Steven Madden Ltd.
) is set to report second-quarter fiscal 2014 results on Jul 31.
Last quarter, the shoes and apparel retailer delivered in-line
The company reported in-line earnings for three out of the last
four quarters. Let's see how things are shaping up for this
Factors to Consider This Quarter
Steven Madden's top line has been affected by harsh winter
conditions and slow store traffic in the past couple of quarters.
Moreover, limited new fashion trends at the stores failed to
attract shoppers which added to the company's woes. Management
expects the tough retail conditions to continue in the second
quarter as well.
Further, slow sales in the first few months of the 2014 resulted
in piled up inventory in Steven Madden's retail segment. The
company will have to clear its stock by offering heavy discounts
and through promotional strategies which will put pressure on
margins in the coming quarter.
However, summer is expected to spur the pent-up demand for
the company's products. Moreover, Steven Madden revamped its
website in Mar 2014. The new site offers a much improved experience
on mobile and tablets and innovative social media integration. The
initiative is expected to lead to uptick in sales in the to-be
Our proven model does not conclusively show that Steven Madden
is likely to beat earnings this quarter. A stock needs to have both
and a Zacks Rank #1, 2 or 3 to surpass earnings estimate. However,
that is not the case here due to the following factors:
ESP for Steven Madden is 0.00%.
Steven Madden has a Zacks Rank #2 (Buy) which when combined with a
0.00% ESP makes surprise prediction difficult.
We caution against stocks with Zacks Rank #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies that, according to our model, have
the right combination of elements to post an earnings beat this
Treehouse Foods Inc. (
), with an Earnings ESP of +1.21% and a Zacks Rank #1 (Strong
Colgate-Palmolive Co. (
), with an Earnings ESP of +1.37% and a Zacks Rank #2.
The J. M. Smucker Company (
), with an Earnings ESP of +1.46% and a Zacks Rank #3 (Hold).
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STEVEN MADDEN (SHOO): Free Stock Analysis
COLGATE PALMOLI (CL): Free Stock Analysis
SMUCKER JM (SJM): Free Stock Analysis Report
TREEHOUSE FOODS (THS): Free Stock Analysis
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