recurring costs, were 42 cents per share. The results topped Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of 37 cents per share.

First Quarter 2019 Segment Results:

Net sales for the wholesale business increased 5.1% to $348.10M in the first quarter of 2019, driven by strong growth in wholesale accessories. Wholesale footwear net sales increased slightly, as strong growth in Steve Madden and the addition of Anne Klein were mostly offset by not recognizing sales to Payless ShoeSource in the current period. Gross margin in the wholesale business increased to 34.5% contrast to 32.6% in last year’s first quarter, with gross margin improvement in wholesale footwear partially offset by a decline in wholesale accessories because of sales mix.

Retail net sales in the first quarter rose 8.6% to $62.80M contrast to $57.90M in the first quarter of the prior year. Same store sales increased 6.3% in the quarter driven by strong performance in the Company’s e-commerce business. Retail gross margin rose to 58.5% in the first quarter of 2019, up 180 basis points contrast to 56.7% in the first quarter of the prior year because of improved gross margin in the Company’s e-commerce business.

Balance Sheet and Cash Flow:

During the first quarter of 2019, the Company repurchased 525,491 shares of the Company’s common stock for about $17.20M, which includes shares attained through the net settlement of employee stock awards. On April 24, 2019, the Board of Directors approved a boost in the Company’s share repurchase authorization of $124.00M, bringing the total authorization up to $200.00M.

As of March 31, 2019, cash, cash equivalents and current marketable securities totaled $221.60M.

SHOO has the market capitalization of $2.72B and its EPS growth ratio for the past five years was 2.80%. The return on assets ratio of the Company was 12.00% while its return on investment ratio stands at 15.80%. Price to sales ratio was 1.62 while 97.30% of the stock was owned by institutional investors.