Hot Stock in the Spotlight: Steven Madden, Ltd. (NASDAQ: SHOO)

On Friday, Shares of Steven Madden, Ltd. (NASDAQ: SHOO) showed the bullish trend with a higher momentum of 0.27% to $36.47. The company traded total volume of 3,235 shares as contrast to its average volume of 588.79K shares. The company has a market value of $3.05B and about 83.82M shares outstanding.

Steve Madden (SHOO), a leading designer and marketer of fashion footwear and accessories for women, men and children, recently declared financial results for the fourth quarter and full year ended December 31, 2018.

Fourth Quarter 2018 Segment Results:

Net sales for the wholesale business increased 14.1% to $317.40M in the fourth quarter of 2018, driven by strong growth in both wholesale footwear and wholesale accessories.  Gross margin in the wholesale business reduced to 30.1% contrast to 31.0% in last year’s fourth quarter because of a decline in wholesale accessories driven by sales mix, as well as the impact of the 10% tariff on handbags and certain other accessory categories implemented on September 24, 2018 and increased ocean freight costs.

Retail net sales in the fourth quarter rose 7.9% to $93.00M contrast to $86.20M in the fourth quarter of the prior year.  Same store sales increased 4.0% in the quarter driven by strong performance in the Company’s e-commerce business.  Retail gross margin rose to 61.0% in the fourth quarter of 2018, up 20 basis points contrast to 60.8% in the fourth quarter of the prior year because of improved gross margin in the Company’s e-commerce business.

The Company’s effective tax rate for the fourth quarter of 2018 was 52.7% contrast to 23.2% in the fourth quarter of 2017 driven by $11.10M in tax expense resulting from the Tax Cuts and Jobs Act transition tax and prepaid tax adjustments related to prior years.  On an Adjusted basis, the effective tax rate was 9.2% contrast to 24.9% in the fourth quarter of the prior year due mainly to the impact of the Tax Cuts and Jobs Act.

Full Year Ended December 31, 2018:

For the full year ended December 31, 2018, net sales increased 7.0% to $1.650B from $1.550B in the prior year.

Net income was $129.10M, or $1.50 per diluted share, for the year ended December 31, 2018 contrast to net income of $117.90M, or $1.36 per diluted share, for the year ended December 31, 2017.  On an Adjusted basis, net income was $157.70M, or $1.83 per diluted share, for the year ended December 31, 2018 contrast to net income of $129.30M, or $1.49 per diluted share, for the year ended December 31, 2017.

Balance Sheet and Cash Flow:

During the fourth quarter of 2018, the Company repurchased 1.80M shares of the Company’s common stock for about $55.00M, which includes shares attained through the net settlement of employee stock awards.  For the full year ended December 31, 2018, the Company repurchased 3.40M shares of the Company’s common stock for about $105.90M, which includes shares attained through the net settlement of employee stock awards.

As of December 31, 2018, cash, cash equivalents, and current marketable securities totaled $267.00M.

The Company offered net profit margin of 8.50% while its gross profit margin was 37.30%. ROE was recorded as 17.20% while beta factor was 0.58. The stock, as of recent close, has shown the weekly upbeat performance of 3.88% which was maintained at 20.19% in this year.

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